Anonymous User wrote:Yes I have multiple loans with multiple rates. Its about 10 different loans with rates from 5% to 7.6%. I'm extremely clueless about all this stuff and am just now getting into it and doing the research. So it's ok for me to do this one large 40k lump sum payment for now? I see people mentioning refinancing in this thread, is this not an option for federal loans?
Definitely don't consolidate. It's okay to pay the lump sum if it's what you want to do. Whether it's optimal or not is a different can of worms.
You can refinance federal loans.
Anonymous User wrote:Any downsides to our plan of paying it down as aggressively as possible? are there any considerations I should take into account?
It just depends on what you want. It may be more financially beneficial to refinance and pay it over a longer time because refi rates are fairly low right now, while taking money you would have paid towards the debt and investing it. You could do a similar plan with an income-based plan as well. Of course, refi risks losing federal protections such (which is primarily the flexibility to switch to an income-based plan should you either lose your job or take a much lower paying job). Even if you pay aggressively, you'd still save money by refinancing though that still comes with losing federal protections.
By paying it down aggressively you are foregoing other options (retirement investing, saving for a house down payment, etc). If that's what you want that's fine (I'm doing something similar), but it is a choice you're making by paying down debt aggressively.