15

As the title states, I am about to finish my PhD with $140,000 dollars worth of student debt. Assuming I even obtain my desired position—a university professor—my salary will be in the upper $40,000. Of course, my summer will be free for supplementary income.

I called my loan servicer and they mentioned that the U.S. Government offers Loan Forgiveness after 10 years of full and on-time payment for the public sector. They also mentioned that my loans may qualify for an Income-Based Repayment Plan.

I suppose my question is as follows: how difficult of a financial situation have I put myself in? I am currently 30 years, not married (and have no prospects), and have no kids. Would $40k/year and an Income-Based Repayment allow me to eat food on a regular basis?

Chris W. Rea
  • 31,999
  • 17
  • 103
  • 191
sac817
  • 151
  • 3

1 Answers1

13

You can find information on qualifications and a payment calculator for Income Based Repayment here.

Assuming all your loans are qualifying and at 6.8% interest, and your adjusted gross income is $40,000, the calculator gives an estimated payment of $285/month. That's quite a bit less than half the actual interest due. Sounds like a pretty good deal.

Rick Goldstein
  • 3,436
  • 17
  • 19