With my recertification not due until 2/1/2026 - what is my best option?
Hello!
So this is kind of a tax related question so if it isn't allowed just let me know.
My goal has been for me to continue on an IDR (I am not on SAVE - which I know will likely cease to exist) and make my minimum payment as low as possible and pay it over the course of 25ish years. With the SAVE plan I used a calculator and it seemed that if I paid the monthly payments it would end up quite similar to my amount owed (around 170k from undergrad and mainly a doctoral program).
Last year I decided to do 2 things:
file my taxes as "married filing separately"
Contribute the max to my 401k
In theory, these should decrease my monthly payment for student loans by decreasing my reported income for my payment plan.
However, with everything up in the air I am unsure if I should continue doing both of these things as now I do not need to rectify until 2/2026.
I guess my question is...will my income and decisions this year (e.g. 401k contributions and filing status) impact my payments for when I have to rectify in 2026? Sorry if this is confusing or in the wrong sub again!
There is a lot of uncertainty regarding the student loan programs and just want to make the best financial choice.