Saturday, April 08, 2006
Worthwhile to payoff off student loans?
I am debating whether or not to pay off my student loans. I owe about $1800, the remaining amount of the $3000 I borrowed so I could avoid getting a job my senior year. I can't seem to find the interest rate anywhere but I know from my taxes I paid $83 in interest this year. I am thinking that with such a low interest rate and a monthly payment of $50 there is no reason to rush. I can do a lot of other, more exciting things with the $1800. I'm thinking of increasing my monthly payment to $75 or $100 a month instead of dropping the whole $1800. Does that make sense or should I just pay it off? Anyone have any thoughts?
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1 comment:
It depends on if you have any other debt. The interest on student loans is generally around 5%, so if you have any credit card or installment debt with higher interest, you'd be better off putting the money towards those. If the loan is your only debt though, you might as well pay it off if you have the means and then take the $50/month you were paying and putting into savings or a retirement fund. I wish I only owed $1800!
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