Taxing the rich - what is the cutoff?

[Sheriff Gonna Getcha]

I racked up $240,000 in student loans (excluding interest) between undergrad and law school. My monthly payments are north of $1,000 per month and I'll be paying them until I am about ready to retire. If I wanted to pay them off quickly (which would make sense for the private loans, but not for the subsidized ones), I'd be looking at $2,400+ per month. If you are a similarly situated couple, have fun paying up to $5,000 combined in student loan payments per month.

[saden1]

Excellent posts Schneed10...praise lord...hallelujah.

[saden1]

Originally Posted by Sheriff Gonna Getcha

I racked up $240,000 in student loans (excluding interest) between undergrad and law school. My monthly payments are north of $1,000 per month and I'll be paying them until I am about ready to retire. If I wanted to pay them off quickly (which would make sense for the private loans, but not for the subsidized ones), I'd be looking at $2,400+ per month. If you are a similarly situated couple, have fun paying up to $5,000 combined in student loan payments per month.

Look on the bright side, it' an investment in yourself and potential earning. Plus your interest is tax deductible, and I'm not sure about this one but couldn't you deduct your loan payment as an educational expense as well?

[Sheriff Gonna Getcha]

Originally Posted by saden1

Look on the bright side, it' an investment in yourself and potential earning. Plus your interest is tax deductible, and I'm not sure about this one but couldn't you deduct your loan payment as an educational expense as well?

The interest is deductible, but I still take a huge hit on the interest for my student loans. The student loans are, to my knowledge, not deductible as an educational expense (e.g., a Hope of Lifetime Learning Credit) because I am no longer a student.

[Schneed10]

Originally Posted by Sheriff Gonna Getcha

I racked up $240,000 in student loans (excluding interest) between undergrad and law school. My monthly payments are north of $1,000 per month and I'll be paying them until I am about ready to retire. If I wanted to pay them off quickly (which would make sense for the private loans, but not for the subsidized ones), I'd be looking at $2,400+ per month. If you are a similarly situated couple, have fun paying up to $5,000 combined in student loan payments per month.

Holy shit, that's a friggin huge amount of debt. Keep in mind that student loans like that would deduct your taxes like crazy, reducing your tax liability by quite a lot, but still, in that case you're not comfortable even at $250K.

Which makes one question the logic of racking up that much debt. You'd have to make partner by your 40s to break even on the investment in schooling. That's not to question your decision to go to law school on your own dime, which I commend, but it's an indictment of the insane expenses (and growth rates) tied to higher education.