[Deidre]

Hello! I am going back and forth on which of my federal student loans to pay off first. These loans are from 2008-2012 and I was on the fixed payment plan to have them “paid off in 10 years”.

Funny, not funny, the balance barely budged.

I am currently back in school, paying this tuition with cash, and all loan payments are defferred intil Feb 2027.

My goal is to pay the government as little as possible in INTEREST, making each payment make the biggest effect on my overall balance.

I have 4 loans; 2 unsubsidized and 2 subsidized. The 2 subsidized loans are still accruing interest in deferment while the other 2 unsubsidized have not accruing interest while in deferment.

-Unsubsidized loan #1 has a $1950 balance with no accruing interest.

-Unsubsidized loan # 2 has a $2300 balance with no accruing interest.

-Subsidized loan #1 has a $3,200 balance and IS accruing interest, 3.4%. Let’s call is loan 3 for the sake of discussion.

-Subsidized loan #2 has a balance of $1,900 and IS accruing interest, 4.1%. Call this loan 4.

I was targeting loan 4 prior to deferment with extra payments to the principle.

Now that I’m in deferment, should I continue to focus on the ones accruing interest OR pay off the ones not accruing interest?

I make what used to be the required $203/month payments plus an extra $150/mo to the principle.

[Annie]

I don’t know the difference between subsidized and not, but on the surface I’d tackle #4 first. Then when it’s gone, every penny you were putting into that goes towards #3.

Then #2, lastly #1.

Go get ‘em!!!

[Megan]

Pay off the ones accruing interest, otherwise you will never be able pay them off.

The amount of interest they will accrue while deferred is insane.

[Shelley]

I think you have the subsidized and unsubsidized flipped. If you are enrolled at least half time, subsidized loans do NOT accrue interest.

If the goal is to pay the least interest, focus on the loan with the highest interest rate.

[Pat]

Pay off the ones who are charging you interest first.

[Cindy]

Basically you have 2 options pay the debt with the highest interest first, or pay the debt with the smallest debt.

And then continue paying off the next debt

[Connie]

If no payment is required until 2027… pay them off one at the time… beginning with the ones that are accruing interest right now… highest rate loan gets paid off first, then the next, and the next.

Pay as much as you possibly can every month.

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