NELRP 2011 awardees

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So, I decided to start the thread as Strider suggested. Great idea :up:;) for us awardees to start talking. I have read that the way we get further taxed is that this now becomes a part of our reported taxable income when we file taxes, so thats how we are taxed twice unfortunately.

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I haven't decided how to apply my award yet, but right now I'm leaning toward paying one loan off at a time.

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Yes that makes the most significant impact on this deal! Go with the lowest loan amount plus you can squeeze out two extra loan payments if you send biweekly payments. 52 weeks in a year/2 bi weekly payments a month = 26 bi weekly payments or 13 total payments x 2 years is 26 payments not just the 24 you were awarded, not much but hey thats 2 more payments. You have to play it right though it has to be sent right before the billing cycle ends (saves interest). make sense? ehh..ehhh..

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Yes our income bracket went up! with my wife and I both working we might be at that threshold where we wont get child credit and others so may be a bummer. If your income is 50k now its 90k and instead of paying your tax rate at 50k of about 20% (dont know exact number examples) now you pay on new tax bracket of 90k which might be lets say 24% so eventhough they took the "taxes" out you still have to pay your true 50k income at the new 24% tax rate!!!! wow!! ok just examples I don't know the exact tax brackets, and if you are married and spouse works!! wooowee watch out you might be pushing the 150k bracket!! thats where you start losing some of the CREDITS...

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Specializes in Pediatrics, NICU Level 2.

I haven't decided entirely, but what I thought about doing was using the grant money to double the payment each month on my lowest two loans and then using the rest to apply to my largest loan. That way I can save money for the next two years and dedicate every cent towards something other than my student loans (like actually having a life...and not always worrying about money)

My thought process was that with the possibility of a 3rd year in the contract, why pay towards something myself that still has the potential to be paid through the contract?

I'm thinking that I will take these next two years to become more financially secure and that whatever remains after my contract is over, I can make double payments and get the remainder paid off quickly.

I am a little worried about the higher tax bracket and how if will affect what I will owe, but I think I have the most I can being taken out of each check right now anyway...so maybe it will even out. To put things in perspective, this is a infinitely smaller worry than not getting an award letter at all.

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Does anyone know how difficult it is to get funded for that third year?

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Specializes in ICU, PCU.

Why would paying off your lowest amounts be better? And Jmedina can you explain the rationale behind biweekly payments again please? I definitely want to maximize these disbursements! :nurse:

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Specializes in ICU, PCU.

I would think to pay off the loans with the highest interest rates first

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Let me try to break it down: two extra loan payments if you send biweekly payments. 52 weeks in a year/2 bi weekly payments a month = 26 bi weekly payments or 13 total payments x 2 years is 26 payments not just the 24 you were awarded, not much but hey thats 2 more payments. 26 biweekly payments is equivelant to 13 monthly payments, there is 12 months in a year, the extra payment comes from the "extra payment" (13), its the same amount of money but because the interest accrues probably daily and capitalized monthly, when you do this it lowers your principal because the interest is calculated on a smaller balance. The smallest balance pays it off more quickly.

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Specializes in ICU, PCU.
Let me try to break it down: two extra loan payments if you send biweekly payments. 52 weeks in a year/2 bi weekly payments a month = 26 bi weekly payments or 13 total payments x 2 years is 26 payments not just the 24 you were awarded, not much but hey thats 2 more payments. 26 biweekly payments is equivelant to 13 monthly payments, there is 12 months in a year, the extra payment comes from the "extra payment" (13), its the same amount of money but because the interest accrues probably daily and capitalized monthly, when you do this it lowers your principal because the interest is calculated on a smaller balance. The smallest balance pays it off more quickly.

So this assumes I will make my own regularly scheduled payment and two weeks later make another payment using the award disbursement?

I intended to save more and solely use the award money towards loan payments, even if it doesn't decrease my repayment period. We just purchased a home and would benefit from the little extra saved per month.

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No using the award money, if you are awarded 1000 dollars a month, you make the monthly payment just in two disbursements about 15 days or so apart, you have to call and ask when the billing cycle ends. so give 500 before the end of billing cycle and 500 before due date...

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Specializes in Medical/ Neuro/ Telemetry.

Anyone else shocked with how much tax money is being taken out, and that it will be nowhere near 60% of your total debt??

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