AT out here forgiving student loans

Earlier this week I started buying some tsnp and wkhs for the long term hold. I don't have thousands of shares like some of you guys but I'm hoping that if they climb up into the high $100s like suggested in a few years I'll be in good shape.

Thanks AT

Personally why payoff something at a 5-7% interest rate when Biden may cancel them and/or you can make more than 5-7% in the market on an annual basis?

quote:

---

Curious, why wouldnt you sell and take that weight off your shoulders and then invest that student loan payment money for the next however many years you would have had left?

---

I'm at 4% interest rate average and TSNP is growing faster than that.

I think ultimately I am going to cash out but yes, waiting to see what Buyden does first. Although I have to imagine there will be an income cap on who qualifies for student loan forgiveness

I’m out here not making payments on mine until I’m required and only making minimum payments. I only have $10k left and I could pay them off, but at 3.5% interest and not paying any interest until Sept, I don’t see any reason to pay them. Plus the proposed student loan forgiveness seems to be hovering around $10k per person, which would cover me nicely

quote:

---

Personally why payoff something at a 5-7% interest rate when Biden may cancel them and/or you can make more than 5-7% in the market on an annual basis?

---

Excellent point!

quote:

---

Maybe my head cant wrap around the numbers, I feel like you can get much more out of that if you can invest all the money youd be saving for the years that you would be still paying.

---

Nah you want to put your money in whatever is getting you the biggest return. If his loans were higher than what he could get in the market then that’s when it makes sense to pay them off.

Plus if they’re federal loans then he’s not having to pay anything right now (he can definitely get more than 0% returns in the market) and there’s a good chance he’s looking at loan forgiveness (at least some portion).

quote:

---

I’m out here not making payments on mine until I’m required and only making minimum payments. I only have $10k left and I could pay them off, but at 3.5% interest and not paying any interest until Sept, I don’t see any reason to pay them. Plus the proposed student loan forgiveness seems to be hovering around $10k per person, which would cover me nicely

---

Yea I get that.

And honestly, I am in the same boat except Im gonna get absolutely raped by Biden and taxes when I finally cash out of crypto. So I think Ill be paying off mine unless I wait a couple years and get back to a lower tax bracket

quote:

---

Nah you want to put your money in whatever is getting you the biggest return. If his loans were higher than what he could get in the market then that’s when it makes sense to pay them off.

Plus if they’re federal loans then he’s not having to pay anything right now (he can definitely get more than 0% returns in the market) and there’s a good chance he’s looking at loan forgiveness (at least some portion).

---

quote:

---

You take all the money you would pay in lump sum for student loans and invest it. You pay student loans monthly for 10-25 years. Also, if you die the student loan debt is wiped out, so what is the rush to pay them when you can use the money in other places to make more money? You can also write off the interest if you itemize. Many with substantial student loan debt also itemize. That’s how I get my head around it. May not be the best idea, but it has been working for me.

---

Gotcha, thanks guys

I really asked because people have been asking me that about my investments.

And I feel like if I take out that large of an amount right now, then Im missing on a substantial amount of profit that I think is still possible.


And Im trying to balance that with the mental relief I would have of being debt free, at the same time knowing my personality and knowing Id be beating myself up over missing out on more.


Just trying to find more ways to justify it, thanks for coming to my Ted talk

quote:

---

I just trimmed some of my positions to pay off all of my unsecured debt. It’s a real good feeling.

---

Congrats man. best feeling in the world.

quote:

---

For me personally, I hate being in debt and I hate the monthly payments.

I’m aggressively paying off my loans because I hate them.

I know it might not technically be the best decision dollar wise but peace of mind is a big factor

---

I share this mindset. When you have an obligation floating out there, it feels like you have something that really needs to be done with that money and you’re neglecting it. Once those debts are paid, I know that money is mine and there is a freedom that comes with it.