But even at only part-time, childcare from the time they were born up until this year has been our #1 largest monthly expense – even outranking our rent/mortgage).I decided to do a little investigating with my student loans in their current repayment plan (we’re in income-driven repayment).I read all your comments, thought it over, and decided that ultimately you guys are right (you’re always right! I don’t want to feel the stress that the program could disappear or be discontinued and I’d be stuck with this boat-load of debt (even higher at that point, given the higher APR).
The plan is subject-to-change since it’s based on our income, but with things as-is, I figured out the “Paid in Full” date for each of my outstanding student loan balances.I have 7 loans in total, and their current “pain in full” dates range from December 2023 to August 2028!The loans eligible for consolidation are: subsidized (based on financial need) and unsubsidized Stafford Loans; Parent Loans for Undergraduate Students (PLUS); Supplemental Loans for Students (SLS); Perkins Loans; and Nursing Student, Health Professions Student, and Health Education Assistance loans.A borrower must be in the grace period (the six months after leaving school) or have begun repayment on each loan he wants to consolidate.But once he graduates and re-enters full-time employment we should really start making some headway.
If I look out another 7-ish years, well, all our personal debts (credit cards, student loans) should be gone and our mortgage will be low enough that we should be able to knock it out easily (we’re already in a 15-year fixed, as is, with 14 to go at this point). With a little luck and some hard work, by the time I’m 40 we’ll be totally DEBT-FREE and able to kick fully into savings-mode. - several loans with varying repayment terms and interest rates CAN be merged into a single loan; repayment CAN be extended up to thirty years - AND at a fixed monthly payment.The law permits a borrower to obtain a new consolidation loan if: - he has at least one outstanding eligible loan that was not included in the initial consolidation OR - consolidated loans then borrowed again under an eligible loan program. A consolidation loan repayment term can be up to 30 years.For more information on federal student loan repayment plans, visit gov/repay-loans.- Student loans and their consolidation are governed by the Higher Education Act of 1965 (HEA), governs student loans and their consolidation.- It clearly states what people who have borrowed money under various federal loan programs or from multiple sources CAN consolidate their loans after they leave school.Remember, the repayment plans discussed here are for federal loans only.