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Pay Down Loans?

Started by ldygoug, March 23, 2019, 06:15:30 am

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ldygoug

Hi there.  I have 8 loans totally over $200,000.  I just made my first loan payment via Nelnet.  I am signed up with IBR PAYE in order that I can afford the monthly payments, as they would have been almost 4 times what I am paying.  Because I am brand new to this, I am unsure of something that someone at Nelnet said to me, so here is my question: Should I even bother attempting to pay down a couple of the loans that have higher interest rates in light of the fact that I am on the IBR PAYE and am optimist that at the end of 20 years I will have the balance forgiven (and hopefully it will be tax-free) - ?  I am also afraid of how I will handle actually watching my balances go UP instead of down over the next 20 years, as the payments right now don't even cover all of the interest accruing...   :-\

TheCollegeInvestor

It's not a bad idea, but there are better ideas along the way:
- Use that extra money to eliminate any other debt you might have
- Make sure you get your full employer 401k match
- Contribute to an IRA every year
- Max your HSA each year

If you're doing those, then yea, put that extra money towards your loans.