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Overall I have around 170K in student loans, one year serviced by THE who sold to Great Lakes, and the rest by Federal Direct Loans and am planning on entering IBR during residency. All loans are at 6.8%. I wanted to run this by you all and see if my plan makes sense and if I'm missing something.
After learning the ins and outs of IBR, it seems that our Stafford subsidized loans will still be subsidized under IBR after sending payments. The amount subsidized would be the total amount of accrued interest minus the amount that we pay. So if I pay more, then I just lose my subsidy right?
Would it make more sense then to do 2 consolidations? One for all the subsidized loans and one for all the unsubsidized loans? I would just make the minimum IBR payments for the subsidized loans so I wouldn't lose my subsidy. For the unsubsidized loans, I could have the option of paying more than the minimum if I have extra money in my budget.
Has anyone done this?
Edit: I just saw the other thread which states that you can specify where extra payments go, and then 1-2 weeks later after direct loans fills out a form, your payment gets reapplied in the manner you asked for. Sounds like a major pain in the A $ $, and frankly I don't want to have to check all the time to make sure it was applied properly. Would these consolidations make it easier to keep track of or would I still have to specify how to apply the payments since both consolidations would be direct consolidation loans?
After learning the ins and outs of IBR, it seems that our Stafford subsidized loans will still be subsidized under IBR after sending payments. The amount subsidized would be the total amount of accrued interest minus the amount that we pay. So if I pay more, then I just lose my subsidy right?
Would it make more sense then to do 2 consolidations? One for all the subsidized loans and one for all the unsubsidized loans? I would just make the minimum IBR payments for the subsidized loans so I wouldn't lose my subsidy. For the unsubsidized loans, I could have the option of paying more than the minimum if I have extra money in my budget.
Has anyone done this?
Edit: I just saw the other thread which states that you can specify where extra payments go, and then 1-2 weeks later after direct loans fills out a form, your payment gets reapplied in the manner you asked for. Sounds like a major pain in the A $ $, and frankly I don't want to have to check all the time to make sure it was applied properly. Would these consolidations make it easier to keep track of or would I still have to specify how to apply the payments since both consolidations would be direct consolidation loans?
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