I am including the student loan information for a friend below. Also including a link to the excel sheet here There would be about 3,000 left every month after various expenses. Friend is a pharmacist, have not received consistent schedule yet but gets on an average 120 hours/month @ 55$/hr. We share groceries, rent etc so that helps as well.
The question that is most concerning me is:
- The friend is considering consolidation of loans but cannot consolidate public and private loans, so unsure if consolidation is a good option or not at this point or we may end up paying more.
- We are planning to go with term based payment as that seems to be the cheapest option at this point. So just utilize the 3000 to pay on minimum due which is about 1761.17 at this point and then use the remainder 1238 to pay on the accumulated interest rate on loans 2, 1, 9 and 7 and then use that remainder to keep paying the principal. Plan is to try and finish this as early as possible.
- Have been suggested to use the income based repyament plan, unsure why we should use that since we would end up paying more in that case.
- Since the borrower has a good credit history (Fico score around 800), a thought was to get a credit card which has about 21 months of 0% APR for balance transfer and use that to pay off the Outstanding Interest of loan 1 , 2 so that come next month, they dont add up to the principal. Is that a bad idea?
Thanks and appreciate all the feedback.