Student Loan Repayment

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Topic Author
gazelle1991
Posts: 65
Joined: Thu Aug 03, 2017 11:20 am

Student Loan Repayment

Post by gazelle1991 » Thu Jan 10, 2019 4:25 pm

Can you make additional payments on REPAYE beyond the required monthly payment?

Here's our situation: My soon-to-be husband is currently paying <$500/month on REPAYE. Once we get married, the required payment will shoot up to $2,000+/month. That will take us 13 years to pay the loan balance off (~225K).

We would like to pay down the loan quicker but do like the safety net of the REPAYE program in case we lose our jobs, someone passing away or if the gov't decides to forgive the loans after a certain amount of time without it being taxable. We would like the payments to count for something.

Alternatively, we could get off the program, refinance and just pay off the loan as aggressively as we could. Not sure if we could get much lower than 6% rate at the moment. I think mortgage rate is hovering around 4%. However, that leaves us open to life circumstances so we probably will need to get a life insurance for him and then i am on the hook for the loan, etc. that might negate the lower rate.

What would you do? Can I stay on REPAYE but choose to pay extra on your loans beyond the 10% discretionary income?

Topic Author
gazelle1991
Posts: 65
Joined: Thu Aug 03, 2017 11:20 am

Re: Student Loan Repayment

Post by gazelle1991 » Tue Jan 15, 2019 11:42 am

Any guidance?

Yinks
Posts: 13
Joined: Fri Aug 10, 2018 1:07 am

Re: Student Loan Repayment

Post by Yinks » Tue Jan 15, 2019 11:49 am

Have you contacted REPAYE to ask them if early payment is allowed?

Loans should state in the fine print the policy. Check the fees section to see if early payment fees apply.

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