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So i’m attempting to determine if it is smart to begin aggressively paying off 93k of scholar loans at 7% curiosity (loss of life) or financial institution on them being forgiven through PSLF and saving for retirement a home as an alternative.Some context:The loans are my spouse’s (additionally mine now) from her grad faculty to be a medical social employee. The loans are all federal grad plus loans and she or he has made 44 qualifying PSLF funds since they entered compensation. Her loans are on SAVE and she or he has a 0$ minimal cost up until she has to recertify in nov 2024. My spouse is at the moment working for a PSLF eligible employer and plans to take action for the foreseeable future. As soon as we recertify our estimated month-to-month cost must be ~400$. I’m additionally within the strategy of making use of to medical faculty and would ideally begin august of 2025–but in all probability wouldnt begin making attending pay till 2032.My worries:after I take a look at the state of scholar loans within the US I am unable to assist however fear concerning the longevity of PSLF. My spouse has 6.3 years earlier than she is even eligible to use for PSLF. I am fearful this system won’t even exist or will likely be greaty curtailed by no matter administration has a tough on to make life tougher for younger individuals. With the excessive 7% curiosity and anticipated incoming med faculty debt I’m wondering if it could be higher to only aggressively pay these loans off.Monetary scenario:I’ve solely only recently woken as much as the necessity to save higher for retirement, We make collectively about 100k earlier than taxes and are ontrack to avoid wasting 25% this yr. We’ve about 30k in retirement accounts with an extra 14k earmarked for the roth ira jan1st of 2024. I even have a wholesome emergency fund (6 months bills) and modest funding revenue from a earlier job’s inventory choices. I might afford to knock down the steadiness by 46k–which would contain not contributing to roth ira, cashing out investments and decreasing emergency fund to three months of bills. We additionally might afford to contribute one other ~25k within the subsequent 18 month sbefore med faculty. Personally this looks as if i’m sacrificing my future retirement and safety to repay a mortgage which i’d actually favor to not do. However can I actually depend on the dept. of ed to not f*ck me over within the subsequent 6.3 years?
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