I am one of the many with absurd student loan debt compared to annual salary. I was dumb, I know better now, and I am determined to get out of debt as fast as possible and want advice on best ways to do this. All of my loans are direct, unsubsidized and federal, and I plan to keep them federal for the protections offered so I have no interest in private consolidation at a lower interest rate. Here is the break down

    Annual Gross Salary: 62,400 to 78,000 (for at least the next three years).

    Student Loans all through Mohela:

    $23,377 @ 5.28%

    $23,147 @ 5.28%

    $8,022 @ 6.54%

    $16,010 @ 6.54%

    $15,799 @ 7.05%

    $5,736 @ 8.08%

    $14,968 @ 8.08%

    $7,281 @ 7.94

    Total Debt at 114,340 @ 6.47 average rate

    Monthly net is conservatively 4,000

    I have no one to blame but myself. I am married but file separately and my current standard monthly payment is just shy of 1300 dollars. PSLF is unfortunately not an option.

    My current course of action has been basically live off of one paycheck and put the other check towards the debt with the avalanche method, which is only possible because I split expenses with my partner. My question is would it be smarter to go on the PAYE plan to lower my monthly amount to better attack the higher interest loans or stay at the standard payment plan? I am fortunate to have hobbies and a lifestyle that is very low cost, so this is something I can sustainably do. All thoughts are appreciated!

    Paying down loans as fast as possible
    byu/Cautious-Fondant-892 inStudentLoans



    Posted by Cautious-Fondant-892

    3 Comments

    1. You’re not alone, I’m currently $213k at 3-6% (varies by loan though most are 5-6%) and my yearly salary is $60,000 gross though I’m 3 months from a raise hopefully into the 70s.

    2. smallcapconnoisseur on

      Given the debt to income ratio, have you considered just pursuing forgiveness instead? I understand it’s not pleasant to stay in debt that long but it may make more sense.

    3. WarmBoysenberries on

      Second the other commenters idea about considering forgiveness. Think about finding the lowest monthly payment and put aside ~200/month to save for the tax bomb

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