Private College Student Loan

What repayment plan for student Federal Direct Loan should I elect?

I have about 20,000 in loans to begin repaying the beginning of next year. I will have an income of $60,000 starting in July and will more than likely move up to the next tax bracket within 10 years. What would be the most beneficial repayment plan for tax purposes?

Public Comments

1. Smart thing is to pay 2000k a month and pay it all in 10 months The quicker you pay it the less interest you flush down the toilet.
2. Quick note about that tax deduction. It's really not that much of a big deal. You are better off financially paying off the student loan and saving on that interest you will be paying. Sure, you'll miss out on deducting the interest. But think about it. You only get back 25% as a decution off interest paid. So you give a $1,000 a year in interest and only get back $250. The calculations show that once you do your taxes you only would get back about $125 for paying that $1,000 in interest Something to think about. --- Have mother in law that loves tax deductions. She honestly thinks you get all the money back or that the things are for free