Rank vs. Debt (What is more important?)

[Matthies]

If all of my loans would qualify for forgiveness and Income Based Repayment under the College Cost Reduction and Access Act, would it even be a question as to whether or not to go to Wash U?

That’s a big if, and I think its only fed loans that qualify, and as far as I know the most fed you can get a year is 21.5 k. Repayment help is not guaranteed, and even if your school has a LARP its not guaranteed you will get any $ for it or as much as you need (if more folks apply then there are funds then you get nothing). Whatever you decide make a worst case budget and make sure your OK with that, don’t go in assuming you will get anything because if you do, and don’t, your screwed. Its better to be happy you got funding than to have to change all your career goals because you did not think about what might happen if you did not.

[hbb]

That’s a big if, and I think its only fed loans that qualify, and as far as I know the most fed you can get a year is 21.5 k.

Where are you getting this $21.5k limitation from? Is the OP ineligible for GradPLUS loans for some reason? I don't see why the OP can't fund his education entirely with federal loans, thus qualifying for the IBR plan.

[Matthies]

That’s a big if, and I think its only fed loans that qualify, and as far as I know the most fed you can get a year is 21.5 k.

Where are you getting this $21.5k limitation from? Is the OP ineligible for GradPLUS loans for some reason? I don't see why the OP can't fund his education entirely with federal loans, thus qualifying for the IBR plan.

Are grad plus loans covered under the IBR, I thought only the primary fed loans?

[hbb]

What is a "primary"federal loan? I haven't seen that term used to classify a federal educational loan before. Parent PLUS loans are not eligible for the IBR program (nor are they available for graduate students, so its sort of a moot point in the circumstances here) - is this what you are thinking of?

All Stafford and GradPLUS loans qualify for the IBR program*. Only loans made through the Direct lending program (as opposed to FFELP lenders) qualify for the federal LRAP program, however. It's an easy matter to consolidate your FFELP federal loans into a Direct loan after graduation, but it does sort of complicate things when trying to figure out what loans are eligible.

* Perkins loans likely qualify too, but this is not always the case.

[Matthies]

What is a "primary"federal loan? I haven't seen that term used to classify a federal educational loan before. Parent PLUS loans are not eligible for the IBR program (nor are they available for graduate students, so its sort of a moot point in the circumstances here) - is this what you are thinking of?

All Stafford and GradPLUS loans qualify for the IBR program*. Only loans made through the Direct lending program (as opposed to FFELP lenders) qualify for the federal LRAP program, however. It's an easy matter to consolidate your FFELP federal loans into a Direct loan after graduation, but it does sort of complicate things when trying to figure out what loans are eligible.

* Perkins loans likely qualify too, but this is not always the case.

I thought GradPLUS loans where by private lenders so not elgiagble? I don't I didn't borrow much

[hbb]

You can get Stafford loans from private lenders as well. In fact, the majority of Stafford loans are funded by private lenders.

Regardless of the lender, a Stafford loan is a federal loan, just as a GradPLUS loan is a federal loan. Some schools participate in the Direct lending program, in which the federal government functions as the lender. Most schools, however, participate in the FFELP (Federal Family Educational Loan Program), in which private lenders function as the loan providers pursuant to a public-private partnership agreement between various banks and the federal government.

[jholth1]

So, I do know that despite major debt at Wash U, all of my loans would qualify for the new Income Based Repayment Plan and the Loan Forgiveness program if I choose to enter into a public interest position.  Knowing that information, is incurring that debt at Wash U less risky?

[hbb]

Working in public interest is not required in order to qualify for the federal IBR program.