It is a common piece of advice to students who graduate with student loans – that they should opt for a repayment plan that prioritizes paying back as much as they can as soon as they can. Unfortunately, this advice is often wrong.
No two people are alike – nor are their careers and/or debts. And so it would be ridiculous to think that the same payment plan will work for everyone. That’s why the US Government offers various versions of the repayment plan for student loans.
If you are considering how much to pay off each month, think about what kind of lifestyle you want right now, and what you expect in the future. If you prioritize holding on to what little income you have today, but remain confident that money will be more readily available long term, you may want to minimize your payments today.
Read this article for more information.