Editor’s Note: This visitor post ended up being submitted by first-year resident and reader that is regular Overcast. Several of you’ve got had the question that is same now due to the perseverance of Wynton, no more have to imagine during the results of prepaying your loan under RePAYE. As it happens the clear answer isn’t just what We hoped or expected. Wynton and I also haven’t any economic relationship.
An question that is unanswered Could I Keep Carefully The RePAYE Interest Subsidy if I Prepay My Loan?
After searching all over internet, WCI forum, Reddit and previous WCI articles, we finally reached away to Dr. Dahle while the WCI Team by having an unanswered question: may i pre-pay my figuratively speaking while nevertheless wanting to make use of the RePAYE 50% Interest Subsidy? Constantly the instructor, Dr. Dahle provided me with the solution to the very best of his knowledge then again encouraged me personally to test that out myself and “send me personally a visitor post about any of it! ”
Establishing the phase
Let’s set the phase a bit that is little. I will be a year that is first with
$150k of student education loans at mortgage loan of 5.5% and my loan company is FedLoan Servicing. We joined the RePAYE plan this summer and compliment of my pupil status and my wife’s relatively lower earnings year that is last our expected payments for the following year under this plan are $0…. Which implies that i am obtaining the complete 50% interest subsidy through the federal federal government and a powerful rate of interest of 2.75%. Continue reading …