After completing Undergrad December 2017 I began making payments on my student loans (#1-5 below), paying more than necessary on the smallest balance of my 6.8% loans (usually owe $340, paying $500). My current Employer offers 100% Tuition Reimbursement on continued education (A/B = 100%, C=75%), so I have enrolled in a Masters of Applied Analytics program (Online). To help offset the cost and not need to front the cash every semester, I went ahead and took out financial aid once more with an award of $15,500. Detailed below:
Loan # | Issue Date | Loan Type | Status | Est. Balance | Interest Rate
- 09/23/2010 Direct Unsub Stafford Repayment $6,500 6.8%
- 09/22/2011 Direct Unsub Stafford Repayment $3,200 6.8%
- 08/20/2012 Direct Unsub Stafford Repayment $5,850 6.8%
- 08/19/2013 Direct Unsub Stafford Repayment $6,850 3.86%
- 08/26/2014 Direct Unsub Stafford Repayment $6,750 4.66%
Grad School Loan:
- 01/04/2019 Direct Unsub Stafford In School $15,500 6.6%
1 Semester costs roughly $5,000, so I have been issued a "Refund" of $10,500 from my latest loan and I am trying to figure out the best way to put that to use (As long as I keep my grades up, the $5,000 I will then get reimbursed from my Employer should be enough to fund most/all of my Masters program in the coming semesters).
Previously I was using the Snowball method under standard repayment and while I owed $350 total each month on my 1-5 loans, I was paying an extra $150 each month directly towards loan #2 (hence the lowest balance of my 6.8% loans). I would like to keep roughly 20-25% back in case I have a semester where something comes up and grades don't meet my Employers Reimbursement policy (hopefully not, but life happens).
Under that plan, that leaves me with ~$8,000 roughly that I could immediately pay back into my loans but I wanted some advice on which one to put that towards?
- Should I just pay off what remains of Loan #2 ($3,200)? And apply the rest to another loan (if so, put the rest towards the next lowest 6.8% loan or my newest largest balance one?)
- Put it all towards my latest Loan #6 to reduce that principal back down?
- Or put it towards, say, Loan #1 so another one of my 6.8% loans is close to being paid off?
- Or is there a better idea I haven't thought of?
While I am now back in school and not required to pay on my loans, I still intend on fully paying at least $500/mo into my loans just like I was before, just trying to figure out the best way to pay back with my refund. Thanks.