RAP, IBR, or permanent student status
Just like everyone else on SAVE, I’m currently dreading my 90 day notice and evaluating options. From what I can find, RAP is going to be at least $100 more per month than SAVE. IBR even more. But the more affordable option seems to be enrolling half time at an in state tech college which would work out to about half the monthly cost of RAP.
Best I can tell, I have around 184 months of payment credit if I stick to IBR. To be seen if that transfers to RAP. Since my current balance is about double what I borrowed initially the tax bomb is going to screw me even harder than repayment purgatory. It honestly seems to me that the most sensible option at this point may be continuous enrollment in tech programs until retirement, then re-evaluate based on current status of tax policy.
Anyone have any good reasons why this is a stupid plan?
If you’re wondering wtf I’m talking about the tldr is:
About 12k in subsidized loans for undergrad. Went to Med School, had health issues, repeated third year, ended up withdrawing. Total of 230k or so grad plus+perkins loans. Consolidated and started repayment after withdrawal. Have paid around 90k back on the various IBR/ICR/RePaye plans. Balance is now about 470k. RAP calculator says 2056 payoff with 450k tax bomb. IBR is 2035 or 36 with 700k+ tax bomb.