So I just graduated from college, and have started to realize just how much student loans i have. In short, about 80k in Parent Plus Loans (6.8% interest) and 20k (4.5% interest) in federally subsidized student loans. I was fortunate enough to land a job which will pay me roughly 145k my first year (i got really lucky and landed a gig in high finance). Right now, I am wondering how I should structure my payment plan to get rid of all this debt as quick as possible. I will be living in NYC, so after taxes my take home income will be around 95k. I am planning on living rather cheaply, and will most likely be spending a maximum of $1500 a month on housing.
I had a few questions about paying off my loans. Should I re-finance the Parent Plus Loans to put them under my name? Or is it better for me to just sign on as a payer and make payments in lieu of my parents. Also which loans should I pay off first? Should I tackle the 20k loans or the 80k in parent plus? And beyond that, how much of my discretionary income should I use to pay off my loans? My initial plan was to basically pour all of my discretionary income into paying off my loans. However, that seems a bit too aggressive. I want to have some savings and I want to enjoy myself a bit.
I am completely lost on what the right approach should be. Most of my friends are in a similar boat and my parents don't have the best track record financially speaking. So I thought here would be the best place to ask. I really want to get rid of this debt, while still being able to enjoy my first few years out of college.
Any advice would be greatly appreciated!
Submitted July 28, 2018 at 10:50AM by MegExl https://ift.tt/2vbLY3T
