Why You Shouldn't Pay of Student Loans Early
My wife and I both recently finished with graduate school. The majority of our friends and colleagues are in the same situation. And with this pursuit of education also comes student loans for most. I was fortunate enough to be in a program that not only paid for my tuition, but gave me an annual stipend over $20,000. My wife was not as fortunate and accrued a good bit of student loan debt. One of the things that I keep telling her is that we are not going to scrape all of our money together over the next 5-10 years just to pay our student loans off early. And she keeps saying; 'but I don't want that kind of debt around!'. And so I figured if she is confused as to why we're not paying it off, then I should explain it to you the reader.
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Paying off your debt is one
Paying off your debt is one of the best investments you can make, though as you mention, it greatly depends on your rate and type of loan. Many student loans aren't government only and many can't be deferred or have such low interest rates. I like the idea, but I wouldn't make such a general statement and would just add that it is very individual and you must look at your situation.
Interesting take, but makes
Interesting take, but makes sense. Why pay off the low debt when you can turn around and be making 2, 3, or 6 times that in the market. Most of the time I would suggest paying off debt as that is an automatic return, but many government student loans carry such a low rate, that it isn't a great return to pay it off early.