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Started By
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Student Loan Repayments
Posted on 11/17/17 at 12:41 pm
Posted on 11/17/17 at 12:41 pm
(no message)
This post was edited on 1/25/18 at 12:38 pm
Posted on 11/17/17 at 1:00 pm to Yeti_Chaser
Pay them off now.
Save and pay cash.
quote:
I do have intentions of going to grad school in a couple years and will likely end up with some more student debt down the road.
Save and pay cash.
Posted on 11/17/17 at 1:27 pm to Yeti_Chaser
quote:
pay them all off now and just live with very little savings
Do this.
quote:
going to grad school in a couple years and will likely end up with some more student debt
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.
Posted on 11/17/17 at 7:21 pm to Yeti_Chaser
quote:
I could pay them all off now and just live with very little savings.
Posted on 11/17/17 at 7:27 pm to TigerintheNO
Pay them now. Writing the check will be hard but it will feel great afterwards.
Posted on 11/17/17 at 7:50 pm to Brian Wilson
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.
Just my 2 cents.
Posted on 11/18/17 at 12:27 am to Yeti_Chaser
If you have a job out of school, why would you go to grad school?
Posted on 11/18/17 at 10:26 am to schwartzy
(no message)
This post was edited on 1/25/18 at 12:39 pm
Posted on 11/18/17 at 4:46 pm to Yeti_Chaser
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
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
Posted on 11/18/17 at 10:58 pm to Yeti_Chaser
What is the interest rate?
Posted on 11/20/17 at 11:13 am to lnomm34
quote:
pay them all off now and just live with very little savings
Do this.
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.
Posted on 11/20/17 at 12:07 pm to lionward2014
It only makes since to not pay them if you are going to earn a higher rate on the savings. I personally would not pay 5%-7% (just guessing here) to keep the money in a savings account earning 1%. Now if you plan to invest that money it might make since if you think you can earn a better post tax rate.
Posted on 11/20/17 at 12:16 pm to lionward2014
Do the standard 10 year payment plan if you can manage to. Yeah you can do the IBR payment and kick the can down the road, but you'll probably be making payments that won't even cover the accrued interest every month. Pay as much as you can now.
Posted on 11/20/17 at 2:32 pm to Yeti_Chaser
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.
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.
This post was edited on 11/20/17 at 2:35 pm
Posted on 11/20/17 at 2:37 pm to Yeti_Chaser
quote:
3.5%
With that low of an interest rate, I might consider paying off half or less and using the rest on other investments.
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