Income-based student loan payments may not be the best option.

Student debt…there are a few options for repayment.

When you are first starting out in the world, and have virtually no income, that income-based repayment plan may seem like the best option. It may even be the only option you can afford. But as your income increases, it that repayment plan may cause problems.

An article by U.S. News and World Report explains how this could affect your taxes.

“As with existing repayment plans, forgiveness would be taxed as income. The new plan would be an improvement for some borrowers, but others may find their current plan is a better fit for their circumstances.​”

To read more about the pros and cons of income-based repayment plans, click here.

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