Making lump sum payments on student loan debt- wise or unwise? - Page 2 - TigerDroppings.com

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Teddy Ruxpin
LSU Fan
New Orleans, LA
Member since Oct 2006
18807 posts
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re: Making lump sum payments on student loan debt- wise or unwise?


quote:

but part of me says frick it, spend what you want and pay the minimum and enjoy your life. but that is only if you aren't thinking of public office down the road


Ya, a big part of me has said the same thing for quite a while. I only get one shot on Earth and already made one big mistake, but frick if I'm gonna sit in my house for 30 years. Life is a flash in the pan until you're dead.

I'll never make it to public office. I'm too crass.

quote:

Nothing would grind my gears worse than living like a poorie for 5 years crushing out this debt only to have the gov enact some ridiculous legislation forgiving it after 10


The moral hazard, etc. I'd be furious once I went in full bore. So would a lot of people. I scoff at 30K-50K in student loans. That wouldn't even stir me in my slumber to pay that off.



This post was edited on 1/7 at 12:18 pm


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Maniac979
LSU Fan
The Great State of Texas
Member since Jan 2012
400 posts

re: Making lump sum payments on student loan debt- wise or unwise?


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This post was edited on 1/12 at 8:33 pm


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jclem11
TCU Fan
Houston, Texas
Member since Nov 2011
2926 posts

re: Making lump sum payments on student loan debt- wise or unwise?


quote:

Say you have a consolidated student loan of about 200K with an interest rate of 7.1%.


I feel fortunate to just have had $17K total. The balance is down near $10.5K. It should be paid off within the next 14-18 months.

I agree with not living like a poor for 25 years. You only live once.






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Ric Flair
LSU Fan
Charlotte
Member since Oct 2005
7228 posts

re: Making lump sum payments on student loan debt- wise or unwise?


quote:

I have a term life policy that will supplement my retirement income down the line.


Agree with the other poster that you need to clarify this. Sounds like a whole life policy, which I wouldn't buy with that much debt on board. I wouldn't even carry life insurance until you get married (assuming no one cosigned your loans).

I would knock out the 8% or above loans if you can swing it easily. Maybe take 3 months of your emergency fund to knock it down, and use 3 months for a home down payment savings.






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theOG
Oklahoma Fan
Member since Feb 2010
4353 posts

re: Making lump sum payments on student loan debt- wise or unwise?


quote:

I'd take the route of most young lawyers and spend the emergency money on a 911CS.


what the hell kind of young lawyers do you know?






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Jwodie
LSU Fan
New Orleans
Member since Sep 2009
5663 posts

re: Making lump sum payments on student loan debt- wise or unwise?


quote:

Agree with the other poster that you need to clarify this. Sounds like a whole life policy, which I wouldn't buy with that much debt on board.


You may be right in that it's a whole life policy. Regardless, it's only $100/mo. and carries a cash value that I can withdraw at any time so it's fairly liquid.

quote:

I wouldn't even carry life insurance until you get married (assuming no one cosigned your loans).


Again, the only reason I even bought the policy was because it "turns into" a supplemental source of retirement income that I can withdraw from like a savings account once I get to a certain age. It merely doubles as life insurance policy (I have a young nephew with a POS baby daddy so he's the beneficiary).

quote:

I would knock out the 8% or above loans if you can swing it easily. Maybe take 3 months of your emergency fund to knock it down, and use 3 months for a home down payment savings.


I'm going to start chipping away at these 8% loans per everyone's advice. Seems like a wise decision despite not wanting to part with my liquid savings...



This post was edited on 1/7 at 2:07 pm


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Maniac979
LSU Fan
The Great State of Texas
Member since Jan 2012
400 posts

re: Making lump sum payments on student loan debt- wise or unwise?


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This post was edited on 1/12 at 8:32 pm


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Teddy Ruxpin
LSU Fan
New Orleans, LA
Member since Oct 2006
18807 posts
 Online 

re: Making lump sum payments on student loan debt- wise or unwise?


While that is how the pay works, that sounds incredibly stupid.





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