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Started By
Message
Debt payoff questions
Posted on 12/21/20 at 8:19 am
Posted on 12/21/20 at 8:19 am
I have three loans right now...
$13k loan through USAA at 1.99%
$23k left on my car loan at 2.25%
$50k in federal student loans at ~5%
I can pay all off tomorrow, but with Biden there's a lot of talk about some sort of forgiveness. Also, haven't had to make any student loan payments since the summer.
My other two loans are paid via my monthly military drill pay.
What should I do? Part of me just wants to keep making payments, way to see what shakes out with the federal loans, and invest what I'd spend to pay everything off.
$13k loan through USAA at 1.99%
$23k left on my car loan at 2.25%
$50k in federal student loans at ~5%
I can pay all off tomorrow, but with Biden there's a lot of talk about some sort of forgiveness. Also, haven't had to make any student loan payments since the summer.
My other two loans are paid via my monthly military drill pay.
What should I do? Part of me just wants to keep making payments, way to see what shakes out with the federal loans, and invest what I'd spend to pay everything off.
14
Posted on 12/21/20 at 8:39 am to TheOcean
If you're not going to pay off that 50k at 5% now and let it ride, refinance immediately when the federal interest stops being 0%.
You should be able to get a <1% rate and continue as you are now if you're going to invest the difference.
Or you could just pay everything off now
You should be able to get a <1% rate and continue as you are now if you're going to invest the difference.
Or you could just pay everything off now
Posted on 12/21/20 at 8:40 am to TheOcean
quote:
Part of me just wants to keep making payments, way to see what shakes out with the federal loans, and invest what I'd spend to pay everything off
This.
Posted on 12/21/20 at 8:51 am to metallica81788
Yeah, but if I refi then I would lose out on any federal benefits (forgiveness/reduction, etc)
Posted on 12/21/20 at 9:18 am to TheOcean
Yes you would, but that's up to you and your crystal ball.
Posted on 12/21/20 at 9:33 am to TheOcean
You have a job. Biden not forgiving you
Posted on 12/21/20 at 9:41 am to metallica81788
quote:
If you're not going to pay off that 50k at 5% now and let it ride, refinance immediately when the federal interest stops being 0%. You should be able to get a <1% rate and continue as you are now if you're going to invest the difference.
I am interested in learning where you are getting less than 1% interest rate on student loans. Fixed rates I am aware of are about 3.5%.
Where can you get less than 1%? Thanks in advance.
This post was edited on 12/21/20 at 9:45 am
Posted on 12/21/20 at 10:05 am to go ta hell ole miss
I did a variable 5 year with Sofi locked in at ~1.9% but with all the LIBOR fluctuation it's been at ~0.55% for the past 6 months.
Posted on 12/21/20 at 11:15 am to TheOcean
quote:
$50k in federal student loans at ~5%
Posted on 12/21/20 at 11:52 am to metallica81788
Awesome. Thanks.
ETA:
Variable. I see now. I was referring to fixed. Thanks for the info, though.
ETA:
Variable. I see now. I was referring to fixed. Thanks for the info, though.
This post was edited on 12/21/20 at 11:53 am
Posted on 12/21/20 at 1:19 pm to TheOcean
Pay back the money you borrowed and stop looking for government handouts.
Posted on 12/21/20 at 1:32 pm to jfw3535
Why would I not take advantage of free money?
Posted on 12/21/20 at 3:15 pm to TheOcean
quote:
but with Biden there's a lot of talk about some sort of forgiveness.
Undergrad or grad school?
I feel like if Biden makes any move to forgive, it's going to be income based and probably only undergrad loans.
Posted on 12/21/20 at 5:33 pm to TheOcean
quote:
but with Biden there's a lot of talk about some sort of forgiveness
Look no further than this to see what’s wrong with this country.
Posted on 12/21/20 at 5:48 pm to LSUFanHouston
Actually a mix of undergrad and post grad
Posted on 12/21/20 at 6:56 pm to FlyFisherman
quote:
Look no further than this to see what’s wrong with this country.
What’s actually wrong with the country is greed leading to nearly $2 trillion in student loan debt. No fricking reason it should be so outrageously expensive to go to college to better your future. Tuition rates increases are more than 5x overall inflation over past 40 years. Not to mention a lack of education at a much earlier level on interest and a variety of other financial matters.
How on earth is it a good system to drive young people, the future of the country, into crippling debt as they enter adulthood? Imagine what these millions could accomplish and contribute to the economy w/o this albatross around their neck.
Posted on 12/21/20 at 7:01 pm to FlyFisherman
quote:
Look no further than this to see what’s wrong with this country.
People say this and then defend Trump for not paying taxes
Not sure why OP wouldn’t consider the option of student loan forgiveness if it comes about, just like Trump was smart to pay as little taxes as possible through what the governments tax code allowed.
To OP - I’m in the same boat. $35k in federal student loans. I’m going to keep making the minimum payments and invest excess money. Wait it out a bit and see what happens with loan forgiveness
This post was edited on 12/21/20 at 7:03 pm
Posted on 12/21/20 at 7:04 pm to TheOcean
quote:
$50k in federal student loans at ~5%
Pay this off tomorrow. You are bleeding bad!
If you have $86,000 dollars in the bank right now, that means you are broke.
There is a financial debt cloud over your head right now. It brings you stress and is a constant nagging problem. Get rid of your problems. Stop acting like you are rich. You are poor.
Posted on 12/21/20 at 7:11 pm to TheOcean
Every day you cary that 50k of debt you are buying your creditor lunch every day of the year. $6.84. Even on Christmas and easter. Buy your own lunch, not a millionaire.
Posted on 12/21/20 at 7:11 pm to Mud_Till_May
quote:
If you have $86,000 dollars in the bank right now, that means you are broke. There is a financial debt cloud over your head right now. It brings you stress and is a constant nagging problem. Get rid of your problems. Stop acting like you are rich. You are poor.
Okay Dave.
$36k of his debt is at 2.25% or lower and the rest will be potentially forgiven.
Look, some people psychologically can’t handle debt. Some people can. That’s something OP will have to consider for himself. But if he can handle his debt payments and any stress associated, he’ll be much better in the long run by investing his $86k instead of paying off debts.
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