Hi! One additional note – I am not sure what kind of subsidized loans you have. If you have subsidized loans and work in certain occupations, you may be eligible for loan cancellation. Check out the loan forgiveness for public employees website. If you work in any other these careers you may qualify:
· Volunteer in the Peace Corps or ACTION program (including VISTA)
· Member of the U.S. armed forces (serving in area of hostilities)
· Nurse or medical technician
· Law enforcement or corrections officer
· Head Start worker
· Child or family services worker
· Professional provider of early intervention services
For each complete year of service, a percentage of the loan may be canceled. The total percentage of the loan that can be canceled depends on the type of service performed. It would be great if this advice might apply to you! Best wishes and thanks for writing.
I agree with Kathy that certain jobs can provide an opening for student loan forgiveness. Along with federal jobs certain non-profit positions can provide loan forgiveness - here is reading from Studentaid.gov on how. I'd first address any higher interest debt like credit cards and set aside 3-6 months expenses first to avoid having to use them. Them I'd take care of private student loan debt, then the unsubsidized and subsidized in that order.
An unsubsidized loan is a loan that accrues interest from the disbursement date. When an unsubsidized loan is accruing interest, the amount of interest is added to the principal, and you’ll have to pay interest on the increased principal amount (this is called capitalization). So if all else are equal, you should prioritize unsubsidized loans first.
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