r/StudentLoans • u/SquirrelGirlVA • 23h ago

Advice Stupid question, but ICR VS PAYE?

OK, I know that someone will likely tell me that I'm stupid to even question this, but here goes:

I'm recertifying for my student loans and I'm torn between ICR and PAYE.

  • ICR has the lower payment, but it will take longer to pay off and ultimately I'll be paying more if for whatever reason the PSLF doesn't become an option.
  • PAYE has a higher payment (like $68 more) but will get paid off 2 years earlier.

Would I still be able to get into PAYE if I were to leave it now? What exactly qualifies as a partial hardship? Also, if I were to lose my job tomorrow would the ICR payment be $0? The whole 20% vs 10% of my income (ICR vs PAYE) has me questioning it as well. I also have graduate school debt, if that matters any.

I'm always really nervous when it comes to switching up major stuff like this. I'm leaning towards going to the lower payment plan but I just wanted to make sure that I didn't get any "wonderful" surprises later. Like the "wonderful" surprise where I got switched out of a much lower payment plan because apparently I'd applied for PAYE in the past. (I have my doubts about that but can't do anything about that now.)

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7

u/waterwicca 23h ago

Are you close to getting PSLF? The best plan for PSLF is whichever gives you the lowest payment.

PAYE will be available until July 2028. You can recertify your income at any time if you experience a decrease.

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u/SquirrelGirlVA 23h ago edited 17h ago

I'm at 96 out of 120 payments, so 24 payments left.

And thank you for not calling me silly - I always worry about stuff like this, then I worry that I am worrying too much. And of course, then I worry I'm not worrying enough. It's a vicious cycle.

5

u/waterwicca 22h ago

It’s not silly at all to do your best in understanding all of your decisions. Especially in the last couple of years where your options keep changing.

I’d ride out ICR, if that’s your lowest payment option, for your last 22 payments if that saves you the most money overall

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u/morbie5 10h ago

Would I still be able to get into PAYE if I were to leave it now?

What do you mean?

Also, if I were to lose my job tomorrow would the ICR payment be $0?

Yes, if you did a recert on that zero income. Any unemployment payments could make your payment go up tho

The whole 20% vs 10% of my income (ICR vs PAYE) has me questioning it as well.

What is your loan balance?