I am a special education teacher with two bachelor degrees, a masters degree, and a lot of student loan debt. I am tired of spending almost $1K/month on student loan payments without seeing much dip in the total amount I owe, and am hoping someone here will offer advice I can use!
My current budget allows for monthly payments of $862.46, which I am disbursing between the following loans:
Private
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Sallie Mae Smart Option Student Loan, 8.75% interest rate,$10,040.80 current balance, $202.66/month payments, 07/27/2025 estimated payoff date
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Sallie Mae Smart Option Student Loan, 7.75% interest rate, $10,716.91 current balance, $314.37/month payments, 07/27/2023 estimated pay-off date
Federal
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Great Lakes Direct Unsubsidized Stafford Loan, 6.8% interest rate, $5,644.93 current balance
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Great Lakes Direct Unsubsidized Stafford Loan, 6.6% interest rate, $20,129.36 current balance
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Great Lakes Direct Subsidized Stafford Loan, 3.4% interest, $4,486.57 current balance
For my federal student loans combined: $30,260.86 current total unpaid principal, $345.43/month payments, 07/2030 estimated pay-off date
Additional Factors
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From September 2020-2021 and June 2020 onwards, I expect to have an additional $1,000/month in my budget due to anticipated changes in my partner's finances.
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In June 2022, I will be eligible for $17,500 reimbursement through the teacher loan forgiveness program, which I hope to be approved for. This can only apply to my Great Lakes (Direct Subsidized Loan, Direct Unsubsidized Loan, Subsidized Federal Stafford Loan, or Unsubsidized Federal Stafford Loan) student loans.
Questions
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Should I refinance my private loans? What protections do I lose or gain when refinancing? What refinancing companies would you recommend?
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Should I halt on refinancing my federal loans until my teacher loan forgiveness program is approved in 2022?
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How does refinancing impact my credit score and long-term potential to get a mortgage?
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When my budget expands, should I direct the extra $1,000/month towards paying off student loans quicker, establishing an emergency fund, or begin saving for a down payment?
Submitted May 02, 2020 at 07:14PM by temporary-human https://ift.tt/2zT6TPl
