I am finally out of school and it is time to pay my federal loans back, but I don't know what route to go.
My loans are about $22,400.
Loan interest rates are 2.75 – 4.99%
I make $60,000 a year.
My standard payment would be $233 a month.
IBR would be $21 a month.
Now we could technically afford the standard payment with my partners income (same as mine) and my income, but on top of rent, daily living expenses, and putting our kid in daycare, we are left with around $500 a month, which would be our only emergency/savings money.
I am torn, as we could technically do the standard payment and just get the loan over with, but I would feel more comfortable with a little more cushion, especially as brand new parents.
New to loan repayment- What plan do I go with?
byu/Beneficial-Inside-92 inStudentLoans
Posted by Beneficial-Inside-92
2 Comments
Of the 2 choices, standard is probably the cheapest route overall.
You could put yourself on IBR, guaranteeing the low monthly required payment, and pay more if/when you can. Let’s say you can afford $250 a month, so you pay $250 a month, but next month you can’t, it’s okay because you’re only required to pay $21.
Your balance is quite low, so reaching the years for income-based forgiveness may not even be possible, but at least having the months counted (and already being on a plan) can help in the future if/when you need the low payment.
Im in the same income boat with almost the same loan debt (21k)
When I lived at home I could easily pay $250 a month but now with a mortgage and bills, thats not happening, Lol.
I will likely have to do IBR for awhile until I can figure out a plan to tackle it. Thankfully I get large bonuses however I’ve just been focused on cushioning my savings while still on the SAVE plan.