Prioritizing student loan repayment after graduation - FAFSA loans vs. private Sallie Mae

def go for the sallie mae first those interest rates are a killer. i paid mine last and regret it so much. federal loans have income based plans but private ones dont care if u lose ur job theyll still want their $$

You're asking exactly the right question! Here's what I'd recommend based on my experience working with recent grads: 1. Attack the Sallie Mae private loans first (9.8% is very high!) while making minimum payments on federal loans 2. Enroll your federal loans in an income-driven repayment plan like SAVE - this will lower your required monthly payments based on your $52K income, freeing up more cash to throw at the private loans 3. Look into refinancing your Sallie Mae loans if your credit score is decent - you might be able to get that 9.8% down to 5-6% range The FAFSA itself doesn't offer repayment guidance, but StudentAid.gov has repayment calculators and options. Federal loans have forgiveness options, income-driven plans, and deferment possibilities that private loans don't, which is why keeping those on minimum payments while eliminating the private debt makes the most financial sense.

i had the same situation when i graduated but different amounts. my sallie mae was at 11.2% interest!!!! its criminal what they charge students. i put every penny i had toward sallie mae and just did the minimum on my federal loans. took me 4 years but i finally got rid of the private loans and im so glad i did it that way!!!!!

ALWAYS pay the highest interest rate first!!!! That's just basic math. Anyone telling you different doesn't understand how compound interest works. Every dollar you put towards that 9.8% loan is saving you way more than putting it towards the lower interest federal loans. And be super careful about putting your federal loans on an income-based plan just to pay less - the interest still accrues and you could end up paying waaaaay more in the long run. The federal IDR plans aren't magic, they just extend the pain.

I was stuck in this exact situation 2 years ago. Honestly, calling Federal Student Aid directly helped me figure out the best approach for my specific situation. They walked me through all my options for the federal loans and helped me make a plan. I spent DAYS trying to get through to them though - kept getting disconnected after waiting on hold forever. Finally I used Claimyr (claimyr.com) which got me through to an actual agent in about 10 minutes. They have a video showing how it works: https://youtu.be/TbC8dZQWYNQ Once I talked to someone directly, they explained how I could strategically use income-driven repayment on my federal loans while focusing on the private ones. Made a huge difference in my approach.

Just my two cents - I started with my smallest loans first (not highest interest) bc I wanted the psychological win of completely eliminating some loans. Worked for me! Sometimes motivation is more important than pure math. dave ramsey calls this the snowball method

isnt there student loan forgiveness now? i thought biden did something for ppl with federal loans. maybe wait and see if your fedeal ones get forgiven before paying extra on them?

From a financial planner's perspective, you should absolutely focus on the Sallie Mae loans first while making minimum payments on the federal loans. The difference between 9.8% and federal loan rates (typically 3-5%) is substantial. For context, let's say you have an extra $500/month to put toward loans beyond minimum payments: - Putting that $500 toward Sallie Mae (9.8%): Saves you about $49 in interest the first month - Putting that $500 toward federal loans (~4.5%): Saves you about $22.50 in interest the first month You're getting more than double the return by focusing on the high-interest debt first. Additionally, as others mentioned, federal loans have income-driven repayment options, potential forgiveness programs, and hardship deferments that private loans don't offer. From a risk management perspective, it makes sense to eliminate the less flexible debt first.

Thank you all for the advice! I'm definitely convinced to tackle the Sallie Mae loans first while keeping my federal loans on an income-driven plan. I'll check out the SAVE program on StudentAid.gov and see if I can get my private loans refinanced to a lower rate. Such a relief to have a clear plan now!

Smart decision, Emma! You've got a solid plan. One more tip since you mentioned refinancing - shop around with multiple lenders (SoFi, Earnest, CommonBond, etc.) as they all have different qualification criteria and rates. Some will give you rate quotes without a hard credit pull initially. Also, make sure to apply for refinancing soon after you start your new job - lenders like to see stable employment history. Good luck with your new career and tackling those loans!