She went from an interest rate of 6.75% thirty-year loan to a 3.10% fifteen-year loan and her monthly payment is less than what she was paying for as well.
Of course, the shorter the term, the lower the interest rate is as well.
If you owe large student loans, there are ways to pay them off faster.
Remember that an income-based repayment plan does not really benefit you in the long run because that interest is accruing.
If you’re paying less than even the interest a month, your balance will exponentially grow.
Unless you work for certain jobs that will qualify you for loan forgiveness, you might be better off refinancing your student loans.
Also, loan forgiveness does not let you get away from paying taxes. You might be forgiven for the loan but you most likely will have to pay taxes on the forgiven amount.
Imagine after 20 years, if your balance is $400K, how much tax do you think you’ll be paying for that? Be smart about your student loans.
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