Hi r/personalfinance, I was hoping for some advice.
I have a bachelor's degree in biology, graduated a year ago, and currently make $15/hour working as a research tech for a university, which qualifies me for PSLF. I am happy in my current job and to be honest, I have doubts about my ability to find something that pays significantly more with my skillset. I am already making more money than either of my parents so I think I am in a decent enough position for now.
I have approximately $30k in student loan debt, which is significantly less than most of my classmates had upon graduation, but I'd like to be rid of it in a way that minimizes wasteful excess on interest (so I don't end up paying an extra $20k to pay it off). I'm moving out on my own soon (and that is not negotiable, i have to move out because of interpersonal problems with my family) and will be responsible for all my own bills etc.
I am on an income-based repayment plan and my loan payments are very manageable (~$150/mo), but at the rate at which I'm paying them off I will never make any significant progress towards being debt-free. I've been paying for about a year and the principal balance hasn't gone down at all just because of interest accrued.
My question is this: Given my situation, would it be smarter to simply wait the ten years for the PSLF program to kick in, or should I try and maximize my income and pay them off as soon as I can because the amount is manageable? Some factors to consider:
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On my current income I will most likely not be able to make more than minimum payments.
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I'm not saying I want to work this job forever, but I'm happy with it right now to help me get my life started away from my family, and I'm not sure about my prospects getting into a different income bracket, so I'll probably be at $15/hour for the foreseeable future, at least 2-5 more years.
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Further schooling and extra debt is something I'd like to avoid until this is paid off.
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Given the current political climate in America do you think it is a safe bet to assume the PSLF will still be active in ten years? Is it likely if it's abolished older participants will be grandfathered in?
Thank you in advance for your advice.
Edit: And thanks linebreakbot
Submitted July 08, 2017 at 01:07PM by Lady_Groudon http://ift.tt/2tY61Ec
