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

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

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[quote=Anonymous][quote=Anonymous]I can never understand why people insist on dangling these loans around like they are actually disciplined enough to put the difference in a higher yield account. You can make more but are you actually making more? Or are you just spending the money?

For what it’s worth, I paid off my loans well before savings rates reached their more recent highs. For most of my debt repayment period, I’d be lucky to get 2-3% in online savings, and I didn’t qualify for any loan interest deductions. I invested in the market some, but those weren’t the kind of years that made you want to go all in. (Hindsight is 20/20 but past performance is no guarantee of future returns and all that). Paying off my loans gave me long term peace of mind and guaranteed returns even if I did not maximize every cent.

Id say throw whatever amount at it you wouldn’t miss and put a little extra in here and there until it’s paid off. [/quote]

OP here. It's not a question of discipline. I literally just have 21k sitting in a HYSA and I have nothing else to do with it. So it's just a question of whether it makes more sense to take that money and pay off the loan (saving me about 2k in interest over the next 11 years), or leave it in the HYSA (or shift it to a Vanguard fund, or put it in CDs, or some combination). Or I could pay off some of the loan now and invest the balance. Or I could just increase the monthly payment and keep the vast majority money saved/invested but save a bit in interest on the loan while making more in interest on the money.

The money won't be spent on anything else if I don't use it to pay off the loan -- I have plenty of other savings and my income is more than enough to cover my expenses.[/quote]

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