Hi everyone! I was wondering if I could get some guidance on this subject.
I recently graduated from PT school and I took my student loan out through Aidvantage. I am doing the IDRP (Income Driven Repayment Plan). From my understanding, if I make my scheduled payments for the next 20-25 years, the rest of my debt will be forgiven. However, my loan payments for start until January, 2027, but I still have interest accruing. I tried to contact Aidvantage for guidance, but they told me they weren’t able to provide that.
My question is, if my debt will be forgiven and my loan repayment doesn’t start until 2027, should I start making payments now? Even if it just covers my interest? I don’t know if it’s smart to make payments or not if I could be eventually forgiven in the future.
Thanks for any and all help!!
Posted by KeeksIsNew
1 Comment
No do not start paying, forgiveness is based on “qualifying monthly payments” that is when repayment begins (Jan 2027). Since you are pursuing forgiveness the interest shouldn’t matter, paying now would do nothing, and your monthly payment on IDR isn’t based on the loan amount but your tax info. Save up money aggressively until January 2027, build your savings, your cushion and investments. And then start paying, maybe one day you’ll make enough money to pay it off entirely, but your goal right now is to get on your feet and pursue forgiveness.