Pay off student loans or invest?
Posted 17 June 2012 - 07:27 PM
At this point, am I better off just paying off the loans and ending the interest?
Posted 18 June 2012 - 09:22 AM
that said, if this is your only debt you could figure out a repayment schedule to pay it off early. I know when I paid off my SL's early it felt very very good.
you probably want to max a ROTH IRA first, however, before rushing to pay off this low cost debt. Both once you are maxing pre- and post-tax retirement vehicles, paying off debt is a smart move since you know the exact return for doing so.
Posted 18 June 2012 - 04:19 PM
Check with your servicer to see what their terms are for paying additional payments on your loans. DL will only accept an additional one month payment (you can't send an extra $50 bucks) and you also have to notify them in writing on their form to not advance your payment schedule. If you don't specify 'don't advance', they will just say 'no payment due next month'.
Look at all your terms before you begin to prepay.
Posted 19 June 2012 - 09:50 AM
you probably want to max a ROTH IRA first, however, before rushing to pay off this low cost debt.
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