One big problem
With the income-based repayment plan, the income it is based on is pre-tax. I qualify for IBR as a teacher but after paying almost $12,000 in federal taxes alone, I drop from a $70,000 salary to around $58,000. And this doesn’t count the almost $4000 in state tax. Still, the IBR plan calls for a 10% of my pre-tax money for 10 years and I can’t afford a $700 payment. The IBR isn’t all it’s touted to be if it calls for payment being based pre-tax. So let’s take it a little further and petition for the IBR plan to be based on after-tax money.
