Any advice is appreciated!
I have about 100k in loans from school. All unsubsidized except 5k subsidized with interest ranging from 5-8% (average is 6.7%)
I started working as a teacher this year but I do not know how long I will continue with this career.
I don’t know if I should apply for PSLF, pay lowest total over time, pay off as soon as possible, or what. I am very new to this loan payoff process.
Why is my total higher if I choose to pay more per month/pay off my loan as soon as possible? It becomes almost 150k. ?
I wish I could pay it off as soon as possible but I would be paying an additional 50k which doesn’t seem like a good idea. I just don’t like the idea of paying for my loans over 10-20 years
Please be kind 😞
Posted by qqtubs
2 Comments
Depends on how much you make but I would probably go for pslf. Depends, if you have to pay 500 / mo ie that would be 6k / year so 60k / 10 years, interest and principle. You would be looking at ~60k of free money in pslf. If you get a better career and make an extra 100k in that same timeframe, and give you experience in a more lucrative career, then it’s better to pay it off
[https://www.studentloanplanner.com/public-service-loan-forgiveness-pslf-calculator/](https://www.studentloanplanner.com/public-service-loan-forgiveness-pslf-calculator/)
Not sure your AGI but RAP with PSLF will probably be a good route to look at. Just invest the difference from the standard plan payment and you will have a solid start to retirement.