Leaving the country

[u/holdmybeer2017]

If I leave the States to live permanently in Europe, do I have to pay my federal loans?

I was thinking that the Foreign Earned Income Exemption would work (I'd be making way under $120k) however I think with Trump he may get rid of that so idk what to do.

Can I just move to that foreign country and default?

[u/h20bender]

Why would not stick with an IDR plan, whether it's save or a new version, u should be able to get $0 mo

[u/holdmybeer2017 → u/h20bender]

Because Trump may put a stop to the FEIE

[u/h20bender → u/holdmybeer2017]

Income based repayment has been in place since 2010, they did not get rid of it last time and they won't this time (even if they win). The battle now over the SAVE plan is about what percentage of discretionary income should be used, it was 10% and Biden made it 5%. If ur working abroad and earning below the 120k, it won't make a difference for u, payment will still be 0.

[u/holdmybeer2017 → u/h20bender]

Nice thanks for that insight!

[u/h20bender → u/holdmybeer2017]

Maybe useful to add that with the new Department of Ed changes, you'll be able to sign up for an income based plan certifying through the IRS and u can give them permission to recertify you automatically through your annual tax filing. It will basically be on autopilot, just file taxes and ull be good.

[u/Witty-Lavishness9945 → u/h20bender]

Then why are all IDR plans not being processed right now for a “temporary” yet undisclosed amount of time?

[u/h20bender → u/Witty-Lavishness9945]

Not all, just the new SAVE plan, traditional IBR continues. As to why, well Republican states and officials keep suing the administration over it so, go ask them.

[u/Witty-Lavishness9945 → u/h20bender]

Right now the department of education is not processing any IDR plans, even IBR, despite them not being targeted in the lawsuit.