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Posted in Student Loans
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Question By
ndogg34

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To pay or not to pay (extra on my student loans), that is the question.
I have approximately $70k in student loans currently in repayment. I am on an income based repayment plan, paying $56/mo. As a civil servant, after 10 years of payments, the remainder of my loans will be forgiven, so assuming the numbers don't change too much, I'll be paying around $7k overall.

Here's my concern... With my interest only payments, my balance is increasing by $130/mo, and I'm not sure how much of an impact that will have on my credit score (currently 630). Is it enough to warrant paying an additional $15k on the loan?

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NO!!!

As a civil servant, you are being given an opportunity most students don't get and that is being able to get the majority of student loans cancelled after a specified ( in your case, 10 years) period of civil service.  This is in recognition of the fact that you are not being paid "the prevailing wage" for your skills in the civil service job.

Just continue paying the $56/mo as required under the income based repayment plan and celebrate when the loans are cancelled after your 10 years service. Put the "extra" money you were talking about in a savings account for that special something you might want, or towards retirement.

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