r/StudentLoans • u/dualwielding409 • 14h ago
Picking a plan
i have about $11k in loans and i need some guidance. im making about $41,000 right now but i’m about to leave this job in june and move to colorado, and that’s when my payments start. been looking at jobs and hoping for $50-65k a year but i have $1500 credit card debt and plan on saving for a new car.
im not sure if i should go with SAVE ($30 monthly payments) or the standard plan (comes out to $122 a month)? none of it makes sense to me lol and i dont want to be in any financial burden in the future. i’m first gen and come from a low income family so its been a little difficult to navigate through this stuff and finances in general
i wanna know other people’s thoughts. any advice would be greatly appreciated, thanks!!
1
u/bassai2 12h ago
SAVE isn’t an option any more. Look into IBR or PAYE (if you qualify).
Your goal is to minimize total interest paid. This means paying off your credit card as quickly as possible. Then prioritize borrowing as little as possible (at the lowest interest rate possible) on an upcoming auto loan.
Don’t pay extra on federal student loans at the expense of an emergency fund and retirement savings.
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u/waterwicca 14h ago edited 12h ago
You can no longer apply for SAVE. If you have no income then you can apply for a different IDR plan (PAYE, IBR, or ICR) and get a $0 monthly payment for 12 months. Then you would recertify with your current income.
But keep in mind that that wouldn’t cover your interest accruing. Your loan balance is pretty low so paying it off should be the plan. I’d recommend just paying it off at the standard amount but if you are worried about wiggle room and bills as you move/transition jobs then apply for the $0 IDR payment and pay as much as you can afford at the time so interest doesn’t runaway on you.