Should I pay off my loans?

[Sk323i]

With all the crazyness ?

SHould i pay off my loans while they are owned by the Dept. of Ed?

Or should I wait and see if Trump is going to transfer this to The Dept. of Commerce, and then pay them off?

I have 10 different loans totalling 43K - both subsidized and unsubsidized loans - at an average of 4%

I could pay them off with an upcoming bonus.

Or i could just continue to pay the $500 monthly payment, and see if they get moved to new government agency, and continue to pay.

WHats the best thing to do?

[FlaDude]

Certainly if any of us had an accurate crystal ball, we'd be rich, so we're guessing just like you are. I doubt the current administration will forgo any student loan debt, so no matter where it ends up, it will still be due. Given the haphazard and disorganized way that things are being handled, it's possible that records of the debt would be lost, but I would not count on that. Personally I would guess that the opposite will be true, records of debt being paid will be lost and a lot of people will be pursued for debt that has already been forgiven or even just paid off the normal way.

[Sk323i]

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@FlaDude wrote:

Certainly if any of us had an accurate crystal ball, we'd be rich, so we're guessing just like you are. I doubt the current administration will forgo any student loan debt, so no matter where it ends up, it will still be due. Given the haphazard and disorganized way that things are being handled, it's possible that records of the debt would be lost, but I would not count on that. Personally I would guess that the opposite will be true, records of debt being paid will be lost and a lot of people will be pursued for debt that has already been forgiven or even just paid off the normal way.

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i agree. cant trust anything anymore. So in this scenario, one should be in no hurry to pay back a Fed loan, because the record keeping may show the debt is still owed anyway. best to leverage capital in other areas, and be indebted to gov for decades. 

[Realist]

The number of student loans is why we went private over federal.  It's all a numbers game.

This administration isn't going to dismiss anything.  The rate you have, and the term you own is still in effect.  Your ability to pay off in full, is admirable.  But, should you?

With my kids loan, we know what we owe monthly.  Has enough to pay it off, but also will interchangeably put it into a 4.xx percent CD, that may likely rise overall in a deleveraging economy.  That CD will earn immediately almost enough per month, to offset the lenders monthly payments.

As time goes by, the debt becomes extinquished.  The contribution to the CD increases, and the valuation increases.  And most important of all - the money stays accessible in the hands of those that own it 100% of the time.  The debt was near neutered from day one, while controlling the entire amount of capital.  It makes no sense not to run the entire loan out to maturity, while invested into another asset, unless for the satisfaction of pay off alone.