I just graduated from grad school and have $71,000 in student loan debt. I’m posting here because I have no idea what payment plan to choose or what is best for me and can’t find loan counselling? I have About $49,000 direct grad plus and the other 22,000 direct loan – unsubsidised. I have 45 days until my “grace period” is over and I have to start making payments. I started my job two months ago and I make around 85k/year and my salary will probably never be much higher than $100k. I was planning on putting 700-900/month towards the loans but I work in healthcare and am wondering if I should consider the public service loan forgiveness plan. I currently work at a non-profit hospital, but my concern is that there’s a good chance I transition to an industry/for profit company as I develop my career. In that case I may never hit the 120 payments to receive the loan forgiveness and then what?? If someone could weight in on whether or not I should consider the loan forgiveness plan (or if I’ll be screwed otherwise) and what payment plan I should do I would SO appreciate it.
No idea how to do this…
byu/Background-Mind5622 inStudentLoans
Posted by Background-Mind5622
2 Comments
PSLF is a good deal for many. Forgiveness happens after making 10 years of payments while working full time for a qualifed employer. Unlike for forgiveness via IDR, the forgiven amount isn’t taxed by the feds.
IDR plans determine your monthly payments based on AGI. You can lower your AGI by making HSA/FSA/401k/403b etc. contributions.
Student loans = simple interest. Retirement contributions = compound interest + potential free money from employer + tax benefits.
PAYE isn’t a long term option, but keeps your future options most open. The long term options are IBR and RAP. RAP isn’t available yet and leaving IBR is an interest capitalizing event.
If you aren’t sure you are staying with a PSLF eligible employer long term, take the first year or so after graduation to build up your emergency fund and retirement savings. Then reevalute.
Just pay them off as fast as you can. Smallest one like dave says first. Just get them gone. Im 10 years out going wtf every month. Wife and I started aeith 189 were at 90k now