i have no idea what i’m doing so any advice is much appreciated.
i’m currently looking at $100K of federal student loans after 8 years of higher education (undergrad state school + grad at an expensive ivy)
just started my first full time job with a salary of 78K in a HCOL area. that’s about $4700 after tax and medical insurance. i have around $22K in savings. my monthly rent is $1500.
loans are as follows:
1 – direct – subsidized: $3,404, IR 3.45%
2 – direct – unsubsidized: $2,600, IR 3.45%
3 – direct – subsidized: $4,619, IR 4%
4 – direct – unsubsidized: $2,412, IR 4%
5 – direct – subsidized: $5,624, IR 3.5%
6 – direct – unsubsidized: $23,450, IR 4.2%
7 – direct – unsubsidized: $24,217, IR 5.5%
8 – direct – unsubsidized: $24,152, IR 6%
9 – direct – unsubsidized: $11,250, IR 7%
10 – direct – unsubsidized: $2,200, IR 7%
most of my undergraduate loans, which coincidentally are the lowest, were once upon a time eligible for forgiveness up to $18K thanks to pell grants i received in school, but not anymore… nevertheless, the general goal is to pay as little as possible to a balance that would potentially be forgiven anyway (depending on the admin, of course) currently, i’m on an income-contingent repayment plan with minimum monthly payments at $148. starting to wonder if the lowest possible contribution is the correct route, or if i should aim to target my higher interest rate loans so as to not drown in accrued interest. i don’t at all worry about paying a low minimum payment until it is eventually forgiven, but just want to consider all my options.
any and all advice is super helpful – thank you!!!!
Posted by kirstenmaya