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Student Loan ideas/help?

Started by jamesbenz21, June 15, 2016, 08:26:38 pm

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jamesbenz21

My names james, I am an automotive technician for mercedes benz, i have about 30k in school loans from a technical institute. i have been on a IBR plan for about 50$ a month. It ended and my payments are gonna be about 250.. I qualify for IBR for 0$.. what would be the best way to go about? Whats the difference between going for the IBR and 0 and still doing 250 a month, or would it be better to just pay the 250 without being on the IBR plan? im just looking for ideas to make this road to being debt free easy.

TheCollegeInvestor

What do you mean it ended? IBR doesn't end, but you have to re-certify your income each year. If you don't, your payments jump back up.

I highly recommend sticking with whatever payment plan you can afford. If you can only afford IBR, stay on it. If you can afford the standard plan, do that, because you'll be out of debt much sooner.

jamesbenz21

what if i were to do the IBR for 0$ and still made my original payment of 250? or is that basically just being off of IBR.. and correct i didnt renew yet, im still checking options before they capitalize on my money..

TheCollegeInvestor

You can definitely do that - there's no harm in ever paying more. The real question is, can you afford it? IBR bases your payment on 15% of your discretionary income above the poverty line. If you can somehow make a $250 payment, you're spending almost all of your money...