Extra payments in REPAYE

[fetorius]

---

Members do not see this ad.

For REPAYE, does anyone know if extra payments affect the interest subsidy? Any specifics for Great Lakes would be appreciated.

For instance, if my REPAYE is $50/month with $100 interest subsidized + $100 interest remaining (all made up #s), can I pay the $100 after making the $50 payment without penalty towards the subsidized interest amount? Thanks!

 

[SigmaFS]

The REPAYE interest subsidy is based on the required payment, not the actual payment. So, no, the additional payment will not affect the interest subsidy.

But, why make that additional payment, while in REPAYE, if interest is not capitalized? Maybe put that additional payment(s) in an interest bearing savings account and make a lump sum payment should you leave REPAYE.

 

[Student Loan Planner]

For REPAYE, does anyone know if extra payments affect the interest subsidy? Any specifics for Great Lakes would be appreciated.

For instance, if my REPAYE is $50/month with $100 interest subsidized + $100 interest remaining (all made up #s), can I pay the $100 after making the $50 payment without penalty towards the subsidized interest amount? Thanks!

Particularly if Public Service Loan Forgiveness is on the table. If it's not and you'll probably have to pay it down I don't mind the extra payments