Student Loan Q--What's wrong with this plan?

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Anonymous User
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Student Loan Q--What's wrong with this plan?

Postby Anonymous User » Mon Apr 06, 2015 8:41 am

Anon because of personal info...

I have 140K worth of student loan debt and a salary of 135K in a secondary market with a relatively low (well, relative to NYC, DC, LA etc.) COL.

I want to aggressively start paying off this debt asap. I was clerking last year so I've been on an IBR program and it's time to re-verify my eligibility for IBR.

My plan is to stay on IBR to keep my monthly debt-to-income ratio in a solid position (may be applying for a mortgage soon/car loan etc. soonish), while still making payments in excess of the required monthly payment (and even the required standard monthly payment).

Is there a downside to this re: penalties or the way that the "extra" will be allocated in terms of principal and interest?

Thanks in advance for any help.

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2014
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Re: Student Loan Q--What's wrong with this plan?

Postby 2014 » Mon Apr 06, 2015 8:49 am

Afaik there's not only no downside but it has the advantage of letting you target higher interest loans with your excess payments (unless you've consolidated)

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JenDarby
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Re: Student Loan Q--What's wrong with this plan?

Postby JenDarby » Mon Apr 06, 2015 1:15 pm

I recommend this thread for you as it discussesi loan repayment at length:

viewtopic.php?f=23&t=220025&start=950

dixiecupdrinking
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Re: Student Loan Q--What's wrong with this plan?

Postby dixiecupdrinking » Mon Apr 06, 2015 2:39 pm

I don't see any downside but I'm not sure you'll save a lot on monthly payments on IBR at that income level.

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JohannDeMann
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Re: Student Loan Q--What's wrong with this plan?

Postby JohannDeMann » Mon Apr 06, 2015 2:49 pm

dixiecupdrinking wrote:I don't see any downside but I'm not sure you'll save a lot on monthly payments on IBR at that income level.


purely speculating but i think your IBR monthly repayment may be about equal to your 10 year SoFi repayment. You should prolly refinance




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