Both REPAYE and PAYE calculate payments based on 10% of your discretionary income. When monthly budgets are stretched thin, income-driven repayment plans are designed to help you affordably pay your federal student loans. Of course, when you’re calculating your potential payments, it’s important to remember that REPAYE offers a superior interest subsidy compared with most other income-driven options. Income Driven Repayment Calculations for Married Couples. As we mentioned earlier, if you are married or you know you will be married relatively soon, you want to factor your spouse’s income and Federal student loan debt into the equation before deciding which plan to select. Monthly payment calculation: These income-driven repayment plans calculate your monthly payment as 10% of your discretionary income, which is your adjusted gross income (AGI) minus 150% of the poverty guideline for your family size. For many, signing up for REPAYE will offer huge benefits and help them stay financially afloat while paying off student debt. It’s also a good idea to take time to learn about other income-driven repayment plans and refinancing , and do … Under REPAYE, a married couple must now include the income from both partners in determining the payment. I need approximately 4 more years to finish PSLF (hopefully). This is usually the case in … The way around this problem is to file taxes as married filing separately (MFS). The Salary Calculator tells you monthly take-home, or annual earnings, considering Irish Income Tax, USC and PRSI. If he does, keep in mind that his loans will be included in both of your REPAYE calculations. With REPAYE, your loan payment is recalculated each year based on your income and your family size. REPAYE does not put a cap on your monthly payment amount, so as your income rises, so will your monthly payment. REPAYE treats married borrowers differently than the other income-driven plans. If you’re married, then your and your spouse’s income and loan debt are factored into the calculation—so that may be something to factor in when considering REPAYE. This seemed like a fair arrangement to me. If you could tell your thoughts on these questions: 1. Michael Lux November 7, 2016 Student Loan Blog, Student Loans 0 Comments. Like the rest of the plans, it sets your monthly payments based on your income, family size, and other financial factors. IBR allows Mike and me to file separately, which means Mike’s income is not calculated in that 15%. Illinois Spouse 1 federal loan debt = $100,000; Spouse 2 federal loan debt = $200,000. Obviously it’s zero now but will presumably go back to 1400 in January. Congratulations! The first thing we do as human beings when … Under the other plans, a borrower who is married and files taxes separately from his or her spouse will have a monthly payment based on the borrower’s income alone. Whereas REPAYE will calculate Mike’s income into the 10% owed every year, regardless of our filing status. If you’re married, Revised Pay As You Earn will count your spouse’s income when calculating your payment amount. Pay As You Earn (PAYE) is one of four options available under the IDR program. ; Eligible loan types: Direct subsidized loans, unsubsidized loans, direct consolidation loans that didn’t repay PLUS loans … However, we chose IBR over REPAYE because of the married borrowers section of the chart. You can use this calculator to work out if you qualify for Married Couple’s Allowance, and how much you might get. Before deciding whether REPAYE is right for you, use a Revised Pay As You Earn calculator to get an idea of what your monthly payment might be with this repayment option. Generally, your monthly payments under Income-Based Repayment (IBR), Pay As You Earn (PAYE), and Revised Pay As You Earn (REPAYE) are calculated as 10% or 15% of your "discretionary income", which is your income minus 150% of the poverty level for your family size and state. Example 1: Taxes filed jointly, both have federal Direct student loans. You are very close in your understanding of the payment cap adjusting after making income driven repayments (IDR). Right now thanks to COVID my payment is still based on taxes from 2 years ago (AGI 190k I think, payment is about $1400/month). On your income, family size, and about marriage allows for the same.! Combined income is high, then payment on REPAYE can potentially be higher than standard. 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