What would you do?

[Saul Good]

Originally Posted by Wazu

Just pay it and be done with it. There's so much value to just being "done" with all that garbage. Get there as fast as you can and enjoy it once you get there.

There's even more value in knowing that you've got the $17,500 sitting in an account in case you need it and then not needing it.

[wazu]

Originally Posted by Saul Good

There's even more value in knowing that you've got the $17,500 sitting in an account in case you need it and then not needing it.

It's a slow build to $11,200. Oh, and he gets to deal with creditors for the next five years harassing him. And a destroyed credit rating. (Note: this may not be important unless there are job opportunities that require a credit/background check.) And at the end of it all he would be counting on nobody changing the "forgiveness" rules.

No thanks. If you can shed that monkey, then do it.

[Saul Good]

Originally Posted by Wazu

It's a slow build to $11,200. Oh, and he gets to deal with creditors for the next five years harassing him. And a destroyed credit rating. (Note: this may not be important unless there are job opportunities that require a credit/background check.) And at the end of it all he would be counting on nobody changing the "forgiveness" rules.

No thanks. If you can shed that monkey, then do it.

My wife owes about $20K. She's 2 years into the 5 year deal that will pay back $17,500 of it. I've got that sitting in an account drawing a little interest while we make the payments on time.

If she decides to change careers or stop working, the money is there to pay it all off. Otherwise, she gets $17,500 in 3 years, and we pay off the loan.

There's no harassment. My credit is 800+, and hers is in the upper 700s. The only possible reason to pay it off would be if you were worried about the government reneging on the deal, and you wanted to avoid 5 years of interest on the debt by paying it off early.

I'm not worried about that, and the interest is 2.25% on my wife's loans. (It sounds like it's higher for Phobia's, but I don't know that for certain.) Either way, it sounds like he's working on other debts as well.

At the very least, he should move this one to the bottom of the stack and focus on the other debts first.

[wazu]

Originally Posted by Saul Good

My wife owes about $20K. She's 2 years into the 5 year deal that will pay back $17,500 of it. I've got that sitting in an account drawing a little interest while we make the payments on time.

If she decides to change careers or stop working, the money is there to pay it all off. Otherwise, she gets $17,500 in 3 years, and we pay off the loan.

There's no harassment. My credit is 800+, and hers is in the upper 700s. The only possible reason to pay it off would be if you were worried about the government reneging on the deal, and you wanted to avoid 5 years of interest on the debt by paying it off early.

I'm not worried about that, and the interest is 2.25% on my wife's loans. (It sounds like it's higher for Phobia's, but I don't know that for certain.) Either way, it sounds like he's working on other debts as well.

At the very least, he should move this one to the bottom of the stack and focus on the other debts first.

Okay, stand corrected on that part, then. I have heard of companies making a business out of collecting on student loans just like they would credit cards. Maybe some of that has changed with the recent overhaul to credit rules. Surprised it doesn't affect credit rating, though.

[Saul Good]

Originally Posted by Wazu

Okay, stand corrected on that part, then. I have heard of companies making a business out of collecting on student loans just like they would credit cards. Maybe some of that has changed with the recent overhaul to credit rules. Surprised it doesn't affect credit rating, though.

Nothing is changed. You keep paying the monthly payment during those 5 years, so there is no reason for collectors to call. The question isn't whether or not he should stop paying. The question is whether he should just pay the whole thing off and be done with it.

[wazu]

Originally Posted by Saul Good

Nothing is changed. You keep paying the monthly payment during those 5 years, so there is no reason for collectors to call. The question isn't whether or not he should stop paying. The question is whether he should just pay the whole thing off and be done with it.

Got it. I want to change my vote now.

[DaFace]

Originally Posted by Wazu

It's a slow build to $11,200. Oh, and he gets to deal with creditors for the next five years harassing him. And a destroyed credit rating. (Note: this may not be important unless there are job opportunities that require a credit/background check.) And at the end of it all he would be counting on nobody changing the "forgiveness" rules.

No thanks. If you can shed that monkey, then do it.

Not sure where the creditors stuff came in here. I'm not talking about passing on required payments. In fact, to de-simplify it a bit, it's currently sitting at $25k with a $200 minimum monthly payment. By my calculations, if we just pay that minimum for 5 years, it'll be sitting at around $17.5k.

Like Saul Good, my credit's at around 800, and the wife is at around 785. We're not in trouble of screwing up here. It's purely a matter of what the best approach is for the situation.