Hello everyone. So, putting our daughter through college I bit off way more than I could chew. I did a poor job with finances and got in way over my head to the tune of 88k in loans. I wanted her to go where she wanted and I let her. Oh well, it’s done and she’s graduated. I recently received an inheritance of 175,000. Obviously that takes care of the loans but I do wonder if there is a better way to go about paying it off? These are Direct Parent PLUS loans.
I imagine there’s no account that would pay more than what the interest on the loan would be. The monthly payments are around 1,000 a month. By the time they are paid off I will have paid almost 20k in interest. I was just wondering if there might be a way to go about asking for a lower total if I pay it all at once? The payments have been in forgiveness but start in a couple of weeks.
I have a about 30k in vehicle loans that will be getting paid off. After everything assuming there’s no way to get the college loans reduced I will have about 57k left. Luckily I keep the credit cards paid in full every month already. We also have about 3 months worth of expenses saved that we don’t touch.
Now, I do want to do some fun things for the family and there is a bathroom remodel that we need. My guesstimate is that I will have about 35k left for investing? Or lets just say 30k because we know how remodeling goes. I just don’t really have any ideas where to put it.
I do plan on speaking with a financial advisor but also looking for advice on here as well. What would you all do? Thanks for your time
Edit: Also, how do I go about choosing an advisor? I’ve no idea really who to talk to. I assume I can find someone online or should I look locally? If online any recommendations?
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Well, what are the actual loan amounts and the rates on them? We need that information in order to advise how to prioritize paying them.
> I was just wondering if there might be a way to go about asking for a lower total if I pay it all at once?
No, they have no reason to negotiate with you. The lender earns more from the interest, and since student loans typically cannot be discharged in bankruptcy, you have no bargaining power.
> I do plan on speaking with a financial advisor
To be frank, $175k is not really “advisor territory.” You’re most likely just going to want to pay off the loans and invest the rest in retirement/index/mutual funds.
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