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Personal Finance 14w
Should I pay off my student loans? I have $17K of loans ranging from 3.5%-4.2% interest. Currently have about $120K liquid
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11
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Anonymous 14w

Yes pay it off and invest the rest

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Anonymous 14w

Why tf would you keep loans accruing interest when you have more than 6x that in savings?

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Anonymous 14w

if it were me i would just pay the minimums every month. you can get more returns from a hysa or investing than the loan interest

upvote 2 downvote
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Anonymous 14w

Simple interest or compounding?

upvote 1 downvote
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Anonymous 14w

Yes yes because of your credit score

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Anonymous replying to -> #2 14w

I mean my high yield savings is earning 4.8% right now but I’d kind of prefer to just be debt free. I considered paying them off a few years ago but Biden was promising loan forgiveness so I kind of just put it on hold

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Anonymous replying to -> OP 14w

Mathematically speaking you should probably not pay them off lump sum, but behaviorally I would. In fact, I did and I don’t regret it one bit.

upvote 4 downvote
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Anonymous replying to -> #4 14w

Tbh either way theyre lower interest than what youre getting in your savings, just pay the minimum and let your savings grow faster than your debt

upvote 3 downvote
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Anonymous replying to -> #5 14w

It will drop my credit score by a lot if I pay them off because it will drop my average age of accounts

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Anonymous replying to -> #5 14w

I already own a house though so I’m not too worried about a hit to my credit score in the short term

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Anonymous replying to -> OP 14w

HYSA will probably dip below loans % interest and at that point I’d just pay the loans. 4.8% is extremely high

upvote 1 downvote