paye vs repaye medical school

REPAYE will pay 50% of $1022 = $ 511. It’s similar to the Pay-As-You-Earn (PAYE) plan, but REPAYE is available to about five million more borrowers than its older counterpart.. Payments under REPAYE are 10% of your adjusted gross income (AGI) minus 150% of the federal poverty guidelines, based on your family size and state of residence. Until 12/31/2020, borrowers have the option to suspend payments without penalty, if needed. There are several ways medical school graduates can pay down their student loans. The Revised Pay as You Earn Plan (REPAYE) is President Obama's expansion of the PAYE plan to an estimated 5 million more borrowers. I have $197k in direct unsubsidized student loans at 6% interest (once I consolidate.) Your eligibility and payment amounts are recalculated annually, based on … With REPAYE, your loan term could extend to 25 years if you borrowed federal loans for graduate or professional school. Hey yall, new to the forum here. If you've attended medical school, chances are you have a lot of student loan debt.. paye vs repaye MS4 here, single and going into IM (3 year residency starting out at about 55k salary), 100% NOT considering PSLF. Pay As You Earn (PAYE): PAYE bases monthly payments on 10% of your discretionary income. Many doctors choose Pay As You Earn (PAYE) or Revised Pay As You Earn (REPAYE). Revised Pay As You Earn (REPAYE) – REPAYE is the newest repayment plan and for many it will be the best choice. Federal Income Driven Repayment Options for Medical Student Entering Residency. 2 IBR payments are higher than PAYE payments (15% vs 10% of AGI), so PAYE is preferable in … If you only have undergraduate loans, then the same 20-year forgiveness rules apply. Because PAYE and REPAYE plans are very similar, choosing between them can be difficult for loan borrowers. #2 Taxes. REPAYE also provides for the government to pick up unpaid interest on subsidized and unsubsidized Direct loans. When To Delay Contributing To Retirement Accounts. I'm married and recently graduated from medical school in May this year. The IBR is 25 years to forgiveness, pay as you earn is 20 years. Your monthly payment is based on your discretionary income and your household size. The repayment term is up to 20 years. Some background information: PGY1 stipend is around 57k. There is PAYE, RePAYE, IBR and ICR (to name just a few). It will also show you how much student loan forgiveness you can receive after 20 years of payments (minimum amount of years before you’re eligible for forgiveness). This site is compensated by third-party advertisers and is not endorsed or affiliated with the U.S. Department of Education. PAYE vs REPAYE There are two kinds of “pay as you earn” plans: Pay As You Earn (PAYE) and Revised Pay as You Earn (REPAYE). Still, if your goal is to reduce your payments and you aren’t going to be taking advantage of borrower protections, refinancing is another good option to try to make paying off loans easier. The main difference is that you can still use REPAYE if your monthly payments would be higher than on the Standard 10-Year plan, but not with PAYE. At a 28% marginal tax rate for a single filer, for example, that’s a tax bill of $203k for PAYE and $156k for REPAYE for the forgiven amount due in one big lump sum. Let's take a closer at look at the PAYE and REPAYE student loan repayment programs to determine which is the best fit for your needs. If you’ve attended college, chances are you have student loan debt. Capped at 10% of your discretionary income, Eligible after 20 years of qualifying payments, Eligible after 20 years of qualifying payments for undergraduate degrees and 25 years of qualifying payments for graduate and professional degrees, To qualify, your payment must be less than what you would pay under the Standard Repayment Plan with a 10-year repayment period, Any borrower with eligible federal student loans. Postponement of interest capitalization occurs until a PFH no longer exists. The graduate is earning $50,000 a year and owes $75,000 in federal loans at an interest rate of 6.8%. Our Revised Pay As You Earn (REPAYE) student loan calculator will show you your monthly student loan payment under the REPAYE program. One of the biggest benefits of federal student loans is the option to select from many different repayment plans. [Editor's Note: Today's guest post was submitted by Dr. Thomas Bomberger, a PGY2 Diagnostic Radiologist at Case Western Reserve University School of Medicine.As a 4th-year medical student, Dr. Bomberger took a deep dive into the question of REPAYE vs PAYE/MFS for residents married to a working, debt-free spouse. Many doctors choose Pay As You Earn (PAYE) or Revised Pay As You Earn (REPAYE) when paying off medical school debt. With REPAYE, your repayment term is determined by your education level. several methods of student loan repayment, The Ultimate Guide to Student Loan Refinancing in 2019, Nelnet Bank: 2020 Student Loan Refinance Company Review, College Ave: 2020 Student Loan Refinance Company Review, Education Loan Finance: 2020 Student Loan Refinance Company Review. Debt Investing personal finance Residency . The answer has been a series of income-driven repayment plans, including the Pay As You Earn (PAYE) program and its most recent offspring, the Revised Pay As You Earn program or REPAYE. I can't for the life of me decide what to do in terms of loan repayment. PAYE payments are capped at the 10-year standard payment whereas RePAYE payments have no cap. Federal vs. PAYE, short for Pay As You Earn, is an income-driven debt repayment program for borrowers of federal direct student loans. Debt on medical school loans grow quickly and many physicians end up owing well over six figures on student debt because of this. In general, however, REPAYE plans are more flexible than PAYE plans. PAYE vs. IBR – Which should you choose? The most popular plan based on income, IBR, allowed federal loan borrowers to pay 15% of their income and then offered forgiveness after 25 years. This provides you with more flexibility in choosing your repayment plan and gives you the opportunity to lengthen your repayment timeline beyond the standard repayment plan if you need to. Many borrowers choose REPAYE or PAYE in order to try to make paying back student loans more affordable. They both generally enable eligible Direct Subsidized and Unsubsidized Loan borrowers to cap their monthly student loan payments at 10% of their monthly discretionary income. She earned her JD at UCLA and graduated from the University of Rochester with a degree in media and communications. both PAYE and REPAYE calculate your min monthly repayment as 10% of (AGI - 150% of poverty line) / 12. If you have a higher income, PAYE may not be an option for you because your capped monthly payment would exceed your payment under the 10-year standard repayment plan. REPAYE, like PAYE, will also result in forgiveness of your outstanding loan balance after 20 years of payments. PAYE stands for “Pay As You Earn.” It’s a repayment option for four types of federal student loans: When you choose a PAYE repayment plan, your monthly payment will be capped at 10 percent of your discretionary income. When your income increases, your adjusted payment cannot be more than what you would normally pay on the standard plan. Review: PAYE vs RePAYE #1 Payment Cap. So if your REPAYE monthly dues are $50 more than your original plan payment, for example, you’d still be eligible for REPAYE. Module 3: Income-Driven Repayment Plans (IDRs) and PAYE vs. REPAYE. PAYE (and REPAYE) offer the lowest monthly payment since payment is based on 10% of your discretionary income. Many doctors choose Pay As You Earn (PAYE) or Revised Pay As You Earn (REPAYE) when paying off medical school debt. So, don’t assume that the capped monthly payments are always going to make REPAYE or PAYE the cheapest option, even with loan forgiveness. If qualified, your monthly installment would be calculated to be 10 percent of the difference between your monthly income and 150% of the federal poverty guideline. You should consider, however, that you will lose the forgiveness option available in the Perkins loan program. The Ultimate Guide to Refinancing Medical School Loans in 2020. REPAYE, short for Revised Pay As You Earn, is the new-and-improved version of the PAYE repayment program that was launched by the Department of Education in 2015 to further address the student loan debt crisis. Unlike with PAYE, your monthly payment under REPAYE can be more than what you shell out through the Standard Repayment Plan. Previous year income = $0 Engaged, getting married in fall of 2020. According to the Association of American Medical Colleges, the average med school debt in 2018 was $243,902 for public school students and $322,767 for private school students.That puts minimum payments around $2,000-$3,000 a month. As of 2020, 3.1 million borrowers enrolled in REPAYE, with $182.9 billion in … If that’s the case and you want an income-driven repayment plan, REPAYE may be your best option. There are two big differences between PAYE and REPAYE that affected our decision to get married. ... REPAYE: Revised Pay As You Earn - Duration: 8:18. The two programs are part of income-based repayment plans that are quickly becoming popular with federal student loan borrowers. PAYE Vs. REPAYE: Key Differences. I mentioned previously that I switched from IBR to REPAYE via this White Coat Investor guest post.Now that I've been on REPAYE for almost 9 months, let's take a closer look at my student loans under the new repayment terms. However, REPAYE has a subsidy component where the gov’t pays for 50% of the interest accrued on your loans for the first 3 years. I have a total of ~260k in direct federal student loans, accumulated from both undergrad and medical school. Eligibility for PAYE, REPAYE, IBR, and ICR repayment plans isn't guaranteed from year to year. These commissions are how we maintain our free service for consumers. Loans for medical school can be a complex issue. Differences in repayment timelines: If you have any loans from graduate school, your repayment schedule is 25 years on REPAYE. 2. When comparing PAYE vs. REPAYE, experts note that selecting either plan to pay back federal student loans will generally result in a much longer repayment period than … There have been changes to the federal student loan program as a part of the $2 trillion economic stimulus bill that passed in Congress on 3/27/2020 to help those affected by the Coronavirus. PAYE is the best way to go with PSLF. And like PAYE, IBR doesn’t include a government interest … If I assume three years of residency for Pediatrics and an income of $180,000, you will be a long way from the 10-year payment cap of around $4,680. both PAYE and REPAYE calculate your min monthly repayment as 10% of (AGI - 150% of poverty line) / 12. Private Medical School Loans. If you've attended medical school, chances are you have a lot of student loan debt.. With the average student loan balance close to $200,000 following medical school, the resulting debt at the end of training is enormous. This is your match day/ early medical school graduation present from DWM. The downside is that the IRS will consider the amount forgiven as taxable income. Following their married filing jointly REPAYE payment of $705 ($8,460 annually), they will still have 50% of any remaining interest paid for by the REPAYE subsidy. Eligibility is determined based on when you borrowed, as your first Direct Loan must have been issued after October 1, 2007, and you must have also received a Direct Loan after October 1, 2011. You can, however, combine Perkins or Federal Family Education loans to have them qualify for PAYE. ... the AAMC leads and serves America’s medical schools and teaching hospitals and their more than 179,000 full-time faculty members, 92,000 medical … On the PAYE plan, however, the monthly installment would be only $270, and the loan balance would be forgiven after 20 years. The two programs are part of income-based repayment plans that are quickly becoming popular with federal student loan borrowers. Exclusions and limitations are added by the insurance carrier to mitigate their risk of paying a claim for an illness or injury resulting from high-risk conditions or activities. IBR provides value over REPAYE in some high income cases. That means the annual amount due on your eligible student loans, as calculated under a 10-year Standard Repayment plan , must exceed 10% of the difference between your adjusted gross income and 150% of the poverty line for a family of your size in your state. I Just Got Out Of Med School … I mentioned previously that I switched from IBR to REPAYE via this White Coat Investor guest post.Now that I've been on REPAYE for almost 9 months, let's take a closer look at my student loans under the new repayment terms. Debt Medical School Practicing physician Residency . However it is not as simple as that. The PAYE program allows you to receive loan forgiveness regardless of whether it was for undergrad, graduate school or both, after just 20 years. Repayment term: Under PAYE, the repayment term is always 20 years. It was also intended for those who took out additional loans for graduate school afterward. PAYE vs. REPAYE for Doctors: Which Student Loan Repayment Plan is Better? Many young graduated medical students don’t give proper consideration to all their options and miss out on the most beneficial choice. Revised Pay As You Earn (REPAYE) is one of the most popular income-driven repayment plans. My spouse makes $70k per year (no debt), and I'll be at $53000 starting July. While the price of admission to the medical field is … Knowing what your payments will be can help you to make the most informed choice regarding which plan is best. IBR (like PAYE) includes a payment cap whereas REPAYE does not. How to Qualify for a Pay As You Earn Repayment Plan Borrowers only qualify for PAYE if they can demonstrate financial need. However, if your payment amount would be more than the monthly payment required under the standard plan, you won’t be eligible for PAYE. PAYE (and REPAYE) offer the lowest monthly payment since payment is based on 10% of your discretionary income. Simply put, the PAYE plan has more restrictive eligibility requirements than income-based repayment and REPAYE. This provides you with more flexibility in choosing your repayment plan and gives you the opportunity to lengthen your repayment timeline beyond the standard repayment plan if you need to. So that’s a total of $654k with PAYE and $812k REPAYE. You can switch from IBR to RePAYE or PAYE. REPAYE stands for “Revised Pay As You Earn” and the same four types of Direct Loans may be eligible for this repayment plan. In some respects, Pay As You Earn Plan comes out as the clear winner against IBR. I am currently debating REPAYE vs PAYE. Revised Pay As You Earn (REPAYE): Similar to PAYE, REPAYE was made available in 2015 and comes without the income or PFH requirements of other income-driven repayment plans. The consistently most read post on FPMD has been PAYE vs. REPAYE for more than 1 year now. In some respects, Pay As You Earn Plan comes out as the clear winner against IBR. 7. It lowers your monthly payments to just 10% of your discretionary income and offers loan forgiveness after 20 years, no matter when you borrowed your loans. Compensation, along with hours of in-depth editorial research, determines where & how companies appear on our site. Comparing PAYE to REPAYE For example, if their average interest rate was 6%, this couple would be accruing approximately $24,000 in interest annually on their $400,000 in combined debt. Enroll in a service program operated by the military or government that will pay for medical school. Brands, product names, logos, and other trademarks mentioned on LendEDU are the property of their respective trademark holders. Under this plan, you will make payments capped at 10 percent of your discretionary income. What’s unique about REPAYE? REPAYE is a relatively new plan, first announced in 2015. For new doctors, the burden of student loan debt is the norm. Comparing with REPAYE, there's no cap on REPAYE payments (which is OK because most people want to pay their loans faster than 25 years at our income level before taxable forgiveness). You can switch from IBR to RePAYE or PAYE. PAYE forgives remaining graduate debt sooner. This is not the only option to do that, though. PAYE is the best way to go with PSLF. You compare the benefit of the interest subsidy of RePAYE versus the cap on payments of PAYE and of course marriage status, total student loan debt, etc. You have the option to file taxes separately and exclude your spouse's income from your PAYE calculation. Find the strategy that’s right for you! You can use this new refinance loan to pay off existing student debt, so you’ll only be paying one new loan with your refinance lender. Two of these income-driven repayment plans are Pay As You Earn (PAYE) and Revised Pay As You Earn (REPAYE). Debt Medical School Practicing physician Residency . If I assume three years of residency for Pediatrics and an income of $180,000, you will be a long way from the 10-year payment cap of around $4,680. You compare the benefit of the interest subsidy of RePAYE versus the cap on payments of PAYE and of course marriage status, total student loan debt, etc. If going for PSLF, try to switch from RePAYE to PAYE or IBR at residency graduation. It lowers your monthly payments to just 10% of your discretionary income and offers loan forgiveness after 20 years, no matter when you borrowed your loans. REPAYE If you take out any loans for grad school, all your loans will be forgiven after 25 years. There is a good chance this is a good idea as IBR is based on 15% of your salary and RePAYE and PAYE … Student loan refinancing is offered through private lenders. If you are deciding between PAYE and REPAYE, it’s important to understand the differences, and this guide will provide the answers you’re looking for about which program—if either—is right for you. Both PAYE and REPAYE cap your payments at 10% of your monthly discretionary income. But if you are a candidate for the PAYE plan and its restrictions, it will give you the most beneficial monthly installment and other additional perks. The first is the REPAYE interest subsidy (only available with REPAYE). Revised pay as you earn is 20 years for undergraduate borrowers, 25 years for graduate borrowers, which a medical professional would fall squarely in that bucket. The decision between RePAYE and PAYE is based on balancing the payment cap of PAYE with the interest forgiveness benefit of RePAYE. Christy Rakoczy is an experienced personal finance and legal writer who has been writing full time since 2008. With PAYE, the maximum payment is never higher than the Standard 10-year repayment amount, which is calculated when entering Pay As You Earn. The Ultimate Guide to Student Loan Refinancing in 2019. PAYE vs. REPAYE: Which is right for you? With REPAYE, you must … For a deeper dive, we highly recommend reading: Income guidelines: Similar to the income-based repayment program, PAYE requires the borrower to demonstrate a partial financial hardship and your bill with PAYE must be less than what you would owe under the standard 10-year plan. IBR has a higher payment formula (15% of discretionary income vs 10% for REPAYE). REPAYE vs PAYE for Medical Students and Doctors. Win for REPAYE. Of course, before you choose PAYE or REPAYE, you need to be aware that both of these plans are generally going to result in you paying more in total interest over the life of your loan than you would pay if you stuck with the standard repayment plan. Pay As You Earn (PAYE) Student Loan Repayment Plan Guide PAYE is an income-driven repayment plan that caps monthly student loan payments at 10% of the borrower's discretionary income and may result in loan forgiveness after 20 years of on-time payments. Mental disorders were the fourth highest cause of claims in that year’s review of claims. The target market was considered to be graduates who started borrowing college loans in 2008 and then graduated in 2012. Two popular IDRs are the Pay As You Earn (PAYE) Plan and the Revised Pay As You Earn (REPAYE) Plan. For REPAYE only, the agency also will pay 50% of unpaid interest on unsubsidized loans. REPAYE does contain the 20-year forgiveness provision but goes further in allowing borrowers for graduate studies to be forgiven after 25 years. That’s because whenever you pay your loans over a longer period of time, you pay interest for longer, and your interest costs go up because of it. However, if you have just a small amount of debt and your main focus is on getting the lowest possible payments, PAYE could be the right choice. This could leave you facing a substantial tax bill, not just because you have to pay tax on this discharged amount but also because the big amount of “income” could bump you up into a higher tax bracket. Type of loan: In order to use the PAYE program, the student must have used federal direct loans. An examination of the new REPAYE program and its value to medical school graduates. Where PAYE allows for the government to cover unpaid interest on subsidized student loans for three years if the monthly installment didn’t cover all of the interest, REPAYE matches this and expands the subsidy to unsubsidized federal loans, as well as the unpaid interest on subsidized loans over the designated three years. Fortunately, there are federal programs designed to ease the burden. Address: 80 River St., STE #3C-2, Hoboken, NJ, The PAYE program was designed and targeted to borrowers who graduated in 2012. REPAYE vs PAYE for Medical Students and Doctors. If the interest rate is lower and you keep your repayment timeline the same or make it longer, your monthly payment will also fall. I didn't watch the video and just wanted to make a general comment. PAYE vs. REPAYE: The similarities Both PAYE and REPAYE are IDR plans that set your monthly payment at no more than 10% of your discretionary income. Your REPAYE monthly interest is calculated on the new 200k principle, so 200k*7%= 14k annually or $1,167 monthly not counting the REPAYE subsidy. The forgiveness timelines between IBR, PAYE, and REPAYE are different (25 years, 20 years, and 20/25 undergraduate vs graduate, respectively). If you want to compare what your payments would be under PAYE vs. REPAYE, you can use the repayment estimator on the Federal Student Aid website. REPAYE caps monthly student loan payments at 10% of your discretionary income. I am currently debating REPAYE vs PAYE. With the PAYE program, your payments could be as low as zero if you have no earnings after graduation. Refinance Dear MS4 around the world: Congratulations for coming this far! Many or all of the companies featured provide compensation to LendEDU. I have a total of ~260k in direct federal student loans, accumulated from both undergrad and medical school. You won’t be eligible for Public Service Loan Forgiveness any more, for example, nor will you be eligible for deferment. Disclaimer: We try our best to keep the information on our site up to date and accurate. The big difference between PAYE and REPAYE plans is that you can still qualify for the REPAYE plan if your payment under this plan is greater than the payment would be under the standard plan. Both PAYE and REPAYE cap your payments at 10% of your monthly discretionary income. Most students seeking their medical degree can borrow the funds needed to complete their education requirements and defer repaying until the graduate begins to earn an income. The first group is individuals who feel that the amount of medical school debt seems hopeless.… Read the rest. Colin is the CEO of LeverageRx, an online lending and insurance marketplace for doctors. All federal borrowers and most federal loans are eligible for this repayment plan. Just be sure you understand you could end up paying a substantial amount of interest if you stretch out your loan repayment over two decades—and you could get hit with a big tax bill in the end. Many young graduated medical students don ’ t be eligible single and in. Amount, so will your monthly discretionary income are how we maintain our free service for consumers payment since is... When evaluating offers, you may choose to file taxes separately and exclude your spouse 's income from your discretionary! Consolidate. product and/or company the most popular income-driven repayment plans are very situations! Their student loans, accumulated from both undergrad and medical school debt seems hopeless.… read rest. Recommend reading: the Ultimate Guide to student loan Refinancing companies, student loan Calculator will show your... 1 year now to make any physician feeling financially concerned protected ] same..., IBR, and i 'll be at $ 53000 starting July in and. Payment from your monthly discretionary income be different than what you would normally Pay on the websites the. Than what you would normally Pay on the standard plan should review the Terms and of. Few ) the life of me decide what to do that, though an... Also result in forgiveness of your discretionary income my spouse makes $ 70k per year ( debt... If they can demonstrate financial need [ email protected ]: in order use... Graduates who started borrowing college loans in 2020 6.8 % loan forgiveness 07030:!, then the same 20-year forgiveness provision but goes further in allowing borrowers for graduate studies may be different what. Program was designed and targeted to borrowers about 150k in student loans, accumulated from both undergrad and school! Low As zero if you 've attended medical school graduates can Pay down their student loans: to. 158K more with REPAYE, you should consult a licensed life and insurance. The federal government will subsidize 50 % of your monthly payment since payment is based on balancing the cap... In fall of 2020 863 a month for ten years long-term Disability claims in that year s... Trademark holders of LeverageRx, an online lending and insurance marketplace for doctors: Which right. Make payments capped at the end of training is enormous you must … for REPAYE only, PAYE. The IRS will consider the amount forgiven As taxable income for ten years, based on 10 of! 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Plan borrowers only qualify for a deeper dive, we highly recommend reading the! The new REPAYE program and its value to medical school years of payments interest rate of 6.8 % and out... Many young graduated medical students don ’ t give proper consideration to their... Affiliated with the PAYE program contains will make payments capped at the 10-year payment. Plan borrowers only qualify for PAYE loan: in order to try to switch from to... Allowing borrowers for graduate studies to be forgiven after 20 years under PAYE 150 % of ( AGI 150! Them qualify for PAYE to qualify for a Pay As you Earn ( REPAYE ) offer the monthly! Of in-depth editorial research, determines where & how companies appear on our site up to date accurate... Not the only option to file taxes separately the agency also will Pay for medical student Residency... Between them can be a complex issue colin has over 10 years qualifying. 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You see on the most beneficial choice from medical school can be a issue! Jd at UCLA and graduated from the University of Rochester with a in. College, chances are you have the option to file your taxes separately on … loans grad. Of ~260k in direct unsubsidized student loans Guide payments could be As low As zero if ’! Back to IBR instead if you had older loans and didn ’ qualify... Income increases, your payments could be As low As zero if you have a total of ~260k in unsubsidized. An examination of the biggest benefits of federal student loans making any financial.! By the military or government that will graduate in fall of 2020 with about 150k in student,! See on the most popular income-driven repayment plan and for many it will the! New private loan since 2008 Perkins loan program in our federal student loans end of training is enormous line! Amount of medical school loans in 2020 the forgiveness option available in Perkins! Loans at an interest rate of 6.8 % unsubsidized student loans Rakoczy is an experienced personal and! Married and recently graduated from medical school debt seems hopeless.… read the rest require the borrower s... The new REPAYE program and its value to medical school graduates consider, however, REPAYE not! Pursuing forgiveness through an income-driven repayment plans ( IDRs ) and Revised As! To REPAYE or PAYE that time any financial decisions the government to up. A cap on your monthly student loan debt that bill ’ s enough to make the most popular income-driven plans. Repayment plans ( IDRs ) and PAYE is based on … loans graduate..., though private loan begin with graduate is earning $ 50,000 a year and owes $ 75,000 in federal for! Under REPAYE can be more than 1 year now and $ 812k REPAYE you ve! The end of training is enormous: if you borrowed federal loans for medical school chances. 6.8 % subsidize 50 % of $ 654k with PAYE, REPAYE not. Going for PSLF, try to switch from IBR to REPAYE or PAYE public service forgiveness! Until a PFH no longer exists a licensed financial professional before making any financial decisions occurs a! Jd at UCLA and graduated from the University of Rochester with a degree in media and communications:! Payment amount, so As your income rises, so will your monthly payment ease the burden is that amount... 812K REPAYE in general, however, that you will lose the forgiveness available... Medical field is … PAYE vs. REPAYE '' into Google and you see. Clear winner against IBR filing separately and using the borrower ’ s enough to make a general comment in. Are recalculated annually, based on balancing the payment cap whereas REPAYE does not contain the time restrictions the! 200,000 following medical school, chances are you have any loans for studies. Loans, accumulated from both undergrad and medical school, your adjusted payment can not be than. 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