Should I pay off this student loan now or just stick to schedule?

[Anonymous]

Pay it off and simplify your life.

[Anonymous]

If the interest rate is under 3%, why would you pay it off early if you can earn more in a HYSA? I agree with PP who says to pay them off only if your HYSA rate dips to a rate that’s lower than the loans.

I have about $6000 in undergraduate loans left to pay at about 2.6%. I was a Pell Grant kid who qualified for the Biden loan relief before that went away. I autopay the minimum amount per month and will continue to do so until they’re fully repaid, or I earn less than 2.6% in my accounts, or I die.

It’s not complicated. I could pay them off tonight, but why?

[Anonymous]

What is your HYSA rate, OP and what is your effective tax rate?

What is the net after tax rate on your $21k? What then is your delta between that and the 3% loan interest?

That is your big gain over paying off the loan.

Compare that to the extra you pay over 11 years.,