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Lump Sum Payment on Student Loans?
Posted on 2/11/19 at 3:52 pm
Posted on 2/11/19 at 3:52 pm
I owe 57,000 in federal loans at 6.8%
I have been in the Public Student Loan Forgiveness program for approximately 3 years.
I am getting married, and once our incomes are combined my repayments go from 280 a month to the full rate of 700 a month. I've essentially been making interest only, or less, payments every month.
I am not sure where my next career move will take me (public or private sector).
I have some savings that I could put toward a lump sum payment to start paying this down and make monthly payments more manageable once we get married. If I put 15k down they appear to go to about 500 a month, more from there.
I am considering putting a lump sum down so that we 1) pay less interest over time and 2) hopefully pay them off faster.
I feel like I am missing something here. Would this be wise?

I have been in the Public Student Loan Forgiveness program for approximately 3 years.
I am getting married, and once our incomes are combined my repayments go from 280 a month to the full rate of 700 a month. I've essentially been making interest only, or less, payments every month.
I am not sure where my next career move will take me (public or private sector).
I have some savings that I could put toward a lump sum payment to start paying this down and make monthly payments more manageable once we get married. If I put 15k down they appear to go to about 500 a month, more from there.
I am considering putting a lump sum down so that we 1) pay less interest over time and 2) hopefully pay them off faster.
I feel like I am missing something here. Would this be wise?
Posted on 2/11/19 at 4:24 pm to coalbe923
Don't make a large payment if trying to do loan forgiveness. That would be a waste of money. You and your spouse can file mfs to keep your repayments based on only your income.
Posted on 2/11/19 at 7:27 pm to coalbe923
We owed a sizable amount, ParentPlus loan, paid it off just to be safe (debt free, didn't wish to compromise retirement). Part of me is pleased, part of me is ticked. College was a private, for profit
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