I have the following student loans:
Balance Minimum Interest
Husband's
1,195.00 22.00 3.15
1,845.00 34.00 3.15
Mine
9,003.22 103.00 6.80
12,757.00 151.00 6.80
9,338.10 102.00 6.55
15,605.84 171.00 6.55
21,033.41 101.00 3.38
23,383.06 112.00 3.38
We also have other debt. I am going to pay an extra $980 per month towards paying down all debt starting with the highest interest. We should pay everything off by January 2018.
Now, I was looking into getting a "Pay as You Earn" or IBR or ICR payment plan with the student loans, which may be renewable every 12 months based on income. They told me that the subsidized loan's interest will be paid by the government but that the other loan's interest will be rolled into the principle. If you are curious, which I was, she told me I am paying a total of $390 per month in interest! With the Pay as you Earn, the payments would be about $570.
I was thinking I can do this to help pay down the other debts faster and then move all the money snowballed from those to pay off the student debt to get this down faster than January 2018.
Problem is that the paperwork is asking for my husband to sign since we file taxes jointly. Online the paperwork is calling it co-signing. On the printed paperwork, it is just asking for signature.
My concern is that if he signs, and I die before these are paid off, he will be responsible to pay them off on his own.
Has anyone had any experience with this? I called and asked and the person said he wouldn't be responsible. However, all legalities say yes and online there are horror stories of husbands and parents having to pay off the student loan debt of those who died.
Should I just keep paying the payments as is $796 per month/$390 interest/month... or take a risk and have him sign so we can get the lower payments $570 per month with subsidized loan interest paid by government?
Also, I am reading lots of horror stories in my research where people in these plans have been screwed because payment didn't go to the right loans or there were mistakes then fees and stuff added on. And I have also heard of people paying off their student loans and seeing it paid in full on credit report to later have Sallie mae come after them for more money.
Some stories of people paying off their loans will be good to hear!