My student loans are on income-based repayment (just entering my 3rd year; the final year where my subsidized loans are still eligible for interest forgiveness).
One of the stipulations of IBR is that I have to re-apply every year. The re-application deadline for me falls in August. Its probably not surprising that, due to my increased income, my minimum payments are going up.
At first when I saw the email which notified me of the increasing minimum payments, I was bummed. “Dang it, that sucks” I thought.
But then it hit me – I’m paying like 10x the minimum payments right now (this is definitely hyperbole, but I still pay WAY over my minimums). So the tiny increase in minimum payments (I think it increased about $40/month) does not even come close to affecting me. After the realization, I laughed a little to myself.
Obviously no one likes when minimum payments increase. Thats what sucks so bad about adjustable rate mortgages! But at this stage in our debt payoff game, we’re focusing on the student loan payments. If we were still paying minimums on them in order to put more money toward a different loan, then this change might affect us. But given the massive sized student loan payments that we make, it literally doesn’t make an iota of difference to me if the payments increased $5 or $50. Who cares?! I pay way over the minimum anyway. I’m ready for them to be GONE!!!
Also, as just a random tidbit, when we first met with our mortgage broker with all our documents, he made a comment along the lines of “wow, I’ve never seen anyone with this much student loan debt!” I kind of chuckled (ummm…have you never done a mortgage for a doctor before??). But not just because I was genuinely surprised by his inexperience with large student loan debts….I also chuckled because had I visited him 2 years ago, we would have been carting around an additional $50,000+ of miscellaneous debts, too! We’re in much better shape now than we were then! But, yes. I have a disgusting amount of student loan debt. Can’t wait to kick it all to the curb!!!
Just for fun – what are your minimum payments on your student loan debt? My Navient loan minimum payments are about $600/month. A ton of money, for sure. But when I’m paying thousands per month on the loans, a $40 increase doesn’t make a big difference.