Need Advice for Paying Debt!!

[havecollectionsaccounts]

Hello everyone. I'm looking for some advice for paying off student loans and other debt. Although I have $83,000 in student loan debt, I only have a couple of other loans and feel that I'm in a great place- well, more fortunate than others. I just graduated with my master's degree and am in my grace period until Jan. 2013. I only have about $200 extra per month to work with- and that's if I stick to my budget. I receive 2 bonuses throught the year from work, each about $1,000. I'm trying to decide if I should go with the snowballing method or if I should pay on higher interest rate loans first. I did re-fi my car and it's now at 4.99%. I'm considering consolidating my newest school loans but don't want to consolidate those with the previous because my old loans are consolidated at 5.75%. The Fed. SL said that I could have 2 consolidated loans. So, I'm unsure if I should pay high int. rate things first, or if I should pay my car off early to free up $307/mo to apply for other loans. Any help is appreciated!!

Account: F452681983 Outstanding Balance: $83,936.88

Principal Balance	Accrued Interest	Fees
$78,447.64	$5,489.24	$0.00

Group A | DIRECT SUB

Interest Rate:	6.800%
Principal Balance:	$4,562.00
Accrued Interest:	$0.00
Fees:	$0.00
Outstanding Balance:	$4,562.00

Group B | DIRECT CONSOL

Interest Rate:	5.750%
Principal Balance:	$35,766.64
Accrued Interest:	$4,055.33
Fees:	$0.00
Outstanding Balance:	$39,821.97

Group C | DIRECT SUB

Interest Rate:	6.800%
Principal Balance:	$8,500.00
Accrued Interest:	$0.00
Fees:	$0.00
Outstanding Balance:	$8,500.00

Group D | DIRECT UNSUB

Interest Rate:	6.800%
Principal Balance:	$9,355.00
Accrued Interest:	$912.61
Fees:	$0.00
Outstanding Balance:	$10,267.61

Group E | DIRECT SUB

Interest Rate:	6.800%
Principal Balance:	$8,500.00
Accrued Interest:	$0.00
Fees:	$0.00
Outstanding Balance:	$8,500.00

Group F | DIRECT UNSUB

Interest Rate:	6.800%
Principal Balance:	$9,358.00
Accrued Interest:	$475.62
Fees:	$0.00
Outstanding Balance:	$9,833.62

Group X | DIRECT UNSUB

Interest Rate:	6.800%
Principal Balance:	$2,406.00
Accrued Interest:	$45.68
Fees:	$0.00
Outstanding Balance:	$2,451.68

ECSI Student Loan

Debt Amount: $6,250

Current Balance: $5,111.99

Fixed Payment: $66.30/ 10yr

Interest Rate: 5.000%

Pro Fed Credit Union- AUTO LOAN

Debt Amount: $12,000

Current Balance: $12,000

Fixed Payment: $308.00

Interest Rate: 4.99%/ 42mo.

[laz98]

Personally, I would focus on paying off the small balances first, so that they don't turn into big balances. 

[Jazzzy]

Would you lose your present interest rate if you consolidate? I thought they gave weighted average to the interest rate upon consolidation.

With your total amount of debt, you would qualify to stretch your payments out over a longer period of time. You can always pay ahead, but it gives you some breathing room.

Are you in a profession where you may be able to get some of these loans paid off or forgiven by the feds? Healthcare? Teaching? Public service? Work for a nonprofit?

[havecollectionsaccounts]

I will consolidate the newer ones but cannot until I'm out of my grace period. I'm then going to switch to the income based plan for a lower payment. The individual loans are at 6.8 but I'm not sure that I want to consolidate them with the old ones because that rate is lower.. I think 5.75 or so. I can have 2 consolidated loans. I no longer work for non-profit but I know that there is something new that if you pay 120 payments successfully, that you can be forgiven. That's what I'm looking forward to! My main question is should I pay off my car first to free up $310/mo that I can put toward other loans... or should I pay off the $5,611 since it's the lowest amount... and free up that money? So many choices!

[SCF]

Other than specific professional programs (IE for doctors/teachers who work in certain high-need service areas), the 120 payment forgiveness program is for people employed in a public service profession.  For each payment to count, you have to have been employed at an eligible profession or non-profit organization at the time the payment was made (details are here: http://www.studentaid.ed.gov/repay-loans/forgiveness-cancellation/charts/public-service#what-does-it...)

I would reccomend paying off the highest interest balance first, to save the most money over time.  But if you want to get an early "win" to boost your morale and help you stay committed, then paying off the smallest balance first is a good way to go.

[Anonymous]

Hi.  If I were you, and I practically was, I would do some serious research online about "IBR."  It's a fairly new govt. Program that allows us to pay back our student loans based on current income. IBR stands for Income Based Repayment.  I have 3 degrees, taught for 10 years and have been a school counselor for 5, with interest...my loan balance is now over $100,000...well over.  The actual amount borrowed over the 10 year college period was around $55,000.  Too many def. and fore. caught up to me.  The great news now, is that I pay less than $200 a month to keep my Sallie Mae loan account in great standing.  It updates every year with each new income tax filing to adjust to your current salary, but this is a fantastic program.  If you do manage to have a balance after 30 years, it's forgiven!  Work in public service, and it's forgiven after 10 years!  I think I can handle a couple of hundred a month for 10 years.  Look into...IBR.  Good luck.