This podcast episode discusses the decision-making process for choosing the right repayment plan for student loans. It highlights the importance of paying the least amount over time and presents two approaches: pursuing a loan forgiveness program or paying off loans aggressively. The episode suggests using online tools like the loan simulator tool provided by the Department of Education to make informed decisions. It explains various repayment plans, including the 10-year standard plan, graduated repayment plan, and income-driven plans, and emphasizes the affordability of income-driven plans based on borrowers' income. The episode also provides information on forgiveness programs for different professions and advises against refinancing federal student loans into private programs to retain benefits and safety nets. Strategies for paying off student loans, such as the avalanche method and the snowball method, are discussed. The episode concludes by encouraging borrowers to explore their options, make necessary changes to their repayment plans, and utilize free resources available for assistance.
Anti-commonsence
Refinancing federal student loans into private programs is advised against in order to retain the benefits and safety nets provided by federal loans.
