Student Loan Planner Student Loan Payments Are Going Up
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Aug 25, 2026 Jana McKay, student loan expert who helps borrowers with income-driven plans and tax strategies. She breaks down why many payments jumped massively after forbearance and SAVE. Short sentences explain using pre-tax accounts to lower AGI. The conversation covers marriage and filing tactics, community property quirks, timing recertification, and the looming PAYE sunset and tax treatment of forgiveness.
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Payment Shock After Years Of Forbearance
- Borrowers are seeing 10x–20x payment jumps after long periods of low or no payments.
- SAVE forbearance and COVID pauses masked yearly recertification increases so the reset feels like a shock.
Use Pre-Tax Retirement To Cut IDR Payments
- Lower your adjusted gross income by increasing pre-tax contributions like 401(k), 403(b), 457(b), or traditional IRA.
- Jana gives a concrete example: maxing a 401(k) ($24,500) can cut payments roughly $200/month on some IDR plans.
Switch Roth Contributions To Traditional
- Switch Roth contributions to traditional pre-tax accounts to reduce AGI and lower IDR payments immediately.
- Glenn notes this is an easy change when you're already contributing but currently using Roth options.