How to pay off student loan

bluebayou
Wed, 15 Jul 2020 04:09:34 +0000

It depends on what your $19k is doing/for. If its part of your emergency fund, then I might pay off school loans a little more slowly, based on your own cash flow as Thumper did. With COVID, few jobs are secure.

(we did something similar – coulda cashed out some investments and paid off the loans right after graduation, but chose to keep our investments intact – and avoid cap gains taxes – and pay the loans out of monthly cash flow.)

OTOH, if your $19k is savings and just sitting in a passbook account earning near zero interest, pay off the loans any time that you can. The interest saved on the school loans is equivalent to a guaranteed investment return.