Student Loan Repayments

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pay them all off now and just live with very little savings

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Do this.

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going to grad school in a couple years and will likely end up with some more student debt

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Don't do this.

You shouldn't incur debt for graduate school. What type of program? Either keep your expenses very low and get a graduate assistantship OR find an employer who will pay for your schooling. Don't go into debt for graduate school.

Pay them now. Writing the check will be hard but it will feel great afterwards.

Maybe pay most of them now. For example, if you had 10k in loans, but it would deplete almost all of your savings pay 7.5k now. Put every extra dollar you can after that to the remaining 2.5k and put way less/none towards saving. This method may cost you a few extra bucks, but it gives you a little cushion in case something were to happen where you needed some cash and it would give you more peace of mind knowing you still had a little bit in the bank.

Just my 2 cents.

Sounds like you have a good plan. If the employer will help pay and has an immediate benefit, then it's likely a good move.

Pay cash now. If you are young and no family yet, even easier decision.

I paid off my wife's when we got married and I don't regret it one bit. This will put you in a better position to learn to save now. And if you wind up not liking your field, you won't have to be a slave to your debt

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pay them all off now and just live with very little savings



Do this.

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Slight hijack, instead of making a new thread. I'm in a similar position as I'm about to start having to pay mine back, and when budgeting trying to decide if it was better to pay what I need to get them paid off in 10 years but put less into savings, or pay less and extend the loan repayment and save more now.

3.5%

What’s the interest rate and how much student loan debt? Cannot answer the question without this information. Also, how much do you currently earn (e.g., are you phased out from deducting the interest?)

Generally, the correct answer is to pay them off as fast as possible but not always.

For example, I have a colleague who refinanced her student loans at 3.8% which is an amazingly low rate. She is likely best off paying the minimums and investing to difference. In the end, it is really about your risk tolerance and desire for returns on your money.

ETA: Now seeing your 3.5% rate. I wouldn’t be in a rush to pay that off especially if you can deduct the student loan interest. With deductibility, you may be sub 3.0% effective rate on the debt...that’s a great rate to find leverage.