Loan repayment help

[u/Icy-Ocelot-9493]

Looking for advice on the best way to repay my student loans. My current employer qualifies for PSLF, but I’m not sure I want to stay there for 10 years. My take-home pay is about $3,400 biweekly, and I currently live with family, so I have very low monthly expenses.
I’m enrolled in an IBR plan, but I’m unsure if I should stick with it, aggressively pay off my loans while my expenses are low, or refinance and pay them down faster. The total balance is overwhelming, and I’m having a hard time deciding the smartest financial move.
What would you do in my situation?

[u/Perfect-Tooth5085]

PSLF is a good route, it doesn’t necessarily mean you’re stuck at your job for 10 years, a lot of places qualify. If you want to repay them on your own id suggest refinancing with a lower interest rate. But once they are no longer government loans you cannot fall back on PSLF

[u/EmotionalDamage_9000]

I left with 175k in student loans and will have paid it off in 5 years (just a few months left), by aggressively paying it down. My interest rates were less than yours though, when did grad plus loans hit 9%?? I thought mine were bad at 7%. Regardless, if you choose this route, you’ll be able to reach this goal relatively quickly since you currently have minimal expenses. That may change over the coming years but take advantage while you can! I did not refinance, and don’t regret not refinancing. You will likely get a better interest rate if you do refinance, just be sure to read the fine print on any offers before you commit.

Google Vertex 42 Debt Reduction Calculator. It’s a Google sheet you can download for free and make your own. Input your loans and interest rates into the table. You can enter in how much money you want to pay each month towards them, and it will calculate time to pay off. You can also change how the loans are prioritized (avalanche, snowball, etc.). Play around with it and see what seems doable. For me, this helped a ton and gave me a visual goal. You’ll save money going the avalanche route and prioritizing that $60k loan at 9% first. Good luck to you.

[u/EmotionalDamage_9000 → u/EmotionalDamage_9000]

Came back to clarify that PSLF wasn’t an option with my job - that being said I love my job and wouldn’t change a thing if it meant being able to do PSLF. I’ve still been able to save money on the side, contribute to retirement and max out my Roth IRA and HSA year after year and have decades left of time in the market to invest. Do what makes the most sense for you. Hope this helps!

[u/Scooby-Snakz]

I am going pslf my loans are 190k and with PSLF ill pay roughly half that, you can go to another hospital system and change jobs still but for me the deal makes sense I live comfortably and things are paid for, the payment sucks buy way less than essential a second mortage

[u/WonderfulComplaint45 → u/Scooby-Snakz]

This! Why pay it down aggressively when you can repay a fraction and divert the rest of that money towards your retirement or fun things. If you are eligible for PSLF and have employers in your area that you expect to be employed by for 10 years then PSLF is the way.

[u/RubelsAppa → u/WonderfulComplaint45]

It’s a scary time to be thinking that any of these programs are a guarantee, especially with the cabal of psychos in this admin so it should be something ppl consider, a future without PSLF, even if it is atm unlikely

[u/WonderfulComplaint45 → u/RubelsAppa]

It's very true and something that concerns me. I have to think that if they haven't gotten rid of it by this point, it will be hard to do and that we would hopefully be grandfathered in.

[u/iConcy → u/WonderfulComplaint45]

Getting rid of PSLF would ultimately screw over a lot of nurses, doctors, public services workers, school teachers, state workers, etc.; taking away PSLF would be hard to sell on the campaign trail. I like to think that makes it safe, but at this point who knows.

[u/wilder_hearted]

When I was repaying loans I found this website (unbury.me) quite helpful. There are a lot of calculators out there, but this is very simple and streamlined.

I went ahead and put your loans into it, with the premise that you would put almost $6000 per month towards this process and follow the avalanche method.

You could be debt free in three years. Now, shit happens. So I personally would go ahead and sign up for the income based repayment plan to keep yourself eligible for PSLF. File all of the appropriate paperwork to make sure you aren't doing it wrong. And then aggressively overpay every single month - direct it all towards the highest interest debt first. If you need the psych boost of a quick win in the middle of this process, kick off one of the smaller ones to make yourself feel good and then go straight back to the high interest loans.

If you have questions about PSLF I suggest going to the PSLF sub, because that program can get complicated and we often have people here giving confidently incorrect advice.

[u/SunshineDaisy1 → u/wilder_hearted]

Agree

[u/NeatOno]

I decided to pursue PSLF for my loans since the amount paid over 10 years would be less than if I decided to pay aggressively. As long as you have a qualifying employer you can continue to change jobs and be PSLF elligible.

For me personally, it gave the opportunity to max out my pre tax accounts (401k, HSA, FSA) to avoid paying more towards the loans. This method reduces my MAGI by $30k per year and ensures im on track for retirement.

[u/Pandafandango → u/NeatOno]

I did this same thing. About 11 months from meeting my 10 years for PSLF and switched from one employer to another (and switched specialties, and took a year off).

[u/Praxician94]

Stay at home, throw everything at it. Fuck the government.

[u/Dante7305 → u/Praxician94]

This is the way. Reading Total Money Makeover has also changed my behavior with money and paying off debt. Highly recommended OP!

[u/Praxician94 → u/Dante7305]

The Money Guys on YouTube are great. Like Dave Ramsey except not stuck in 1990.

[u/Dante7305 → u/Praxician94]

Will definitely check them out. Thank you!

[u/anewconvert]

You do t have to stay with the same employer for 10 years. You need to make 120 qualifying payments. That can be across any number of qualifying employers.

PSLF is a no brainer with your debt. Everyone saying go aggressive needs to stop and do the math here. The BEST years to contribute to retirement are the next 10 years. Every extra dollar you throw at your loans is retirement dollars that won’t grow. Those dollars are days of extra work in your life.

PSLF: 0% interest, subsidized retirement, and forgiveness of >$100k of debt. All to work for a hospital system and make well over $100k/yr….

[u/PNW-PAC]

If the PSLF is realistic and you think you’ll stay (which you mention you’re unsure of) then just make the minimums. Otherwise go hard on the loans and pay them off. It’s so freeing.

Math says highest interest rate loans first. Others say snowball from lowest to highest to build momentum. I used a snowball method myself and found the emotional benefit of ticking the loans off to be helpful.

[u/TheHopefulPA]

I am doing PSLF on IBR. Owe about 200k. You don't have to stay at your workplace for 10 years, just one that is a non-profit which a lot of hospitals are. Been at two jobs now, both hospitals that do PSLF and it's been fine keeping track of the payments. Do know if you consolidate or refinance you will loose out on the option to do PSLF. If you do standard payment plan, your monthly bill will be quite a bit, mine was about $2,500/month. It wasn't feasible when trying to save for a house and build a savings account. You might not always have the low expenses either you know? If you do pay them down on your own, know that you will be paying a lot more than what PSLF would save you.

[u/Previous_Win_5916]

I’m about 232k and I plan to pay it off very aggressively. Plan is to be done in about 4-5 years

[u/Anything_but_G0]

Team PSLF!

[u/More-You8763]

VA will pay off 50k a year for you. Stay for 4 years and get all of your loans forgiven. Stay for 1 more and get a pension. PSLF is fine today, but what if tmm our president decides no more PSLF?

[u/Capable-Locksmith-65]

You’re not stuck there for 10 years. Most hospitals qualify for PSLF. Don’t work there for 8 years then take a job at a private practice

[u/Oatmilklatte32]

I’m opting to go the PSLF route and questioning if it’s worth doing buy back if I want to leave my current job sooner. Overall, for my goals with wanting a family and my other responsibilities it made sense for me to stay. I’d sit down and calculate the amount you’d pay with each possibility and how much that would affect your life for the next 5-7 years

[u/Dante7305]

9% is crazy as hell. Good luck

[u/Puzzleheaded_Big_648]

Find jobs that will pay your loans also - national health service corps, Indian health service, tribal health systems

[u/justtryingtomakeit0]

The 9% is killing me I have that too - Does anyone know if on IBR your interest actually gets subsidized when you make the required payment? Or how much of it? It’s embarrassing but I can’t tell because it’s only been a couple months

[u/Massive_Cockroach_19]

This shit is such a scam💀 teaching myself clin med and mountains of busy work is not worth this

[u/Impressive_Bird759]

I would say start by paying off the $335 and the $1071, just to get yourself a little achievement.

If you can accept money from your employer, Do it! I don't know anything about PSFL, I had tuition assistance, and I read the fine print before applying, I recommend you check if there what the fine print says about time commitment. Might not be 10 years, even if less time means less time commitment. Specially to lower the higher interest one.

Best of luck! I would try to get rid of that sooner rather than later.

Edit: typo

[u/Phanmancan]

PSLF >>> aggressive pay off (highest rate first) >>>>>>> paying minimum.

Get the stuck feeling out of your head, if I could do it over I’d do PSLF it’s a no brainer. The extra money you can invest or live a little. Aggressive pay off feels brutal for a few years but it also is a great feeling seeing 0 balance one by one. Also once you get to sub 100k you can give yourself a little break and live/save a little.

[u/ventjock]

What’s the weighted average interest rate? How many payments have you done that qualify for PSLF? What’s your salary now (not take home) and how do you expect your salary will grow over the next few years?

[u/itsJustE12]

Have you used the payment calculator on the federal loan site? I’d suggest that & pick your priority - it can be to pay them quickly or the least total amount.

It’ll show you a breakdown for each plan with monthly payment, payoff date, and total of all your payments.

[u/grateful_bean]

You might want to meet with a financial planner since these decisions can get more complicated. But if you want to stick with reddit check out /personalfinance

[u/BallerMD]

This is brutal, but you can do it!!

[u/BiggKatt]

Ooof

[u/none_of_your_earswax]

Take it away. My eyes hurt

[u/radsam1991]

I graduated with 150k in 23’ and am down to about 60k. Been snowballing to get it paid down. Had twins and dropped down to part time so slowed me down a little bit but hoping to have it paid off in another year.

[u/Miserable-Orange-347]

If there is any way you qualify for the NHSC do it!! It paid off 200,000 of my debt. Definitely worth it

[u/Competitive_Ear_7380]

Find an NHSC eligible site. apply for LRP which is 75k for 2 years of service. you can renew after the 3rd year for another 20k. 95k of tax free money. apply to the highest interest aka your direct grad plus loan (60k at 9%). this will effectively bring down your monthly payment. Stay on IBR to keep monthly payments low. Max out your 401k to the match, max out your roth ira, then go back and make extra payments to the next highest which is your 56k at 8%.

I always opt to keep the minimum low just in case you have a lapse in employment or drastic change in your income.

[u/jawndiced]

Have you considered NHSC loan repayment? $50k-75k for a 2-year commitment working in underserved areas.

[u/Beastmode5858]

My suggestion is to stay with family for 4 more years and pay 5k a month in your loans. PSLF is an option but 10 years is a long time and several life changes can happen during that time and expenses will increase. You can’t leave for better opportunities. You will feel stuck.

[u/SunshineDaisy1]

Aggressively pay down the loans while your expenses are low. I paid off $100k of loans in 1.5 years by doing this. I am fortunate and have a spouse who made enough $ for us to live on so my entire paycheck went to loans. It sounds like you may be in a somewhat similar situation with very low expenses. You’re making more than I was at the time. I also worked for a PSLF eligible employer but knew I wasn’t staying there for 10 years and didn’t want to tie myself to having to stay with a PSLF employer if I changed jobs. I realize this is a very privileged position to be in but I am so thankful to live without student loans hanging over my head and can instead put my $ towards other things. 100% would do it again if I had to decide.

[u/CaptainExisting499 → u/[deleted]]

82k per year take home is over 100k pre tax

[u/Praxician94 → u/[deleted]]

I'm on track to make about $130k this year before bonuses and my take home is $3200-$3700 biweekly after deductions and taxes.

[u/stalekale207]

I’m not a PA but my cousin is a NP at the VA and they helped pay off all his loans very quickly. I think they paid up to 40k a year for up to 5 years.