Hi, I’ve been ignoring my loans for years. I’ll share the info I see on my nelnet now. Can someone help me understand what plan I’m currently under and if I’ll be transferring to the new RAP system? I’d also appreciate some advice on how others would focus on tackling this.
How do I know what my plan is? I have a fixed standard payment plan according to the website. Is there somewhere deeper to determine how to find out my range of years for the payments? Do I get to keep this plan or am I required to pick up RAP?
I work for a nonprofit hospital, which I believe would qualify for PSLF. From my understanding though, it would be best to aim for small payments and invest for the next 10 years to have them forgiven. On the flip side, I don’t believe I will be with this employer in that time frame AND I believe I can pay the entire amount in under 10 years. PSLF is probably not worth considering, right?
Here is my loan information.
Current Balance: $44,263.30
Unpaid Accrued Interest: $7,715.80 Loans: Standard Repayment
| Loan Group | Loan Type | Amount | Interest Rate |
|---|---|---|---|
| AA | Subsidized | $4,268.14 | 4.5% |
| AB | Unsubsidized | $10,997.90 | 6.8% |
| AC | Subsidized | $5,233.66 | 3.4% |
| AD | Unsubsidized | $3,448.63 | 6.8% |
| AE | Unsubsidized | $977.69 | 3.86% |
| AF | Subsidized | $3,379.29 | 3.86% |
| AG | Stafford Subsidized | $4,282.32 | 5.6% |
| AH | Stafford Unsubsidized | $972.98 | 6.8% |
| AI | Stafford Unsubsidized | $10,702.69 | 6.8% |
In terms of paying off loans, is it just as valuable to pay off group AH since it's a 6.8% interest, or is that same amount better spent to lower one of the other 6.8% interest loans?
Is it possible to defer these if I'm going back to school online in September? Is the avalanche method the best way to approach these, aiming to target my 6.8% loans first? Additionally, if they can be deferred, would you choose to target the 6.8% unsubsidized loans? Appreciate any feedback. Thanks!
Returning to School Loans After 10+ Years, Looking for Advice
byu/RoboboBobby inStudentLoans
Posted by RoboboBobby
1 Comment
Looking at your situation, the avalanche method definitely makes sense – hit those 6.8% loans first since they’re all costing you the same rate. Between the 6.8% loans, mathematically it doesn’t matter which one you tackle first, but I’d probably go for the smallest balance (AH at $973) just to get that psychological win of knocking one out completely.
For the deferment question – yeah, if you’re going back to school at least half-time, you can likely get an in-school deferment which would pause payments on most of those loans. The catch is that unsubsidized loans will keep accruing interest during deferment, so you’d want to at least pay the interest on those 6.8% unsubsidized loans if possible.
PSLF seems like a long shot if you’re not planning to stay at the nonprofit long-term, especially since you think you can knock these out in under 10 years anyway.