Tami has been repaying her student loans for about 10 years now but she's only about halfway done with her repayment. She had converted her Federal Direct Loans into a Gradudate Repayment Plan with a 20 year repayment period.
Under the Graduate Repayment Plan, her payments started out low, but have been increasing ever two years. She'd like to pay off her loans soon to save money on interest and not worry about higher payments once the emergency relief period ends after May 1, 2022.
Fortunately, Tami maintained employment during the pandemic and has been making extra payments towards her loans. With those extra payments, she was able to pay down her highest interest loans. Now, all of her loans will be completely repaid in just four years, instead of ten. She'll also save nearly $2,000 in interest.
Also, by getting ahead on her repayment plan, her monthly payments will actually be lower once repayment resumes this fall even though they were scheduled to be higher.
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