67
should I pay off my student loans in full before intrest kicks in? (lemm.ee)
submitted 1 year ago by giantofthenorth@lemm.ee to c/personalfinance@lemmy.ml
22 comments fedilink hide all child comments

General financials:

I can afford to pay them off in full and have plenty left over for general life needs

The interest rates on them should be 4.53% according to their chart of when it was awarded.

If I do hold onto the money and pay off monthly I can put everything into a CD but I'll still be losing .03% if I lock in the student loan money maybe I'll beat but .07-.43% so not a ton of upside unless there's sudden political will to actually follow through on student loan forgiveness.

Is there anything else I'm missing when considering this? I am leaning towards just pay off as I've been planning for this, but I want to make sure there isn't something else to do.

you are viewing a single comment's thread
view the rest of the comments
[-] yenahmik@lemmy.world 8 points 1 year ago

I think at that rate there isn't a bad decision. Pay it off for the peace of mind. Or, if you have a higher risk tolerance, invest it in the market, since long term it would likely return more than 4.5% (historically speaking, of course). I think keeping the money to keep it in a money market account or CD is probably not worth it, though.

[-] magiccupcake@lemmy.world 2 points 1 year ago

I'd be in favor of this approach too.

Another thing is that if for whatever reason you need that money you still have acess to it, but if you pay off your loans, you can't easily get it back.

this post was submitted on 31 Aug 2023
67 points (98.6% liked)

Personal Finance

3809 readers
1 users here now

Learn about budgeting, saving, getting out of debt, credit, investing, and retirement planning. Join our community, read the PF Wiki, and get on top of your finances!

Note: This community is not region centric, so if you are posting anything specific to a certain region, kindly specify that in the title (something like [USA], [EU], [AUS] etc.)

founded 1 year ago
MODERATORS
WandererLagomorph799@lemmy.ml
nieceandtows@programming.dev
nieceandtows@lemmy.ml