I personally love option two. It allows for maximum usage of the money. Student loan interest being tax deductible also lowers the effective rate. If Chase interest can pay it off for you over time, I think that is great management! The effective rate is less than inflation so from a mathematical standpoint, it's the best. Paying it all off feels good emotionally and may be worth the stress to a lot of folks, but it is not normally the best route.

2 ...

Report Post

Posted by Lawyered

The Sip

Member since Oct 2016

29504 posts

Posted on 2/7/24 at 12:14 pm to rpg37

quote:
Student loan interest being tax deductible also lowers the effective rate

I make too much to utilize this sadly

quote:
Paying it all off feels good emotionally and may be worth the stress to a lot of folks, but it is not normally the best route.

Right.. I would imagine so. I’ve been making the payments for years so I’m used to it … but it’s nice to know if I wanted to pay it all off , I could .

0 ...

Report Post

Posted by DaBeerz

Member since Sep 2004

17002 posts

Posted on 2/7/24 at 12:23 pm to rpg37

quote:
Student loan interest being tax deductible also lowers the effective rate.

Nope, seems would phase out at his income level, gets no deduction.

My vote is to Pay it off and start investing that payment instead. You could make up that amount in less than 5 years investing.

The interest savings and peace of mind will be worth it… I’ll have paid 200k + off by this time next year at 6-7% loans. But it’s taken me 10 years and over 50k in interest. Can’t wait for that weight to fall off my shoulders.

You could put it in Jepq and get around 1600 a month in dividends but you’d have to pay taxes on that.

This post was edited on 2/7/24 at 12:37 pm

0 ...

Report Post

Money Talk - Replies to Post

Return To Board

Page 1

Return To Board