Better financial decision with respect to repayment of loans

[espionage]

I have approx $180,000 in student loans - 90k with fed 90k with private.

 

My monthly private payment is $700 (to be paid off from today in 16 yrs) while fed is $250.

 

I have a few questions:

 

1) I want to reduce my private monthly payments and extend the term of the loan. Of course that will increase the amount of interest I pay over the life of the loan, but wouldn't it make more financial sense to do this? I could be pulling this outta my butt completely, but isn't the value of a dollar saved in your pocket today going to be more valuable than a dollar in our pocket 5- 10- 15- years from now? I want to buy a foreclosed house, live in it and then sell it in the future for profit and use profit to pay my loan off.

 

2) Is there a way to reduce my monthly private loan payment (i.e. extended repayment program) at my whim or do I need to QUALIFY for it?

 

3) Are private loans forgiven at 25 years of repayment (300 payments) like federal?

 

Thanks for your insight.

[snowpuppy]

There is little regulation by the Feds for private loans so your payment is whatever you can negotiate with your lender.

 

There is no forgiveness provision with private loans as with Fed loans.

 

For $180k, I hope this was for an advanced degree and you are now a working professional.

[espionage]

LOL, yes this is for a JD (although not entirely sure that means much) and yes I was one of the lucky few to secure a job as an attorney. So, just to be clear, the current state of loans is that after 25 years of payments of loans with fed, they are forgiven but with private loans payments can go until you're dead?

There is little regulation by the Feds for private loans so your payment is whatever you can negotiate with your lender.

 

There is no forgiveness provision with private loans as with Fed loans.

 

For $180k, I hope this was for an advanced degree and you are now a working professional.

[snowpuppy]

LOL, yes this is for a JD (although not entirely sure that means much) and yes I was one of the lucky few to secure a job as an attorney. So, just to be clear, the current state of loans is that after 25 years of payments of loans with fed, they are forgiven but with private loans payments can go until you're dead?

There is little regulation by the Feds for private loans so your payment is whatever you can negotiate with your lender.

 

There is no forgiveness provision with private loans as with Fed loans.

 

For $180k, I hope this was for an advanced degree and you are now a working professional.

 

If you are lucky enough to be serving as a Public Defender, working for a Prosecutor or have a job with an agency (State/County/Fed) you may be eligible for Public Service forgiveness. You must agree to income monitoring by the IRS and enroll in either IBR or ICR payment plans. Some non-profits may also be included so if you work for Legal Aid or a like organization you may qualify. After 120 on time monthly payments (10 yrs) the balance is forgiven. This is only for your Federally backed loans. You're on the hook for your private loans.