Federal PLUS loan repayment options - Why not extend to 25?

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bababooeybababooey
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Federal PLUS loan repayment options - Why not extend to 25?

Postby bababooeybababooey » Tue Feb 12, 2013 4:53 am

Hi everyone,

While reading all of these posts about the horrors of law school debt on the ten year repayment plan, I'm wondering why the extended 25 year repayment plan, which is offered for sub/unsub stafford loans and plus loans, isn't discussed as an option? I know you end up paying a hell of a lot more in interest, but if you don't land a biglaw job and you're making around 50k, why wouldn't you opt for this plan and have a much lower payment?

Am I missing something or is it just that most people would rather not pay more in interest?

Your responses are much appreciated...Thanks!

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dingbat
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Re: Federal PLUS loan repayment options - Why not extend to 25?

Postby dingbat » Tue Feb 12, 2013 8:46 am

It's absolutely possible, as is IBR, but do you really want to be repaying this shit for as long as you've been alive? When are you gonna save up to buy a house? For retirement? For your kiss to go to college? For a fucking vacation?

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togepi
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Re: Federal PLUS loan repayment options - Why not extend to 25?

Postby togepi » Tue Feb 12, 2013 8:49 am

dingbat wrote:It's absolutely possible, as is IBR, but do you really want to be repaying this shit for as long as you've been alive? When are you gonna save up to buy a house? For retirement? For your kiss to go to college? For a fucking vacation?


Aww.

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cinephile
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Re: Federal PLUS loan repayment options - Why not extend to 25?

Postby cinephile » Tue Feb 12, 2013 8:59 am

Look into the 25 year repayment plan. You're still paying an absurd amount each month. I think I looked at mine and I could be 2.5k for 10 years or 2k for 25 years. It's not like it's so much more affordable.

bababooeybababooey
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Joined: Tue Feb 12, 2013 12:09 am

Re: Federal PLUS loan repayment options - Why not extend to 25?

Postby bababooeybababooey » Tue Feb 12, 2013 3:14 pm

Thanks for the replies...

dingbat - yeah, that would suck

cinephile - I did, the more you owe, the lower the 25 year payment is compared to the 10 year, but still it might just be better to opt for the ten year...I was just trying to create a worst case scenario in my mind, since I'm most likely not getting into a t14 and maybe have a slight chance at a top 30 and already got into a top 50...biglaw prospects are grim for me, therefore a big salary is most likely not in my near future...


http://studentaid.ed.gov/repay-loans/un ... calculator

kdb
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Re: Federal PLUS loan repayment options - Why not extend to 25?

Postby kdb » Tue May 07, 2013 1:04 pm

I'm inclined to take the 25 year repayment plan but, like a lot of people, don't want/intend to spend the entire 25 years in repayment. I'm looking at it as a strategy to save more money than I maybe would under the 10 year plan. If you're taking a PLUS loan, I assume you'll also have an unsub. loan and maybe even a Perkins? With the 25 year plan, you can initially pay less on the lower-interest loans while working down the PLUS loan with larger monthly payments.

The 25 year plan gives you flexibility. I wouldn't recommend paying the bare minimum each month for 25 years (because don't you want to cry calculating how much extra interest you'll end up paying?), but some months you can pay more, some months you can pay less.

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nickb285
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Re: Federal PLUS loan repayment options - Why not extend to 25?

Postby nickb285 » Tue May 07, 2013 1:06 pm

I'd rather just take the 10 year plan with the option of (hopefully temporarily) using IBR.

M458
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Re: Federal PLUS loan repayment options - Why not extend to 25?

Postby M458 » Tue May 07, 2013 6:18 pm

Crazy that you could be a grandparent and still be paying off student loans. What has the tuition bubble come to?!

09042014
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Re: Federal PLUS loan repayment options - Why not extend to 25?

Postby 09042014 » Tue May 07, 2013 6:20 pm

IBR is better. PayE is way better.




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