Recent college grad....what to do with the debt...

[bluecabinet]

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So I'm a recent college grad...I will be applying for med school next year..

It has dawned on me that my grace period will end starting march of next year and I'm really getting worried about my financial situation as I've never been under this much of DEBT in my life..

So the total debt I owe for education is $24500. (Kinda scary to think that I'm so much in debt..)
Federal loan is about $19000, 5.25% interest, $110 monthly payment for 15 years. (I plan to refinance this with higher monthly payment later to save money on interest)
University loan are $2100 loan with no interest and $3300 loan with 5% interest (payment about $110 each for the total of $220 every quarter)

My cash reserve is about $12000.

My parents will be helping me pay off the bills since I'm currently unemployed, but I still feel bad that my parents will be paying the money..

What makes the most financial sense? Should I pay off the $3300 loan so at least I don't have to pay extra $110 every quarter?

Any input would be great... (it sucks to be in debt...🙁 )

 

[Lesley]

If you are still unemployed when your grace period ends come March 2012, can you apply for deferment or forbearance based on absence of a job? Since you plan on starting med school Fall 2013, if you can keep all your loans in deferment/forbearance until that time, you may not have any payments due until you graduate med school or possibly after residency. At that time you can pay all your federal loans and any accrued interest based on the IBR program. If you have taken out federal loans prior to 2008, you may not be eligible for the 10%/20 year newer IBR program, but you would be eligible for the 15%/25 year program. Look into the rules and how they apply to you regarding deferment and forbearance. It's worth a look. Maybe someone in your situation or a similar one at SDN can offer some more direct advice. Good Luck!