158. Understanding Income-Driven Repayment Plans for Student Loans with Chris Varela

Welcome to a special episode of the Healthcare Education Transformation Podcast! Join us as we delve into the intricacies of income-driven repayment plans for student loans with our special guest, Chris Varela from Varela Financial. We'll explore the Pay As You Earn (PAYE) plan and Income-Based Repayment 2014 (IBR 2014) plan, both of which fall under the category of income-driven repayment (IDR) plans.

Discussion Highlights:

- The PAYE and IBR 2014 plans are income-driven repayment plans designed to assist borrowers in managing their federal student loan payments based on their income levels.

- These plans are quite similar and often eligible borrowers qualify for both. They base monthly payments on 10% of discretionary income over 150% of the federal poverty line.

- We explore two case studies demonstrating the benefits of the PAYE plan in different scenarios involving family size and income levels.

- A key advantage of income-driven repayment plans is their potential for loan forgiveness. However, forgiveness comes with tax implications, which need to be carefully planned for.

- Proper preparation, understanding the front-end and back-end costs, and a solid tax strategy are essential for maximizing the benefits of these plans.

By understanding their intricacies, borrowers can potentially reduce the long-term cost of their loans and plan for the tax implications of loan forgiveness.

For personalized assistance or to learn more about income-driven repayment plans and student loan strategies, visit Varela Financial's website at varelafinancial.com and schedule a free 15-30 minute phone consultation with Chris. Take the first step towards financial success today!

Special thanks to both our sponsors, The NPTE Final Frontier, and Varela Financial!

If you are taking the NPTE or are teaching those about to take the NPTE, visit the NPTE FInal Frontier at www.NPTEFF.com and use code "HET" for 10% off all purchases at the website...and BREAKING NEWS!!!! They now have an OCS review option as well... You're welcome! You can also reach out to them on Instagram @npteff

If you're a PT and you have student loan debt, you gotta talk to these guys. What makes them unique is that they view financial planning as like running hurdles on a track. And for PTs, the first hurdle many of us run into is student loan debt. Varela Financial will help you get over that hurdle. They not only take the time to explain to you which plans you individually qualify for and how those plans work, but they ALSO take the time to show you what YOUR individual case looks like mapped out within each option. So if you're looking for help on your student loan debt, or any area of your personal finances, we highly recommend working with them. You can check out Varela Financial out at varelafinancial.com.

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