My husband and I collectively have about $102k in student loan debt (currently on SAVE forbearance). Combined our net income is around $120k/year. I used the student aid simulator and in total we’d be paying about $600/month on an income based repayment plan. We are currently accumulating around $350/month in interest. Does it make sense to go hard and try to pay it off, or wait until we have to start making payments and then just do minimum until forgiveness? I’d love to hear what others are doing.
Try to pay off or wait for forgiveness?
byu/Mystic_Moss0 inStudentLoans
Posted by Mystic_Moss0
2 Comments
We don’t know your expenses or situation. Is your income likely to increase?
How long until forgiveness and is PSLF available to you? The calculator should have shown you what you will pay over the life of the payment plan and if standard IBR you would get hit with taxes on the part that is eventually forgiven.
At $2600/month you could pay it all off in a little less than 4 years. Though if my math is right your interest rate is around 4.12% so some would suggest just riding it out and put the money towards your retirement instead which would gain more than that.
Personally the thought of paying a loan off for 20-25 years ( if early in repayment and not PSLF) sounds terrible but each their own.