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Posted in Student Loans
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Question By
I814K3

19 Contributions
2 People Helped
What order should I pay off my Student Loans?
I am trying to eliminate debt off my credit report so I can be approved for a Mortgage. I already have a secured credit card I am using. This question is in relation to which route would be the most beneficial. Please do not mention savings or retirement funds, those are not the issue. My credit scores are 635, 601, and 587. I have 8 different student loans. A private loan at about $10200, a Federal Subsidized Loan at $11,000, a Federal Unsubsidized Loan at $13,000, a Federal Subsidized Loan at $4523, and 2 Federal Subsidized Loans at $2760. The last 2 unsubsidized loans will be paid off by the end of July. I currently pay $100 a week on the private loan (has the highest interest rate). At the end of July the private loan should have about $9000 remaining.

If I am able to pay at least $350 per week towards something, which should I do?

A.) Knock out as many of the small loans as possible first and work my way up to the big ones.

B.) Focus on the Private loan and have it paid off by December.

C.) Boost my savings by about $8500.

Please note, the loans will remain in deferment until May of 2016. My current savings is alright but not enough to cover a down payment on a house. Granted I would be a 1st time buyer and qualify for many programs to assist with a down payment.

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