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Should You Pay Off Student Loans ASAP?

Because 70 percent of you are dealing with student loans, a Motley Fool article called "Die, Student Loan, Die!" caught my eye. The article has some good tips on how to assess whether you should focus on putting more money toward savings or more toward student loans. Here's what they say you should consider when deciding whether or not to pay off student loans early.

  • Pay off ASAP if you're stuck in a high-interest private student loan, but sit on it if you're locked in a low, fixed-interest rate.
  • If the the interest you're paying is not tax deductible, pay off the loan ASAP.
  • Pay off immediately if you have enough cash to pay off your loans and still have money left over to start your emergency savings account.
  • Sit on your student loan if you have other higher-interest debt. Compare the interest rates on all of your debts to determine which should be paid down first.

Source

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thelorax thelorax 8 years
These are very sensible cost-benefit analysis tips!
Marni7 Marni7 8 years
OMG I really was thinking "die student loans die" this morning as I paid them online lol
TidalWave TidalWave 8 years
Yeah, I am much more worried about my high-interest car loan than my low-interest student loan especially since the student loan interest is all tax deductible.
HeidiMD HeidiMD 8 years
I started paying mine off the moment I got my first paycheck. Granted it wasn't very much, but every little bit helps. I feel like postponing and procrastinating just drags the process out, and some people will just never do it and let it accumulate.
ilanac13 ilanac13 8 years
i think that by paying off the loans, you'll not only build your credit but you'll put yourself in a better position for when you're ready to make those larger investments. like if you want to buy a house - at least the student loans will be far behind you -
Meike Meike 8 years
Of course, why pay more interest? It adds up over the years you continue to be in debt. Fortunately, I never had any debt. Scholarships/grants are great. The secret to going to school for free. Apply to over 20 scholarship. Haha.
chancleta chancleta 8 years
I dream of the day we can pay these off.We do have awesome interest rates though :)
chancleta chancleta 8 years
I dream of the day we can pay these off. We do have awesome interest rates though :)
GlowingMoon GlowingMoon 8 years
Hubbie and I paid-off our student loans early (about several years early). We were better off because of that.
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