Anonymous
05/18/2013 09:51
Subject: How aggressive should we be about paying off student loans?
We focussed on student loans. Once those were paid, put the money we were use to living without into retirement savings and now are doing fine. No regrets.
Anonymous
05/18/2013 09:14
Subject: How aggressive should we be about paying off student loans?
What would Suze Orman say? I think she would say pay off the loan. You have enough in savings unless your partner's job is iffy.
Anonymous
05/18/2013 08:56
Subject: How aggressive should we be about paying off student loans?
Anonymous wrote:Anonymous wrote:Yes, you should pay it off aggressively, and prioritize this over saving anything. You are not going to get anywhere near a guaranteed 6.8 percent return from any investment you could make.
+1 this is my plan as well. Been paying $2000 a month on the student loans for about a year and will be done in September 2014 (started with $105k and I'm now 41). I'm maxing out my 401k and have my emergency fund, but that's it. It stinks, but the goal is short term and worth it to me to be able to say I paid them off. Once paid off I will put $500 into 2 529 plans and my Roth, and $500 into a general savings account.
Keep it up!!! You are almost done!!
OP here. Were you the OP from a different thread? If you are, you're the reason I even started thinking about this!
Anonymous
05/18/2013 08:24
Subject: How aggressive should we be about paying off student loans?
Anonymous wrote:Yes, you should pay it off aggressively, and prioritize this over saving anything. You are not going to get anywhere near a guaranteed 6.8 percent return from any investment you could make.
+1 this is my plan as well. Been paying $2000 a month on the student loans for about a year and will be done in September 2014 (started with $105k and I'm now 41). I'm maxing out my 401k and have my emergency fund, but that's it. It stinks, but the goal is short term and worth it to me to be able to say I paid them off. Once paid off I will put $500 into 2 529 plans and my Roth, and $500 into a general savings account.
Keep it up!!! You are almost done!!
Anonymous
05/18/2013 07:12
Subject: How aggressive should we be about paying off student loans?
Six months is not a lot of savings when you consider how long it may take to get another job if something happens. It took me over six months to find another job even when I was employed.
Anonymous
05/18/2013 05:53
Subject: How aggressive should we be about paying off student loans?
Anonymous wrote:Do you both work, and could you live on one salary if necessary? If not, you may need more than 6 months living expenses in savings before you start putting all your cash toward student loans.
I disagree. 6 months is a lot of savings to have on hand. saving money at close to zero percent interest when you are paying almost 7 doesn't make any sense. It is an extremely high price to pay for the additional liquidity it would give you.
Anonymous
05/18/2013 05:00
Subject: How aggressive should we be about paying off student loans?
Anonymous wrote:Do you both work, and could you live on one salary if necessary? If not, you may need more than 6 months living expenses in savings before you start putting all your cash toward student loans.
I don't work and right now, it doesn't make sense for me to work. Maybe we should have more in the bank. Definitely something to consider.
Anonymous
05/18/2013 04:26
Subject: How aggressive should we be about paying off student loans?
Anonymous wrote:Any way you can lower that interest?
OP here. Not that I'm aware of. I've spoken with the loan company and they make it sound like we can't consolidate or change the interest rates.
Anonymous
05/18/2013 03:06
Subject: How aggressive should we be about paying off student loans?
Do you both work, and could you live on one salary if necessary? If not, you may need more than 6 months living expenses in savings before you start putting all your cash toward student loans.
Anonymous
05/17/2013 23:05
Subject: How aggressive should we be about paying off student loans?
Any way you can lower that interest?
Anonymous
05/16/2013 23:51
Subject: How aggressive should we be about paying off student loans?
OP here. Thanks for the thoughts. Contributing to a matched retirement makes sense.
Anonymous
05/16/2013 23:12
Subject: How aggressive should we be about paying off student loans?
PP here - only caveat is that I would make sure you pay up to the match in your retirement first.
Anonymous
05/16/2013 23:11
Subject: How aggressive should we be about paying off student loans?
Yes, you should pay it off aggressively, and prioritize this over saving anything. You are not going to get anywhere near a guaranteed 6.8 percent return from any investment you could make.
Anonymous
05/16/2013 23:08
Subject: How aggressive should we be about paying off student loans?
I would pay it off aggressively because that's a pretty high rate. I have $55K left at 2.3% and I sort of just don't care about it....the interest is just so low I can do better things with my money at that rate.
But I wouldn't pay it off at the expense of meeting an employer match for retirement if you have that available.
But I wouldn't pay it off at the expense of meeting an employer match for retirement if you have that available.
Anonymous
05/16/2013 16:45
Subject: How aggressive should we be about paying off student loans?
We have 60k in student loans. 40k is at 6.8% interest. Right now, we are planning to pay the 40k off in the next 3 years. But that means we are not saving much (we have 6 mos of living expenses in savings) and not contributing towards retirement. Is this plan dumb? The only other debt we have is a mortgage.
We live within our means but really clueless about money.
We live within our means but really clueless about money.