Throwaway so as not to tie financial information to main account.
I graduated with $29,581.84 in debt in a package of subsidized and unsubsidized federal loans. Since graduating I've been employed full-time by my alma mater and have paid back $26,411.87 via monthly payments. I've paid a little over $8,000 altogether, but have only shrunk the balance by ~ $3,000. I'm returning to graduate school tuition-free due to my job, but my monthly pay will drop significantly as I'll be taxed as if my tuition costs were income. The interest will freeze on my subsidized loans, but not my unsubsidized loans. I will not have to make monthly payments on any of my loans until after I graduate.
A family member is giving me the contents of a 529 that they opened for me when I was born, and told me it's a little over $17k. I intend to apply it all to my debt, and need advice on how best to do so. My loans are as follows;
| Loan Balance | Sub/Unsub | Interest |
|---|---|---|
| $13,287.94 | Unsub | 6.55% |
| $6,734.47 | Unsub | 6.55% |
| $1,728.80 | Unsub | 3.61% |
| $4,660.66 | Sub | 3.61% |
My plan right now is to:
- Completely pay off $13k loan
- Pay off as much of $6k loan as possible with remainder of 529 gift
- Focus on eliminating remainder of $6k loan, followed by the $1.7k loan
- Ignore $4.6k loan until after I graduate, since it will not accrue interest
I'm wondering if there are any steps I should take differently, or better things that I could do with this money to help tackle my debt. I'm incredibly lucky to get this kind of a gift and I want it to be spent as effectively as possible! Thank you all in advance for your advice!
Submitted January 19, 2017 at 04:56PM by fuckyluckythrowaway http://ift.tt/2iYvKGB
