No credit card required
Browse credit cards from a variety of issuers to see if there's a better card for you.
Hi everyone!
I'm currently in school for my BA until next year (graduating spring 2019) and I plan on going straight into a Masters program in the fall so I will have my loans on deferment until somtime in 2021-2022 (6 months after I graduate from my Masters program). My question is I have around 13k in federal loans right now (Nelnet), zero lates, but they are accruing interest. At the end of school I will have around 45k-50k in loans total. I have the ability to pay off these loans while I'm in school, and plan on doing that.
I would just like your advice on what you suggest is the best way of going about it. Every month I have a surplus of 1.5-2k in extra cash after I pay all my other bills and fund my 401k. I can dedicate all of that to my loans if I want to. My loans are also my oldest accounts (almost 5 years old) and all my credit cards have been opened this year. Would it be in my best interest to pay off each loan at a time starting with the highest interest ones or just make a payment to each loan and pay them off over time? I want to improve my scores as they're low 600's right now and I'm worried that paying off the loans will hurt my credit age. I plan on buying a new car in the next two years (car is over 15 years old) and possibly applying for a mortgage as well as my parent's BK falls off next year and I know they want to buy a house again (long recession story, we lost our house). I'm not worried about being late or defaulting since I am in deferment for so long and these will be paid off by the time I'm out of school no matter what.
I appreciate your advice on this!
Thank you so much for your advice! I appreciate the thorough response. I plan on starting to tackle everything starting in May. I paid off all my other debts and have been working on improving my credit for the last six months. Sometimes it feels like I'm on the never ending hamster wheel of paying off debt lol. I can't wait to get everything paid off and actually be able to help my family and take some stress of them.
You're welcome! Good luck, hang in there, and stay the course -- You have much to look foward to because when you finally get through this -- it will be GLORIOUS! And the ability to help your fam will be the cherry on top...