Thursday, June 5, 2014

Personal Life Update: Mailing Checks

I FINALLY got around to mailing my Income-Based Repayment (IBR) plan request to my loan servicer. They needed a month's worth of paystubs to provide proof of income, so now all of that is headed over via the postal service. Up to now, my loans have been on administrative forbearance, but by doing this, it'll finally be official that I don't have to pay the standard repayment (about $350/mo.) for the duration of the year. I'll be eligible to pay $0, because my yearly income is less than my total loan debt.

Nevertheless, I did some searching yesterday and it still seems that I can deduct the sheer dollar value of the interest I pay on my loans, not a smaller proportion of what I actually paid. I dearly hope this is correct. I'm continuing to pay the interest in the hopes that when I do my taxes in 2015 I can get $2500 back for my federal tax refund (one imagines the standard deduction for the state taxes would still be redeemable) by deducting that student loan interest.

I'm paying myself in the future.

~ Rak Chazak 

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