conversation: User (pcmtta): "My wife has $95,000 in student loan debt and works as a teacher for LAUSD. She is on IBR and we're thinking of going for the loan forgiveness (I also have student loan debt but it's only a third of This is where I want to make sure we don't run into any problems in the future as we're basically letting interest stack up and I don't want us to be stuck with the leftover balance to pay if loan forgiveness does not work out, especially if we could have avoided by paying a bigger payment each month.\n\nDoing the math, it seems as though we will have to pay $600/mo for 10 years to save about 23k in principal and whatever the interest accrues to 10 years from now. In theory, it's great. I also understand that if all goes well, we will be paying the large lump sum of taxes at the end (not sure what that amount will be, but we will set funds aside and prepare for it).\n\nMy questions:\n\n\n* Do we have to take any additional steps to qualify and to make sure we meet the loan forgiveness guidelines besides not missing payments on the IBR?\n\n\n* Is it possible that ~7 years into making IBR payments, loan forgiveness changes and we are stuck with the huge amount of interest? This is my biggest concern because it's not like we signed a loan forgiveness contract.\n\n              ie: government or lausd changes or rescinds the program.\n\n\n* Just want some kind of peace of mind, tell me that it's financially a better decision to take on this loan forgiveness program and continue to IBR, instead of paying $1000+ payments to pay off the $95k?\n\n\nWe're young and fresh into our careers, we just want to plan our finances for the future and figure out the best options. If there is anything else we should know about LF and IBR, that you think i'm missing, please let me know. Every post is appreciative, thank you."
  Self: "PSLF, the one that allows for forgiveness after 10 years, does not make the forgiven sum taxable."
  User (pcmtta): "Thank you, that is great news. We will keep this in mind."
  BoxingRaptor (BoxingRaptor): "Yep, that poster is correct; since your wife is a teacher, she's a government employee, and thus will not have the balance taxed at the end. \n\nBUT: You also asked about loan forgiveness policies changing. Yes, there is always the chance that these programs can change, or go away entirely. But, there's also the chance that you'll get grandfathered in, or have some other option, or something. \n\nI would keep going with the program for sure, but just keep in mind that there is a CHANCE that it might not be there forever."
  User (pcmtta): "Thank you, what you said above is what i've been hoping to get addressed. In the event that there is a change, paying the $600 or so IBR wont screw us so much in the sense that we've been only chipping away at majority interest? Even with getting grandfathered into a different plan, I'm not sure if we walk away winning."
  BoxingRaptor (BoxingRaptor): "Unfortunately no one can predict what would happen if it went away. Maybe they forgive any interest that would have accrued during the time that she was on the plan...maybe they make you cough it up, or tack it on as principle...really no one can say. But, I think you'd be nuts not to participate in the program. As of right now, it's not going anywhere. "
  User (pcmtta): "Thank you for your help. Will definitely go with the IBR/LF program. Hope it holds in 10 years time.\n\nEdit: Follow up question, is IBR plan the requirement for PSLF? or can we get by paying absolute minimum each month for 10 years and still qualify? Thank you /u/BoxingRaptor"
  