I've been ignorning my student loans for a while now, but I recently got an income high enough that I can start accelerating my repayment. I currently have an array of loans from both undergrad and law school, with interest rates ranging from 3.5% to 7.5%. They've been on forebearance for a while now, so they've all accrued some unpaid interest. I have two questions:
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Am I correct that any unpaid interest will capitalize at the end of the forebearance period?
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Is it better to pay off as much of that interest as possible before it capitalizes, or to put all the same money into paying down the principal on the single highest loan?
My undergraduate degree is in physics, so I'll understand any math you use in your answer. It's just been too long since I've thought about a problem like this for me to know how to set up my variables.
Thank you!
Is it better to pay off remaining interest across several loans before it capitalizes, or focus on paying principal on the loan with the highest rate?
byu/StrivingToBeAurelian inStudentLoans
Posted by StrivingToBeAurelian
1 Comment
Avoid capitalization at all costs first.