I guess the title says it all.
Which would you choose if you had the option?
As student loan payments are about to resume, I have two options:
1. Pay aggressively pretty much 85% of my income to student loans. This leaves me no room to save for a home. BUT, this will make me student loan debt FREE in 1.5 years.
OR
2. Pay moderately, save around 40% of my income for a home purchase. This will take 4.5 years but of course I will pay much more in interest for those student loans.
Save some cash.
You can always pay later, but you might not be able to borrow later.
Of course, it all depends on amounts and interest rates, but you should have some savings even if you have a little debt.
BTW - student loans (with no lates) don't hurt your credit like credit cards or normal loans may.
IMO
The interest will crush me; I requested my loans be consolidated, and they are now sitting at 6%.
100k at 6% paid slower is making me tired just thinking about it.
I should mention, I did save some money during the pandemic which is why I have the leverage to go all in on student loans. It is just a matter now of "Should I save more" before I pay all student loans.
6% is nothing right now.
You can earn 4 or 5% on CDs.
GL!