IBR and paying higher percentage loans

[gobruins]

Advertisement - Members don't see this ad

Is this possible under IBR:

1. apply for IBR -> get lower monthly payments
2. Pay the same amount I would have without IBR (if I'm guessing the loan forgiveness after 25 years won't be around in 25 years) but since I'm now technically paying extra per month, I could direct that "extra amount" be applied towards my higher percentage loans.

I think over the long term, this would save quite a bit since if I paid normally, the money would be spread out over the lower interest rate loans.

 

[RangerBob]

Is this possible under IBR:

1. apply for IBR -> get lower monthly payments
2. Pay the same amount I would have without IBR (if I'm guessing the loan forgiveness after 25 years won't be around in 25 years) but since I'm now technically paying extra per month, I could direct that "extra amount" be applied towards my higher percentage loans.

I think over the long term, this would save quite a bit since if I paid normally, the money would be spread out over the lower interest rate loans.

I know with private lenders you can specify which loans you want to apply any payment above the minimum to. I assume you can do the same with Federal Loans, but the best way to find out would be to call FedLoan Servicing and ask them--unfortunately I don't know for sure as I'm fortunately not yet in repayment.

 

[dantt]

Is this possible under IBR:

1. apply for IBR -> get lower monthly payments
2. Pay the same amount I would have without IBR (if I'm guessing the loan forgiveness after 25 years won't be around in 25 years) but since I'm now technically paying extra per month, I could direct that "extra amount" be applied towards my higher percentage loans.

I think over the long term, this would save quite a bit since if I paid normally, the money would be spread out over the lower interest rate loans.

yes

 

[Igor4sugry]

I think you would have to write on your check the loan # to which the payment should be applied.