yes, correct, they are all federal loans being managed by navient.
the repayment plan im on is one of the income based one, i believe. the full amount they suggested i pay (before doing any of the payment plans) was about 1100-1200 per month which would've been a bit hard so i applied and got one of the other plans to pay 557/month.
im not govt but my wife is. shes like 2 years into the 10 she needs for the rest to be forgiven. but id really like to pay off earlier than that. she doesnt necessarily want to work in public service for 8 more years, or, at least wants to have the option not to.
i absolutely expect to be making more and am hoping i can pay much more per month soon.
1% per year reduction would be 1600/year which is 125 per month.
2% reduction would be 250 per month less interest (3200 per year less interest).
my navient interest is 5.625%. i wonder how low i could go if i refi'd elsewhere. not sure how that works.
i guess another question im wondering is how navient is predatory, if they are as ive been reading. is the way they capitalize the interest and push it into the principal the way it has to be? meaning, im paying interest on the interest and then later interest on the interest on the interest, and so on. if i refi w someone else, does that stop? any thoughts?
thx so much for your prior repsonse! a lot of this is me thinking outloud and trying to understand all this. i'm just taking an absolute bath here - between my wife and i we're paying about 1700 per month in school loan interest (which is a decent mortgage!)
I would doubt fed loans are anything other than normal simple interest loans.
If your plan is 557 and you are gaining 200 per month, pay 800 and you are reducing your balance and your still not paying 1200.
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Thank you so much. I thought the same thing about the consolidation messing up the loan forgiveness. A rep at Navient said it wouldn't be a problem...but we know they are full of it lol. I think I'll leave it alone, or, at least those that are included in that. I'll ask the other stuff in the FICO board. I really appreciate all your insight.
I'm glad to hear this - I think I stopped breathing when you mentioned consolidation - I think it would be a terrible idea.
Also, Navient... grr...
Do you have confirmation that the installment loans are actually affecting your mortgage scores? I've not spent much time looking into them, but I thought only the aggregate utilization % on installment loans mattered (and then not by much), not how many - I really thought it was just the number of revolvers reporting.