No. of Recommendations: 0
I have my student loans locked in for 30 yrs at 2.85%/3.15%. I have absolutely no reason to pay those off early. Rates are certainly higher today but there are also many low interest means to lock in rates for life. Heck, even my credit card offers 3.9% for life on convenience checks. Assuming a person is discipled, I would certainly recommend they use available credit if they can find a low rate and save for retirement while they are young. 5-10 extra years of savings can turn a 500K retirement account into a $1 million retirement account. That little bit of college loan will not likely cost as much as the person would gain in retirement savings.

This was more along my original line of thinking, thanks for the input. Obviously your loans are a much better rate than mine, but upon graduation I can save some from consolidation, although I will most likely not get them as low as you have, although you never knew what rates will be like in the futre...As far as attempting to lock in the debt low rate now, are there any avenues you would recommend I pursue? My credit score is only ~680, so I only have so many options.

I created an excel sheet and calculated the difference in investing a lump $20k sum in 401k now and no more until after grad school, or no lump sum invested and the same maxing in 401k after grad school and the two curves for wealth accumulation follow eachother, but the final accumulation in 20 years is $967,000 vs. $821,000 is a 10% rate of return is earned. This would be using $20k of what I have now for investing and using the rest of the money I make during school for school. I can do this, or essentially use that money to pay for the next two years of schooling (since I am pay half).

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.