The Student Loan Borrower Tax Rate Is Too Dang High

If you’re on an income-driven repayment plan, you might be paying a marginal tax rate that rivals (or exceeds) those in high-tax countries. We walk through exactly how that number gets built, showing how many borrowers effectively lose close to half of every additional dollar earned.

We get practical about how this impacts your investment strategy, spending habits, and even decisions like working less. I also break down why pre-tax savings accounts (and careful house/car choices) can buy you back weeks of life — and sanity.

Key moments:

(00:00) Why an income-driven borrower's tax rate rivals Sweden's

(04:44) How a $150K salary hits a 47.55% marginal tax rate

(08:51) Using dependent care FSAs and HSAs to effectively get “50% off”

(16:22) How driving a modest car or working less can radically impact your life after taxes

Resource mentioned:

Afford Anything podcast by Paula Pant

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