Okay so I jumped through all the hoops to switch from IBR to REPAYE. They capped my $18,000 in interest. Turned it all to principle and I am okay with it. I am better than okay. I have actual, honest hope. I took out $70,000 in loans for my Bach and Masters. After 5 years my balance is $88,000 to start 2017. My interest went from $4,550 to $5,720 a year with the capped interest. But since my payments are zero, half of the interest gets forgiven. So I am really accruing $2,850 in interest a year.

So I decided to make an extra payment this year. I saved up $2,800 and made a lump sum payment one month on one loan. It has to be lump sum or I would not get as much interest forgiven. For the first time in 6 years, my loan balance did not go up at a staggering rate. It is just sitting there. If I can keep up the $3k a year extra payment, I can let inflation work a little magic on my debt.

I’m focusing the extra payment on the capped interest so I can do a little double dipping on lowering accrued monthly interest and taking tax deductions.  I’m so motivated that I am thinking of paying off my smallest loan next year.  One day I might choose to go back on standard.