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Lump Sum Payment on Student Loans?

Posted on 2/11/19 at 3:52 pm
Posted by coalbe923
New Orleans
Member since Feb 2011
139 posts
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?

Posted by tigeralum06
Member since Oct 2007
2890 posts
Posted on 2/11/19 at 4:24 pm to
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 by wfallstiger
Wichita Falls, Texas
Member since Jun 2006
14713 posts
Posted on 2/11/19 at 7:27 pm to
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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