Hello!
I have a huge amount of student loan debt from grad school (about $95k between subsidized and unsubsidized loans) and was wondering what was the best way to approach it. I started a new job about a year ago in which I make $54k. My loans had been in deferment until about three month ago beacuse I was going through the consolidation process and through the change to IBR. Since my payments for this year were calculated using last year’s salary (which was very small) I was appointed to pay $10/month.
I have been reading about the student loan forgivess but I am not sure what are the additional requirements for forgiveness after you have been repaying for 25 years in my case. I had understood that you would have to pay taxes on the amount that was forgiven but I am not sure how that would work in Puerto Rico since we don’t fill federal taxes. I have some savings ($7k) and other automobile debt ($28k). I put 5% towards my 401k. I have started saving recently at a rate of $1000 per month. I don’t know if it would be better to try to pay off the loans as fast as possible or pay the minimum for 25 years and then pay taxes? I would like to still be able to save monthly, contribute to the 401k and eventually buy an apartment but I can’t see how that would be possible. I don’t feel like I have a lot of time for all the things I want to do since I am 28 already. I feel like the student loan is my lifetime mortage. :( I am also worried about what my actual loan payment will bases on what I make now.
Any help, information or suggestions would be greatly appreciated.
Thanks!

It sounds like you have a lot to consider but kudos to you for knowing your options! In regards to how being in Puerto Rico will affect the taxes, you’ll want to check with the Federal Student Aid office.

In terms of what’s best for you, Heather focuses on providing training and self-help resource materials, rather than individual consultations but she does recommend GLAdvisor, a unique company helping students and young professionals manage their student loan debt and providing comprehensive financial advisory services and tax preparation. GL can help you determine the best repayment strategy. You can find more information here.

I hope this helps! Best of luck!

-Heather’s Helper