I apologize up front for the vomit of disjointed information I’m about to dump, but I just feel very lost and disappointed in myself for letting things get to the point they’re at right now.
The headline is that I have more than $209K in student loans. I take in $100K annually before insurance, 401(k) contributions, etc. I don’t really know anyone who has been in a similar situation, but I’m sure there are many, so I’m trying to get some guidance. I honestly have no clue what I should be doing. The earliest loan I have is from 2009. The most recent is 2014. To my understanding, forgiveness comes after 300 “payments” (which I guess includes the $0 monthly payments I’ve been making for years now) are made to the loan, although I don’t know of a way to track how many payments have been made on each one (at least through Nelnet). For some of the older ones, should I be leaving them up to forgiveness? I have never gone through any kind of consolidation. Would that just reset the timer on everything? Do people have any good recommendations for consolidation? Are there other routes I should be looking at. Should I stop contributing to my 401(k) at this point and just put everything toward aggressively paying the loans?
At any rate, thank you for listening. I don’t know if there are other questions I should be asking, but I have to start somewhere.
$209K and I feel like I’m drowning
byu/dnoxford inStudentLoans
Posted by dnoxford
1 Comment
Do not consolidate.
Keep staying on IDR and making payments. Do not go on the RAP plan, stay (or get on) IBR. Note that forbearance does not count for the IDR 300 payment counter, while $0 “payments” while you were in repayment (set to zero cause income was super low) do count.
Unless you have a high earning spouse, you will find it essentially impossible to pay off 2x loans vs your income. Forgiveness is your only realistic path.
Ever work at a nonprofit or for a govt by any chance?