I’m currently on SAVE Forbearance, looking into changing plans. My goal has been to pay off these loans ASAP and pay the least in interest. I don’t believe RAP will be beneficial because of my income, and I want to have the lowest possible minimum payment to pay off higher interest loans first. Currently have about 95k left with the highest interest rate of 6% and lowest of 4.3%
I’m considering the Extended Graduated Repayment Plan because it’s the lowest payment around $400-$500. I’m concerned about the changing landscape of repayment plans and am wondering if this would be the best option if my goal isn’t forgiveness but just paying off as fast as possible. I’m wondering if anyone is in the same boat and has any insight to what else I should be considering before enrolling.
TIA
Extended Graduated Repayment and Avalanche method
byu/Guilty-Bowler9448 inStudentLoans
Posted by Guilty-Bowler9448
2 Comments
Yes, that’s exactly what I’m doing.
I’m on Extended Repayment because it gives me a super affordable payment, but I’m using the debt avalanche method to pay off the loans loooong before the schedule given. I’m actually on track to pay off $96K in a little over 2 years, based on debt avalanche.
Yes you can use it to have a low monthly payment and then throw the extra money at the loan with the highest interest rate.
You can ride out the forbearance as long as it lasts and keep paying towards your highest interest loan until you are forced to switch to something else.