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Established Member
Posts: 21
Registered: ‎06-09-2012
0

Pay Extra Toward Student Loans?

Hello everyone,

 

I'm looking to you for some advice.  I literally just mailed in my last car payment so the only debts I have are:

 

Mortgage @ 3.625% - $164,500

Student Loans @ 6.46% (blended rate) - $44,000

 

After paying my bills, using some money for 'fun', and contributing about $700/month to our 401k's, we will have about $2200 remaining each month.  We currently have about $15k saved.  My question is, what do you think the best strategy is with our money and debts?  I am thinking of paying an extra $1,000 toward my student loans each money until they are paid in roughly 2.5 years.  This will allow for us to save the remaining ~$1200 mixed between increased 401k, investments (stock, ETF, etc.), and cash.

 

What do you guys think about all this?

Super Contributor
Posts: 9,674
Registered: ‎01-28-2010
0

Re: Pay Extra Toward Student Loans?

 

Eliminating debt is always a good idea ~ I agree that paying the student loans down is a good approach.

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Frequent Contributor
Posts: 399
Registered: ‎04-30-2008
0

Re: Pay Extra Toward Student Loans?

I totally agree about paying off that Student Loan as fast as possible.

 

Good luck

 

Regular Contributor
Posts: 146
Registered: ‎02-06-2009
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Re: Pay Extra Toward Student Loans?

That's what I would do!  Student loans are the only non-dischargeable debt.

 

And I should know! Smiley Very Happy

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Moderator
Posts: 13,897
Registered: ‎04-15-2011
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Re: Pay Extra Toward Student Loans?


Cleanmachine wrote:

I totally agree about paying off that Student Loan as fast as possible.

 

Good luck

 


I agree, getting that monkey off your back would feel good!

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New Visitor
Posts: 2
Registered: ‎08-29-2013
0

Re: Pay Extra Toward Student Loans?

Always take out the one with the highest interest rate first! That being said pay extra on the student loan!

New Contributor
Posts: 72
Registered: ‎09-25-2013
0

Re: Pay Extra Toward Student Loans?

Depends on when you graduated.  IF recently, and loans are in deferment than pay on the UNsubsidized; interest just keeps compounding. If you are beyond that period, pay more than the minimum payment if you can. Student loan interest compounds DAILY! Good luck!


Starting Score: 525
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700+ across the board

Frequent Contributor
Posts: 439
Registered: ‎03-23-2013
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Re: Pay Extra Toward Student Loans?

I would use the extra money to pay off the student loans.

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