Currently on save with interest accruing and haven’t made any payments. Interest is up $2800 since October. Have $112,000 in loans at 3-7%. Plan is to go forgiveness (if that ever happens). With all this interest accruing it’s making me a little nervous but i feel like if i start paying I’m just giving the government money for no reason as my loans won’t go down and no one knows what to do with loans right now. Who’s in a similar situations and staying on or who has started paying and why?
Appreciate any discussion!
Who’s staying on save and who has switched?
byu/pickle392 inStudentLoans
Posted by pickle392
15 Comments
I am staying on save because i am not on the forgiveness route. I am targeting the higher interest loans and paying those off first. My friends on the forgiveness route have moved to payee and bought back their years on save.
I’m debating whether to jump off and refi from 5.8% to 3.5%. I’m not in a position to get the debt forgiven and we’ve been consistently paying since interested started accruing again last year. Thinking about pulling the trigger since our incomes are relatively stable and we have a strong household income but still scary if anything happens or if refi rates keep going down
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Hopefully staying on until RAP becomes available, then minimum payments until either forgiveness or death. I considered making a one-time $2,500 payment towards interest at the end of December since I hate seeing it balloon but decided against it.
I’m staying on SAVE until forced off. I’ve crunched the numbers and the tax liability on the additional interest at forgiveness will be far less than how much I’d pay were I to make additional payments now, even interest-only payments.
If you plan on having your loans forgiven it may be more cost-effective to not pay until you have to. If you plan on paying your loans off, you should be making payments at least equal to the interest.
SAVE is dead. Unless you are waiting for RAP, you should consider moving to another IDR plan to start making qualifying payments towards forgiveness. Forbearance is not helping with that.
Interest doesn’t matter much if you actually get forgiveness, but it does add on to the forgiven debt that would eventually be forgiven and taxed (if you get IDR forgiveness, not PSLF)
Me!
I am broke af rn, not at a job in my field and probably won’t get into a PSLF job for atl anothet 1.5-2 years.
I’m also 3 months pregnant and just struggling on all fronts.
I calles the other day to see what my options were for switching to a diff plan and my payments via Mohela will be anywhere between $1500-$2300/month (which I absolutely cannot afford) is what the rep said. However the loan simulator online told me my payments would be more like $120/month? Idk wtf to believe or how the #s are so drastically different! When I asked the rep about this she just goes, “so why’d you call then if you did the tool online?”🤣. I was like, “to get more information and to find out what is accurate.” She said she didn’t know😅.
All my loans are federal unsub/sub, except 1 small private loan I am currently paying off right now with less than $4k on it at $70/month.
Like you, I just feel like if I start paying again now I will just be throwing money at my loans for nothing when potentially, *hopefully* one day some/all will be forgiven😅🤣😭.
I’m on administrative forbearance until Oct 2028, I believe? I had $178k in loan debt from both undergrad/gead school. Graduated in 2017. Made 6 qualifying payments at a PSLF job I had out of grad school until I switched jobs. Since then my loan debt has ballooned to $225k w/interest rates between 3%-7%.
I just can’t believe this is even real or legal to do to people. I probably will never break $200k in salary/ year. No family inheritance, no wealthy spouse, grew up in poverty.
Hoping for a miracle🤣🤍✨!!!
Which plan do you go on that counts towards forgiveness? I read conflicting things like if you pick the wrong one your qualifying payments go to zero.
I am looking for forgiveness or pay off, whichever is cheaper based upon my income. Some people are saying the payments are for 30 years now? Im afraid to pick the wrong plan.
I moved off SAVE to get on the 25 year extended payment plan. After my private student loans are done in 4 years I will attack it more aggressively. There was no way I was going to get forgiveness.
be aware that student loan forgiveness is once again taxable as of this year, so you need to start planning for a potential tax bill
I’m staying on as I’m paying my highest interest loan and not going for forgiveness.
I’d get off SAVE if I could… but my apps are stuck in limbo.
I have not switched yet because I’m finishing paying off my private loans. Have $11k left on them after starting with ~$50k 2 years ago, just trying to decide when to finally pay this last loan. Got ~$25k in federal loans.
I’m staying on until I get kicked off or I pay it off in March. I’m hoping that the March payoff comes before I get kicked off. I’m not going for forgiveness. If I was, I’d be doing whatever plan allows any payments to count.
Staying. I get more in the long run paying down my credit card debt and investing. By the time I have to start making payments, I won’t have any CC debt and will be able to cover them with what I make investing. After that it’s minimum payments until I’m in my 60s.