I have been unable to determine how Navient adjusts or calculates the interest rate subsidy on my REPAYE payment plan and how that would be affected by overpaying or prepaying.
Scenario is:
About 185K in federal loans, almost all unsubsidized Grad Plus at 5.4-6.1%. Current payment is $77 month, lower than predicted given less than full 1yr income on last year's taxes which I used to certify for REPAYE. Typical resident salary of about 55k, one year from graduating to community doc. Partnered but not yet married, partly for financial benefit of REPAYE, her salary 100K and her loans are done.
Currently we both max Roth IRA, she maxes 401K. I put in ~12K yearly to ROTH 403B (no match). Fully funded large E-fund/future moving expenses @~1%
Have several extra hundred dollars per month that we are trying to determine how best to allocate.
I have been putting ~$500-700 per month towards pretax 403B thinking that it reduces my future REPAYE, might be better directed here than the adjusted rate on my student loans. Thought about saving for house downpayment but we are few years from purchasing and would rather tackle loans first. Likely will refinance student loans as attending and aggressively pay off over 2-3 years.
Should I being funneling money to the loans now or does this effectively worsen the REPAYE benefit and I'm better off directing towards savings? max 403B ROTH or direct some towards pretax 403B?
Thanks
Thanks
Scenario is:
About 185K in federal loans, almost all unsubsidized Grad Plus at 5.4-6.1%. Current payment is $77 month, lower than predicted given less than full 1yr income on last year's taxes which I used to certify for REPAYE. Typical resident salary of about 55k, one year from graduating to community doc. Partnered but not yet married, partly for financial benefit of REPAYE, her salary 100K and her loans are done.
Currently we both max Roth IRA, she maxes 401K. I put in ~12K yearly to ROTH 403B (no match). Fully funded large E-fund/future moving expenses @~1%
Have several extra hundred dollars per month that we are trying to determine how best to allocate.
I have been putting ~$500-700 per month towards pretax 403B thinking that it reduces my future REPAYE, might be better directed here than the adjusted rate on my student loans. Thought about saving for house downpayment but we are few years from purchasing and would rather tackle loans first. Likely will refinance student loans as attending and aggressively pay off over 2-3 years.
Should I being funneling money to the loans now or does this effectively worsen the REPAYE benefit and I'm better off directing towards savings? max 403B ROTH or direct some towards pretax 403B?
Thanks
Thanks
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