Reply to How should I pay off $300k in student loans?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]We have $300,000 in grad school loans. Fed loans with interest rates between 5-8%. We are on an income drive plan currently which means we pay 10% of our discretionary income for 20 years and whatever is left over get forgive. The current monthly payment is $1600/month (although has been stopped because of COVID). I’m wondering if anyone on here can relate and has gotten rid of this burden what are your suggestions. And for those who don’t carry this weight, what are your thoughts? Should I try to make extra payments and pay it down quicker or should I invest in the market instead since most of it will be forgiven anyway? TIA[/quote]

Refinance that interest rate is ridiculous.[/quote]

Not a good idea if she's in some sort of forgiveness program.

And if it's PSLF, there is no tax hit.

I was forgiven $150k last year through the PSLF program, so it happens. [/quote]

OP said 20 years which isn't pslf.

One more thing to consider is that regular 20 year forgiveness comes with a tax burden. There is a temporary amnesty on It through 2025 but no guarantee that will become permanent.

If you are set on paying them on quickly, you may want to consider consolidation but you would lose out on any potential federal benefits that may come out like a chunk of money being forgiven. [/quote]

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