I am 23 and just graduated from college this past year. I make 30,000 a year and try to save at least 300-500 a month. I also put 6% of my pay into my 401k account. Between the last two months I have put 6,000 into my Roth IRA account maxing out my contributions for 03 and 04, which was money I had made this past summer. My only debt right now is 16,000 in college loans. My question is this. After I condolidate my loans my interest rate will be 2.3% and my payments will be about 100 a month. I feel as though I should only put the minimum 100 in each month expecting to recieve a higher rate of return on my investments. I predominantly invest in two Vanguard funds (The total market and Reit funds.) Does this logic make sense? I know from reading over the boards that several fools encourage paying off debt as soon as possible, but with such a low interest rate I feel as though I should just let it ride out. Any ideas would be greatly appreciated.
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