Student Loans, experience?

Twilio TechBoiiii
Jun 18 8 Comments

For those of you who have/had student loans, what repayment approach did you take? Student loan forgiveness plans/income-driven repayment plans, or refinance/consolidation plans? Or did you just straight up try to pay it all off ASAP however/whenever you can?

For those who chose refinance, anyone have any experience with low interest rate lenders/companies like SoFi, Earnest, LaurelRoad, LendKey, Commonbond, etc?

Out of college I went with the lowest payment option possible (forgiveness plan), but I’m learning that might NOT have been a good move because it just tacks on considerable interest with the idea that in ~20 years whatever is still left will be wiped clean. Sounded decent, until I learned you’re still taxed on that big forgiveness chunk 🙄. Been out of college for many years now and higher payments are less of a problem, so now I’m looking at better options. Unless, maybe I don’t need to make a change?

Any insight appreciated!

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TOP 8 Comments
  • Bank of America hgzA53
    To start I’d recommend doing a refi to lower interest.

    Then as a second step I’d defer to taking the Dave Ramsey approach and being laser focused and paying off those loans and any other debt (minus your home) in a much shorten time frame (say 1-3 years). Check out his podcast / or google his 7 baby steps for more insight.
    Jun 18 1
    • Twilio TechBoiiii
      OP
      Thank you. I’ll look into this for sure.
      Jun 19
  • Microsoft gotme
    Refinance and/or debt approach overall is to look into the debt avalanche approach of paying as much as you can to the highest interest account and work your way down.
    Jun 18 1
    • Twilio TechBoiiii
      OP
      Good insight, thank you.
      Jun 19
  • Very low payments. In no rush to pay them off. And I’m pretty sure I won’t be worried about it in 20 years.
    Jun 18 3
    • Twilio TechBoiiii
      OP
      I thought this as well, and I figured it couldn’t hurt to just not think about it and pay it off very slowly and eventually it will go away. But then I thought… Do I really want this debt hanging over me for the next 20 to 25 years? When I’m buying a house, etc?
      Jun 19
    • It can actually work for you. Building up a long credit history. It’s actually docked a few people I know who paid of early because they didn’t have a huge credit history.
      Jun 20
    • Twilio APIs FTW
      Hmm yeah good point I suppose. Which leads back to why I’m torn.
      Jun 20