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Reply to "How should I pay off $300k in student loans?"
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[quote=Anonymous]What I would do: calculate the Present Value of the future stream of payments you are likely to have to make before the money is forgiven. For the discount rate I would use the interest rate you can get elsewhere, e.g. 3 percent if you have equity in a house to borrow against. Then compare that amount against the nominal debt outstanding. If you owe 300k, but will have to make payments with a Present Value of 400K, I would try to refinance and pay down as quickly as possible. If you owe 300K but are likely to only have to make payments with a Present Value of 200K, then just pay the minimum and wait for it to be written off. This is simple to do in excel.[/quote]
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