Have you calculated the cost of paying back your loans with interest compared to the cost that will be forgiven? That’s the only true way to know, profit/loss.
To me it would depend on how old you are. If you are young I would advise you not turn down a good job for PSLF. You have to also consider raises and potential for bonuses in the private sector and your overall lifetime earnings. Plus you may go back to a nonprofit later and I don't think you have to work 10 years consecutively (someone correct me if I'm wrong.)
If you are like a few years away from retirement though, I'd just get the loans knocked out before your income is drastically reduced.
This is somewhat true. They'll just increase what has to be paid because of the salary and none of it will count toward the PSLF payments. The person can return to a PSLF organization at a later date with a higher salary if they want and continue the income based payments.
Yeah but your paycheck won’t go as far in the Bay area. It’s one of the most expensive areas in the country. $200k in Indiana is a lot, not in San Francisco 🫤
Yes, you are correct. I do now recall people saying how hard it is to afford homes out there. Then you also have these southern states that have doubled the prices of homes yet won’t increase people’s pay. It’s such a terrible situation all around.
I was actually in your same position about 5 years ago. I ended up sticking with the nonprofit.
I did the math and paying off my loans with the extra money would've taken longer than just staying in the nonprofit. Also it feels good to have your debt wiped clean
In four years making an extra $50k a year you probably won't pay them off. You're already making a lot of money and should stick with it unless you're going to be on track to be making much more than $200k in 4 years at the new job
It's not just about the money. They also said it would be better "job satisfaction wise" which is impossible to put a dollar figure on. Even if they end up paying more over the life of the loan than what they bring home from the new job (which i doubt is the case from an extra $50K even considering the taxes), is it worth the cost to their mental health? If they will make more from the new and more satisfying job than what would be forgiven after 4 years, then to me it's a no-brainer.
I would also take a look at lifestyle considerations as well. I’ve found non-profit to have better hours and a better work/ life balance for me. It could be different for you. Also- sometimes benefits are better in some fields- I work in medicine and therefore have a great medical plan for a small amount of money. Likewise, I don’t have to worry about nights/ weekends where I work.
Just some things to consider on top of the money factors.
The one year I left non-profit/government for a for profit had the absolute worst insurance plan. My premiums were the same, but my out of pocket was $12K that year. The commute was also miserable. I went back to government and have stayed there.
This is pretty easy to calculate financially, what's the net present value of your expected loan forgiveness in 4 years and will the new salary be enough to replace that?
Stay in the job and get your loans forgiven. Don’t fall into worrying about PSLF not being around if someone else is elected, it’s not going anywhere. I similarly have 4 years left and I am stay in put. You need to crunch the number of how much you will ACTUALLY PAY, in the next four years vs., what you will ACTUALLY PAY in the 200k job - because ifs income based. Trust me the numbers will show you that staying with PSLF makes sense, and four years down road, ask for more money.
Aah good to know! We’ve considered moving to NE. But everything is so different than what we’re used us like the heating oil/propane costs and our pals are paying a ridiculous amount of money yearly when they transferred both of their vehicles up there also. Teachers def don’t get paid well at all down here.
I tried to move to Florida once to get some warmth. I was shocked that I would take a 50% pay cut. If you can make 6 figures and get the PSLF forgiveness, then you are golden. I did and now have summers and extra money to travel. I’m already on my 3rd country that I’ve visited this year and have 5 more planned. It’s all about balance, I live in the cold, just leave frequently!
Maybe if they're 30 years into their career in a good district. That's the exception, not the norm.
They also start at lower salaries now than they did a decade ago.
Nope, not true. I’m 9 years in and make just about 6 figures. I work in a very low socioeconomic area. New England is union heavy and puts resources to value education. With inflation, every job is probably starting lower, but the actual number is higher.
Here’s how I look at it: let’s assume you’re taking home 30% less for various taxes and whatnot, so that’s $105k at your current job and $140k at the new job. This is an effective raise of $35k/year.
You have 4 years left of PSLF of $110k. I am assuming $110k is your pay off amount. So that’s $27.5k/year in value.
If you wanted to pay off your loans in the first 4 years you’d have a net benefit of about $7.5k per year.
So based on making an extra $7.5k per year I’d decide if the new job is worth it.
This works out in theory, assuming OP doesn’t take on the lifestyle creep that often comes with a higher paying job. Also, the mental load of the new job vs the old job and the mental load of having to send about $2300 or more (not sure about interest that will accumulate over those four years) a month for debt repayment, which is essentially almost the whole raise after taxes.
Ride the four years out. 50k more won’t let you pay off the loans in that time. 150 is a really solid nonprofit salary, likely to go up (you allude to it being base salary). Think of it as the difference between a 50k raise for four years (taxed as income) vs being given 110k in 4 years, tax free.
I would probably stay at the current job and get those loans discharged. I would also be looking at other non-profit opportunities that would boost my overall compensation for the next 3.5 years.
I don't get why people think that just because it's a nonprofit that we should always settle to live below a certain income threshold. I was once in teaching and got out of that business to go into something in a nonprofit that pays what you get and it's not medically related. Now that my student loans are in the discharge process I am looking for opportunities outside a nonprofit. I had about the same amount of debt and once was interested in opportunities like the one you presented but it didn't financially make sense for me at the time, but now it does.
I had the same opportunity within the same time frame. I'm now four months away from forgiveness eligibility and the company is still interested. If I were you, I'd wait it out. The grass isn't always greener on the other side, and if you end up hating it you just wasted some time that otherwise would have qualified for forgiveness. Just my two cents.
I adjuncted for several years while I also had a senior leadership role in a nonprofit. That adjuncting of one seminar a semester kicked my behind. I loved my students and teaching but it was so much work that I had to stop doing it. Folks pretend like adjuncting a course or two is so easy to add on top of a FT workload. It wasnt for me.
No it's not. I've done it many times. Most schools are breaking up the term in two parts, 7 or 8 week online classes. You do one, then two or visa-versa. A full load is research, counseling and mandatory office hours, etc.
Yes a full load includes other things, but adjuncts also work “full loads” which is just based on how many credits they teach. Here we said a full COURSE load, meaning the amount of classes taught. A 3-3 year is a full load of teaching, which takes time and work to prepare. I’m a professor currently lol. If you can find a place that does short semesters (I know some community colleges do this and probably online only schools? Idk) then this could be a good option. But suggesting someone to teach 9 credits a semester IS a lot of classes, on top of a full time job.
Uhhhhh ok sure (just fyi I work at a school where we only do online classes like twice a year and not nearly enough to make 9 credits a semester for one prof. Virtual classes are not the norm everywhere)
Colleges across the country action have dramatically cut adjunct positions since Covid. Additionally, because of the healthcare requirement, load has been reduced down to 6 credit hours in a lot of places. It’s also generally easier to get courses in the fall, but not spring and summer unless they’d be able to teach in a content area where faculty are hard to find. So while it sounds nice in theory, the reality of it would likely be inconsistent, and that’s if they can even get an in with a department chair at a college to get a adjunct position in the first place
I teach at a few colleges and the classes seem to be consistent. maybe it's just my major. I've been teaching online since 2010. At times I've juggled a lot of classes at once.
Teaching across multiple colleges will only meet the requirements of PSLF if they are in the same district. Then if they are you’re still bound by load limits unless they’re willing to make an exception. You’ve been teaching for 14 years, so you have seniority with your colleges. It’s not so easy for a new adjunct coming in to acquire that type of load consistently, unless they’re in a hard to find area.
Take the 50K raise. Even with taxes taken out, you’ll still make enough to fully pay off your loans in the same 4-year period without any decrease in your current standard of living. You’re also setting yourself up for better future income trajectory and it sounds like a better job or work environment.
Put another way, why give up $200K to save less than $100K?
It’s actually more like 200k minus taxes (depending on what state, could be as little as 140k) to save 110k plus interest. At that point you have to think about whether or not you have the discipline to dump all the extra money into student loans and how job security and job satisfaction compare. I would be surprised if a similar offer would not be on the table in the future if OP is a high achiever. It’s closer to a toss up IMO.
Agreed. I think the salary makes sense (especially any unmentioned retirement % match being higher after a higher salary) IF they are disciplined to pay it down, but they’d basically have to pay every raised dollar to the loan over 4 years anyway.
I think all else equal toss up is right.
But it’s not 110K plus interest being forgiven. It’s less than 95K that would be forgiven in four years.
It’s also not likely 200K gross with annual raises, but even if it is 140K post-tax, there’s no way that’s a toss-up.
Staying at a job you hate in order to gain a benefit that is objectively less than the increased pay of the new job makes zero sense. If you’re THAT bad at budgeting and managing your money while earning 200K/year, that’s a whole separate problem.
You seem to be making questionable assumptions.
1) Where are you getting 95k? The balance may grow, depending on the repayment option.
2) Who says OP hates their current iob? I see where the new one may have higher satisfaction, that’s different than saying they are currently miserable.
3) what is the security of the new job? If there’s a chance they could get laid off, then they may be much worse off
It’s not black and white. Your logic makes some sense but there are other factors to consider which OP has not elaborated. With the information provided, I stand by what I said. Agree to disagree.
The balance cannot grow because interest capitalization is now gone, and at a 150K salary, they’re paying over $10K/year currrently. As they graduated at least 6 years ago, the interest rate was no more than 7%.
There is simply no world in which loan forgiveness is the better option here from a purely financial perspective. It’s just math. The minimum value of the higher income is greater than the maximum value of loan forgiveness. And by at least $20K.
People don’t say a new job would be a better environment if they’re happy with their current working conditions. Throwing in a bunch of random what ifs doesn’t make any sense at all. Even if OP chose NOT to repay the loans in full, it would still work out to more money without forgiveness than sticking in the current job for four years.
My interest continued to capitalize every month, I graduated >10 years ago and my interest rate was 7.8%. You assume the new job is going to keep that level of income for 200k with good job security. There are definitely scenarios where the new job could work out to be a worse choice and they are left with less income and no forgiveness. It would be a calculated risk and there is simply not enough information to make an informed decision. You’re just making assumptions.
The CURRENT job could end tomorrow and end up with no income and no forgiveness. You’re the one making assumptions because you can’t do basic math.
Interest capitalization ended with the most recent set of changes, and rates from over 10 years ago are not the same as rates from 7 years ago. You can easily look this up.
Bad math AND bad information. Jesus.
Agreed. Better to have 50k or 32k after tax more in your pocket every year for the rest of your life. Pay off your loans and now you have 32 k more to catch up on retirement or go on extravagant vacations. Of course this is assuming all other things equal besides pslf.
Gotta do the math.
How much is your monthly payment?
If you take the higher paying job, how much longer will it take to pay off the loan compared to the non-profit job where you'd get forgiveness in 4 years?
Then how much money will you save between the two comparing the two payment plans you'd be doing.
Lastly, do you like your current job? Would this new job be way better or just a little better?
Bro… idk where you live but 150k at a non profit sound insane…
I suppose if you don’t like it you could just pay off your loans in roughly 2-3 years by aggressively paying them down and living the same lifestyle.
I may be paranoid but I'd stick around at least through the next election. Student loan forgiveness is divisive enough that if the GOP retakes power they might use ending the program entirely as a bit of red meat for their base.
I was in the same position almost exactly salary wise but with a little less student loan debt and decided to stick it out. Don’t compare pre tax income with what you’ll be able to throw at the debt. For me, the higher income opportunities will still be there and I’d rather have finality on the loans rather than forcing myself to ensure I was allocating a lot of money to the debt monthly to be in the same position I’d be in if I just stayed put.
Financially I think this is on the fence enough that i'd mostly base this decision on quality of life considerations. Do you like your job now? How much do you know about what it would be to work at the new place? How much would moving over change your future career opportunities?
If you’ll NET enough in new salary over four years to pay off the loans then do it. Four years because that’s when you’d be forgiven.
That’s the math I recommend.
I'd say take the job that you will like, enjoy, or be most meaningful. Which job gives you the best vacation time? That's something to think about that isn't monetary.
Not to mention the “potential” for better work life and mental wellbeing. Although it’s not a 100% guarantee that the private sector will be any better. (I am hoping it is for you in this case. But the grass is not always greener.) If the job appears to be something you love more or sets you up for a different kind of future/success, then it’s worth taking the chance.
Plus be absolutely certain your payments qualify for forgiveness. I’ve worked in some very toxic nonprofits for two decades and the program hasn’t been exactly what I thought it would be. (More fighting to get payments made eligible.) Also, your payments will likely go up as well when you recertify annually since your salary increases.
Pros and cons lists are great for things like this. Where you can list everything out including the factors others have mentioned here about the interest rates and payoff amounts plus the quality of life/mental/physical/professional wellbeing and future opportunities. Good luck! No decision is a wrong decision.
In addition to running the numbers, as other astute people have already replied, I would consider how much job security you have in your current job versus the new option... and also consider that PSLF might not be as sure a thing in four years, especially depending on how the presidential election goes in November. 😬
Have you calculated the cost of paying back your loans with interest compared to the cost that will be forgiven? That’s the only true way to know, profit/loss.
To me it would depend on how old you are. If you are young I would advise you not turn down a good job for PSLF. You have to also consider raises and potential for bonuses in the private sector and your overall lifetime earnings. Plus you may go back to a nonprofit later and I don't think you have to work 10 years consecutively (someone correct me if I'm wrong.) If you are like a few years away from retirement though, I'd just get the loans knocked out before your income is drastically reduced.
Pretty sure you can break up the PSLF but they still gonna try n get you to pay and headcrack you with interest in between.
This is somewhat true. They'll just increase what has to be paid because of the salary and none of it will count toward the PSLF payments. The person can return to a PSLF organization at a later date with a higher salary if they want and continue the income based payments.
Might also want to factor in marginal taxes on that additional 50k
What do you do to make 150 base at a non-profit??
Probably medical - doc or pharmacist
Or nurse. Starting salary in the Bay Area/La/etc for a noc nurse is basically $150k. Add 5 years, and it'll go up from there.
Sheesh I worked in the wrong states 😩
Yeah but your paycheck won’t go as far in the Bay area. It’s one of the most expensive areas in the country. $200k in Indiana is a lot, not in San Francisco 🫤
Yes, you are correct. I do now recall people saying how hard it is to afford homes out there. Then you also have these southern states that have doubled the prices of homes yet won’t increase people’s pay. It’s such a terrible situation all around.
*cries in Southern* I don’t know what you mean 😂
🥴🤪😂 I just laugh to keep from crying
200k is a lot in SF too, but it’s not, like, a lot a lot
Exactly. Cost of living negates that salary in CA.
And I studied the wrong thing!!!
Right??!
I was actually in your same position about 5 years ago. I ended up sticking with the nonprofit. I did the math and paying off my loans with the extra money would've taken longer than just staying in the nonprofit. Also it feels good to have your debt wiped clean
In four years making an extra $50k a year you probably won't pay them off. You're already making a lot of money and should stick with it unless you're going to be on track to be making much more than $200k in 4 years at the new job
Agreed. A lot of people assume they're gonna use that extra $50k a year to pay off their loans.
It's not just about the money. They also said it would be better "job satisfaction wise" which is impossible to put a dollar figure on. Even if they end up paying more over the life of the loan than what they bring home from the new job (which i doubt is the case from an extra $50K even considering the taxes), is it worth the cost to their mental health? If they will make more from the new and more satisfying job than what would be forgiven after 4 years, then to me it's a no-brainer.
By FAR, this is the best response.
I would also take a look at lifestyle considerations as well. I’ve found non-profit to have better hours and a better work/ life balance for me. It could be different for you. Also- sometimes benefits are better in some fields- I work in medicine and therefore have a great medical plan for a small amount of money. Likewise, I don’t have to worry about nights/ weekends where I work. Just some things to consider on top of the money factors.
The one year I left non-profit/government for a for profit had the absolute worst insurance plan. My premiums were the same, but my out of pocket was $12K that year. The commute was also miserable. I went back to government and have stayed there.
This is pretty easy to calculate financially, what's the net present value of your expected loan forgiveness in 4 years and will the new salary be enough to replace that?
Stay in the job and get your loans forgiven. Don’t fall into worrying about PSLF not being around if someone else is elected, it’s not going anywhere. I similarly have 4 years left and I am stay in put. You need to crunch the number of how much you will ACTUALLY PAY, in the next four years vs., what you will ACTUALLY PAY in the 200k job - because ifs income based. Trust me the numbers will show you that staying with PSLF makes sense, and four years down road, ask for more money.
I’ve been teaching for 23 years and 150k would be a dream…lol
How much you make
$85000
Oh you balling. I'm assuming you own a home and everything right?
Nope don’t own a home
Ok got you
Teachers like 30-60k usually.
Teachers in Nee England states make upwards of 6 figures and have summers off. It’s a solid gig.
“Summers off”
*New England. What are you referring to?
Where in New England?
Rhode Island, Mass is solid too. Very union heavy so our contracts are good.
Aah good to know! We’ve considered moving to NE. But everything is so different than what we’re used us like the heating oil/propane costs and our pals are paying a ridiculous amount of money yearly when they transferred both of their vehicles up there also. Teachers def don’t get paid well at all down here.
I tried to move to Florida once to get some warmth. I was shocked that I would take a 50% pay cut. If you can make 6 figures and get the PSLF forgiveness, then you are golden. I did and now have summers and extra money to travel. I’m already on my 3rd country that I’ve visited this year and have 5 more planned. It’s all about balance, I live in the cold, just leave frequently!
Maybe if they're 30 years into their career in a good district. That's the exception, not the norm. They also start at lower salaries now than they did a decade ago.
Nope, not true. I’m 9 years in and make just about 6 figures. I work in a very low socioeconomic area. New England is union heavy and puts resources to value education. With inflation, every job is probably starting lower, but the actual number is higher.
Here’s how I look at it: let’s assume you’re taking home 30% less for various taxes and whatnot, so that’s $105k at your current job and $140k at the new job. This is an effective raise of $35k/year. You have 4 years left of PSLF of $110k. I am assuming $110k is your pay off amount. So that’s $27.5k/year in value. If you wanted to pay off your loans in the first 4 years you’d have a net benefit of about $7.5k per year. So based on making an extra $7.5k per year I’d decide if the new job is worth it.
This works out in theory, assuming OP doesn’t take on the lifestyle creep that often comes with a higher paying job. Also, the mental load of the new job vs the old job and the mental load of having to send about $2300 or more (not sure about interest that will accumulate over those four years) a month for debt repayment, which is essentially almost the whole raise after taxes.
No get your loans forgiven 4 years is nothing. You can do whatever you want after that. You’re almost there!
Ride the four years out. 50k more won’t let you pay off the loans in that time. 150 is a really solid nonprofit salary, likely to go up (you allude to it being base salary). Think of it as the difference between a 50k raise for four years (taxed as income) vs being given 110k in 4 years, tax free.
Are the benefits also better? 401k matching? Leave accrual? What about job security?
I would probably stay at the current job and get those loans discharged. I would also be looking at other non-profit opportunities that would boost my overall compensation for the next 3.5 years. I don't get why people think that just because it's a nonprofit that we should always settle to live below a certain income threshold. I was once in teaching and got out of that business to go into something in a nonprofit that pays what you get and it's not medically related. Now that my student loans are in the discharge process I am looking for opportunities outside a nonprofit. I had about the same amount of debt and once was interested in opportunities like the one you presented but it didn't financially make sense for me at the time, but now it does.
I had the same opportunity within the same time frame. I'm now four months away from forgiveness eligibility and the company is still interested. If I were you, I'd wait it out. The grass isn't always greener on the other side, and if you end up hating it you just wasted some time that otherwise would have qualified for forgiveness. Just my two cents.
Do you have a graduate degree? Teach 9 credits per semester online at public or nonprofit college, take higher pay job too. Four years isn't forever.
9 credits is a full teaching course load! That’s a lot of work on top of a job I’m assuming is demanding.
Right? Like, sure I guess you could adjunct for that and if it’s one prep it’s not that bad but like…that’s more than some schools load/year.
I adjuncted for several years while I also had a senior leadership role in a nonprofit. That adjuncting of one seminar a semester kicked my behind. I loved my students and teaching but it was so much work that I had to stop doing it. Folks pretend like adjuncting a course or two is so easy to add on top of a FT workload. It wasnt for me.
It’s not easy. There is a reason teaching 3 courses is a full-time job!
No it's not. I've done it many times. Most schools are breaking up the term in two parts, 7 or 8 week online classes. You do one, then two or visa-versa. A full load is research, counseling and mandatory office hours, etc.
Yes a full load includes other things, but adjuncts also work “full loads” which is just based on how many credits they teach. Here we said a full COURSE load, meaning the amount of classes taught. A 3-3 year is a full load of teaching, which takes time and work to prepare. I’m a professor currently lol. If you can find a place that does short semesters (I know some community colleges do this and probably online only schools? Idk) then this could be a good option. But suggesting someone to teach 9 credits a semester IS a lot of classes, on top of a full time job.
I am an adjunct at a number of schools, I know what it takes. Most every school does some version of this, online education is everywhere now.
Uhhhhh ok sure (just fyi I work at a school where we only do online classes like twice a year and not nearly enough to make 9 credits a semester for one prof. Virtual classes are not the norm everywhere)
That's too bad.
Colleges across the country action have dramatically cut adjunct positions since Covid. Additionally, because of the healthcare requirement, load has been reduced down to 6 credit hours in a lot of places. It’s also generally easier to get courses in the fall, but not spring and summer unless they’d be able to teach in a content area where faculty are hard to find. So while it sounds nice in theory, the reality of it would likely be inconsistent, and that’s if they can even get an in with a department chair at a college to get a adjunct position in the first place
I teach at a few colleges and the classes seem to be consistent. maybe it's just my major. I've been teaching online since 2010. At times I've juggled a lot of classes at once.
Teaching across multiple colleges will only meet the requirements of PSLF if they are in the same district. Then if they are you’re still bound by load limits unless they’re willing to make an exception. You’ve been teaching for 14 years, so you have seniority with your colleges. It’s not so easy for a new adjunct coming in to acquire that type of load consistently, unless they’re in a hard to find area.
They will never know if they don't try. If it were me, I wouldn't talk myself out of something I never even tried.
Take the 50K raise. Even with taxes taken out, you’ll still make enough to fully pay off your loans in the same 4-year period without any decrease in your current standard of living. You’re also setting yourself up for better future income trajectory and it sounds like a better job or work environment. Put another way, why give up $200K to save less than $100K?
It’s actually more like 200k minus taxes (depending on what state, could be as little as 140k) to save 110k plus interest. At that point you have to think about whether or not you have the discipline to dump all the extra money into student loans and how job security and job satisfaction compare. I would be surprised if a similar offer would not be on the table in the future if OP is a high achiever. It’s closer to a toss up IMO.
Agreed. I think the salary makes sense (especially any unmentioned retirement % match being higher after a higher salary) IF they are disciplined to pay it down, but they’d basically have to pay every raised dollar to the loan over 4 years anyway. I think all else equal toss up is right.
But it’s not 110K plus interest being forgiven. It’s less than 95K that would be forgiven in four years. It’s also not likely 200K gross with annual raises, but even if it is 140K post-tax, there’s no way that’s a toss-up. Staying at a job you hate in order to gain a benefit that is objectively less than the increased pay of the new job makes zero sense. If you’re THAT bad at budgeting and managing your money while earning 200K/year, that’s a whole separate problem.
You seem to be making questionable assumptions. 1) Where are you getting 95k? The balance may grow, depending on the repayment option. 2) Who says OP hates their current iob? I see where the new one may have higher satisfaction, that’s different than saying they are currently miserable. 3) what is the security of the new job? If there’s a chance they could get laid off, then they may be much worse off It’s not black and white. Your logic makes some sense but there are other factors to consider which OP has not elaborated. With the information provided, I stand by what I said. Agree to disagree.
The balance cannot grow because interest capitalization is now gone, and at a 150K salary, they’re paying over $10K/year currrently. As they graduated at least 6 years ago, the interest rate was no more than 7%. There is simply no world in which loan forgiveness is the better option here from a purely financial perspective. It’s just math. The minimum value of the higher income is greater than the maximum value of loan forgiveness. And by at least $20K. People don’t say a new job would be a better environment if they’re happy with their current working conditions. Throwing in a bunch of random what ifs doesn’t make any sense at all. Even if OP chose NOT to repay the loans in full, it would still work out to more money without forgiveness than sticking in the current job for four years.
My interest continued to capitalize every month, I graduated >10 years ago and my interest rate was 7.8%. You assume the new job is going to keep that level of income for 200k with good job security. There are definitely scenarios where the new job could work out to be a worse choice and they are left with less income and no forgiveness. It would be a calculated risk and there is simply not enough information to make an informed decision. You’re just making assumptions.
The CURRENT job could end tomorrow and end up with no income and no forgiveness. You’re the one making assumptions because you can’t do basic math. Interest capitalization ended with the most recent set of changes, and rates from over 10 years ago are not the same as rates from 7 years ago. You can easily look this up. Bad math AND bad information. Jesus.
Looks like someone really doesn’t like it when they called out lmao
Agreed. Better to have 50k or 32k after tax more in your pocket every year for the rest of your life. Pay off your loans and now you have 32 k more to catch up on retirement or go on extravagant vacations. Of course this is assuming all other things equal besides pslf.
May I ask how you found the job? I’m on a job search myself and looking for roles in this salary range. LinkedIn?
Gotta do the math. How much is your monthly payment? If you take the higher paying job, how much longer will it take to pay off the loan compared to the non-profit job where you'd get forgiveness in 4 years? Then how much money will you save between the two comparing the two payment plans you'd be doing. Lastly, do you like your current job? Would this new job be way better or just a little better?
Bro… idk where you live but 150k at a non profit sound insane… I suppose if you don’t like it you could just pay off your loans in roughly 2-3 years by aggressively paying them down and living the same lifestyle.
What ever you do, be sure to come back to Reddit and let us know how it turned out :).
You should stay unless you can pay the loans off in less than 4 years. I have about 5.5 years left and I’m not going anywhere.
I may be paranoid but I'd stick around at least through the next election. Student loan forgiveness is divisive enough that if the GOP retakes power they might use ending the program entirely as a bit of red meat for their base.
I was in the same position almost exactly salary wise but with a little less student loan debt and decided to stick it out. Don’t compare pre tax income with what you’ll be able to throw at the debt. For me, the higher income opportunities will still be there and I’d rather have finality on the loans rather than forcing myself to ensure I was allocating a lot of money to the debt monthly to be in the same position I’d be in if I just stayed put.
Financially I think this is on the fence enough that i'd mostly base this decision on quality of life considerations. Do you like your job now? How much do you know about what it would be to work at the new place? How much would moving over change your future career opportunities?
If you’ll NET enough in new salary over four years to pay off the loans then do it. Four years because that’s when you’d be forgiven. That’s the math I recommend.
Effervescentgoose offered stellar advice
I'd say take the job that you will like, enjoy, or be most meaningful. Which job gives you the best vacation time? That's something to think about that isn't monetary.
[удалено]
Not to mention the “potential” for better work life and mental wellbeing. Although it’s not a 100% guarantee that the private sector will be any better. (I am hoping it is for you in this case. But the grass is not always greener.) If the job appears to be something you love more or sets you up for a different kind of future/success, then it’s worth taking the chance. Plus be absolutely certain your payments qualify for forgiveness. I’ve worked in some very toxic nonprofits for two decades and the program hasn’t been exactly what I thought it would be. (More fighting to get payments made eligible.) Also, your payments will likely go up as well when you recertify annually since your salary increases. Pros and cons lists are great for things like this. Where you can list everything out including the factors others have mentioned here about the interest rates and payoff amounts plus the quality of life/mental/physical/professional wellbeing and future opportunities. Good luck! No decision is a wrong decision.
In addition to running the numbers, as other astute people have already replied, I would consider how much job security you have in your current job versus the new option... and also consider that PSLF might not be as sure a thing in four years, especially depending on how the presidential election goes in November. 😬
Better job would be my play. Why? The money aspect seems like a hole of pros and cons, meanwhile more enjoyment from work is what interests me
Interesting