No. of Recommendations: 1
DS lost his job and went IBR with $25K 3% interest. He's learned a few lessons.

First, if you have more than one loan, they might get consolidated. His did, though he did not want that to happen, because one was subsidized, the other not. (I'm not sure he had a choice. Be sure and read the small print and understand what is happening. I don't think he did his DD.)

Second, when you apply for IBR, and you lost your job, you have to file a form saying that you are unemployed. Otherwise, they specify a payment based on your last income tax form.

Third, if your job changes, and your salary goes down, wait for two paystubs, then submit those to get a new payment rate.

And a financial consideration. If you have the means, at least pay the interest. You don't really want your debt to double (3%) or quadruple (6%) from letting the interest compound over 25 years. When it is forgiven, you'll have to pay income tax on the forgiven amount. So you still want to pay it off eventually if you can. The future may look bleak now, but that may not last. (OTOH, this is much better than default.)
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