Background
Like the title says, I have $196k in student loans from college. All loans have an identical interest rate of 6.8% through Nelnet. Loans are broken down as follows:
Loan A: Stafford Subsidized. Outstanding balance: $8.8k
Loan B: Stafford Unsubsidized: Outstanding Balance: $43k
Loan C: Direct Subsidized: Outstanding Balance: $8.8k
Loan D: Direct Unsubsidized: Outstanding Balance: $50.6k
Loan E: Stafford Subsidized: Outstanding Balance: $8.8k
Loan F: Stafford Unsubsidized: Outstanding Balance: $45.5k
Loan G: Direct Subsidized: Outstanding Balance: $8.8k
Loan H: Direct unsubsidized: Outstanding Balance: $22.2k
The short version is that I was talking with my mom about my plans for paying off my loans, and how I was trying to pay it off in 4-6 years (I get a raise in the next 6 months, which will allow me to pay between $3k-$3.5k/month towards these). My grandma offered to loan me $50k at a 3% interest rate to help reduce the overall interest I'll pay over time.
Question I have the $50k sitting in my checking account at the moment. I know that if I just pay directly to nelnet it will be distributed across all my loans so that, roughly 25% of each will be paid off. However, what I don't understand is whether or not the type of loan (Stafford vs. Direct, Subsidized vs. Unsubsidized) makes any difference in terms of which I pay off. Do the larger debts benefit from being paid off faster here? Motivation isn't a particular issue here, the avalanche vs. snowball method doesn't really matter. I just can't find a clear answer about whether it makes any difference which of these I pay off rest.
tldr Don't know the difference between Stafford & Direct or between Subsidized and Unsubsidized once I'm in repayment. Can't determine if it matters mathematically which one I pay off.
Submitted January 28, 2017 at 11:24AM by studentloansarefun http://ift.tt/2jgFMEQ
