Hi yall! So I am applying for an Income-Driven Repayment Plan (IDR) through EdFincancial for my student loans. I'm currently working a temp part time for ~$15k/yr. (Low ik. But I'm living at home and need experience.)
After speaking to an agent, I found that I was eligible to IDR and in the application it's asking me to pick from these three repayment plans:
Income-Based Repayment (IBR) Plan
Monthly Payment: $0
Total to be Paid: $0
End of Term Date: July 2045
End of Payment Balance: $18, 222
Pay as you Earn (PAYE) Plan
Monthly Payment: $0
Total to be Paid: $0
End of Term Date: March 2046
End of Payment Balance: $18,651
Income-Contingent Repayment (ICR) Plan
Monthly Payment: $5
Total to be Paid: $10,239
End of Term Date: March 2051
End of Payment Balance: $10,454
And the Non IDR:
Standard Repayment Plan
Monthly Payment: $119
Total to be Paid: $12,266
End of Term Date: Oct 2034
End of Payment Balance: $0
Now, with the IDR they are placing my loans in processing forbearance till the plan kicks in and my paperwork goes through. Right now, my job is ending in a few weeks and I haven't been making enough these last few months to pay anything, so I am 7 payments behind on my two loans which is why I am applying for all this now. Ik I should've been more proactive but, I am trying to get on top of it now. Now I am actively applying to positions and grad school, and I am about to start up some food delivery and tutoring to make money. So I do intend to pay on the loans, even with the $0 payments bc I don't want the interest to get me, but I am confused about which payment plan will work best for me. For context, I currently owe:
Total balance: $10,258.41
Principle balance: $9,879.02
Outstanding Interest: $379.39
This is the total for my two loans which are:
Loan 1:
Current Balance: $6932.03
Interest: 4.99%
Type: Unsubsidized
Loan 2:
Current Balance: $3326.38
Interest: 2.75%
Type: Subsidized
If anyone has advice they could offer I would be grateful. Also, I do not intend on staying on these plans forever, a year at most, but I'm scared of the big end of plan numbers, and what that could mean for how the interest accumulates on the loan.
Help me understand what the best plan is for me
byu/GodWilling3898 inStudentLoans
Posted by GodWilling3898
1 Comment
I recommend using PAYE for now.
The new RAP plan will be available July 2026. RAP is probably a good idea for you. Your minimum payment would be about $10 on RAP and any monthly accrued interest not covered by your minimum payment would be waived. There would also be a matching principal payment of up to $50. These can be beneficial for you while you are figuring the rest out.
You can read about RAP here: [https://www.reddit.com/r/StudentLoans/s/lsHO2ct2JR](https://www.reddit.com/r/StudentLoans/s/lsHO2ct2JR)