How to approach paying off 190K in Loans

[wolfpac]

Hello kind PA world,

I am currently a new PA graduate looking to make around $90-100K annually. Currently feeling very overwhelmed in regards to how I can pay off student loans. Currently considering PAYE. Would love and truly appreciate your advice, Thank you!

1. DIRECT UNSUB $23,859.94 at 6.21%
2. DIRECT UNSUB $34,199.82 at 5.84%
3. DIRECT UNSUB $31,874.30 at 5.31%
4. DIRECT GRAD $35,238.38 at 6.84%
5. DIRECT GRAD $13,599.11 at 6.84%
6. DIRECT GRAD $718.49 at 6.31 %
7. DIRECT GRAD $46,006.67 at 6.31%
8. DIRECT GRAD $1,559.47 at 6.31%
9. DIRECT GRAD $778.49 at 7.00%

TOTAL LOANS = $188,000

1. Is PAYE or repaye a good option?
2. When should I consider IRB vs Consolidation vs. Refinancing?
3. In the future, Do I need to work full time to qualify for PAYE?

[MCHAD]

I can’t recommend “The Total Money Makover” and “Financial Peace University” by Dave Ramsey highly enough.  There is no secret that is going to make it easier. Live on WAY less than you make and attack the debt like it will kill you if you don’t.  

Live like no one else so later you can live and give like no one else. 

Also be wary of refinancing.  Federal student loans are forgiven in the event of death or permanent disability.  If you refinance with a private company you very likely will lose that protection.  

[anewconvert]

FLPS 

 

PAYE and REPAYE will like cause your loan balance to increase over the first two or three years because of how your payment is calculated. Your first years payments are calculated using last years tax returns... when you were in your first year of PA school with no income. If you aren’t married (or filed separately if you are) your income was likely close to $0, which would mean your initial repayment would be incredibly low (or zero).  Your second year of payments will be based on your first year of working, which will likely only be a part of a full year worth of salary, so again, low. It’s not until year three that your monthly payments are based on a complete years salary. What that means is that your first year for sure, and probably year two, won’t meet the interest accumulated over the year, so you balance will grow. 

 

Now, if you are on FLPS then at year 10 your balance disappears, so that’s not a huge deal, but FLPS ties you to working for hospitals/not-for-profits and there is no guarantee that the orangutan in charge and his administration won’t just stop the program outright and now you’ve made your hole deeper......  I’m rolling those dice, but there is definitely no guarantee. To hedge I am saving the vast majority of the difference between my REPAYE and traditional monthly payments so if the government pulls the rug out I have a large sum to dump on it. 

[Boatswain2PA]

You have sold 3-10 years of your life (years of repaying this) in exchange for either an incredibly expensive couple of degrees or living pretty well while in college (or both).

I would a)  move to lowest cost of living area you can, b) find highest paying job you can, c) work like CRAZY to make as you can, d) live on beans & rice, drive an old hyundai, e) pay off >60k a year, f) refinance your loans to lower rate.

You can be out of debt in less than 4 years.

[DelusionalEnthusiasm]

I lived at home for 2 years. Kept a beater and put 85% of paycheck into paying loans off, and got a per diem.