Comments on: Making Student Loan Payments Affordable http://www.greenpandatreehouse.com/2009/11/making-student-loan-payments-affordable/ Personal Finance for College Students and New Graduates Fri, 19 Mar 2010 17:04:33 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Financial Samurai http://www.greenpandatreehouse.com/2009/11/making-student-loan-payments-affordable/comment-page-1/#comment-40403 Financial Samurai Sat, 21 Nov 2009 17:55:57 +0000 http://www.greenpandatreehouse.com/?p=6404#comment-40403 Howdy EoW - My loans are consolidated and at 2.6%. I've actually got a much larger chunk of change sitting in muni's, and 5-yr CD's earning about 4.2%. You can check out my post on <a href="http://www.financialsamurai.com/2009/10/02/the-only-cd-strategy-to-employ-for-maximum-retur/""The DVD Method to CD Investing". The thing is, I JUST got about $60,000 in company stock last week, and of course now rates are pitiful, even the 5-yr at 2.75%. I don't know, I just love having as big a war chest as possible when something really enticing comes a long (private equity or whatever). The student-loan is not tax-favorable at all, since the gov't doesn't allow people to write the interest off if you earn more than some ridiculously low amount. Thnx for your thoughts! Howdy EoW – My loans are consolidated and at 2.6%. I’ve actually got a much larger chunk of change sitting in muni’s, and 5-yr CD’s earning about 4.2%. You can check out my post on <a href="http://www.financialsamurai.com/2009/10/02/the-only-cd-strategy-to-employ-for-maximum-retur/""The DVD Method to CD Investing".

The thing is, I JUST got about $60,000 in company stock last week, and of course now rates are pitiful, even the 5-yr at 2.75%. I don’t know, I just love having as big a war chest as possible when something really enticing comes a long (private equity or whatever).

The student-loan is not tax-favorable at all, since the gov’t doesn’t allow people to write the interest off if you earn more than some ridiculously low amount.

Thnx for your thoughts!

]]> By: Evolution Of Wealth http://www.greenpandatreehouse.com/2009/11/making-student-loan-payments-affordable/comment-page-1/#comment-40400 Evolution Of Wealth Sat, 21 Nov 2009 17:43:48 +0000 http://www.greenpandatreehouse.com/?p=6404#comment-40400 I almost always recommend consolidating student loans. A forbearance can allow also allow you to temporarily stop making payments. The biggest difference between a deferment and forbearance is that with a deferment the government pays the interest on all subsidized loans. @Financial Samurai I wouldn't be in a hurry to pay off a tax-favorable loan either. My bigger concern for you is having that much money in a bank earning 2%. But I don't pretend to know your financial situation and you seem like a pretty smart guy so I'm guessing you know what you're doing. I almost always recommend consolidating student loans. A forbearance can allow also allow you to temporarily stop making payments. The biggest difference between a deferment and forbearance is that with a deferment the government pays the interest on all subsidized loans.

@Financial Samurai I wouldn’t be in a hurry to pay off a tax-favorable loan either. My bigger concern for you is having that much money in a bank earning 2%. But I don’t pretend to know your financial situation and you seem like a pretty smart guy so I’m guessing you know what you’re doing.

]]> By: Financial Samurai http://www.greenpandatreehouse.com/2009/11/making-student-loan-payments-affordable/comment-page-1/#comment-40385 Financial Samurai Sat, 21 Nov 2009 13:52:46 +0000 http://www.greenpandatreehouse.com/?p=6404#comment-40385 It's tough to say b/c at 2.6%, it's free money. I ask this question b/c this is the type of dilemma I face, but with slightly different #'s. I don't see my loan amount, I just get debited automatically every month. Maybe I'll accelerate the payment, but I just feel I'd rather have as much cash possible to do something with it than pay off a 2.6% loan. It’s tough to say b/c at 2.6%, it’s free money. I ask this question b/c this is the type of dilemma I face, but with slightly different #’s.

I don’t see my loan amount, I just get debited automatically every month. Maybe I’ll accelerate the payment, but I just feel I’d rather have as much cash possible to do something with it than pay off a 2.6% loan.

]]> By: Green Panda http://www.greenpandatreehouse.com/2009/11/making-student-loan-payments-affordable/comment-page-1/#comment-40378 Green Panda Sat, 21 Nov 2009 12:17:06 +0000 http://www.greenpandatreehouse.com/?p=6404#comment-40378 If I had $100,000 in the bank, I think I would pay off the student loan. If I didn't have a decent emergency fund, I'd hold off on paying the debt off. How about you? If I had $100,000 in the bank, I think I would pay off the student loan. If I didn’t have a decent emergency fund, I’d hold off on paying the debt off. How about you?

]]> By: Financial Samurai http://www.greenpandatreehouse.com/2009/11/making-student-loan-payments-affordable/comment-page-1/#comment-40309 Financial Samurai Fri, 20 Nov 2009 07:08:41 +0000 http://www.greenpandatreehouse.com/?p=6404#comment-40309 Just wondering, if you had $10,000 in student loans at 2.6%, but had $100,000 in the bank earning only 2%, would you pay off your student loan or just keep it since the rate is so cheap Just wondering, if you had $10,000 in student loans at 2.6%, but had $100,000 in the bank earning only 2%, would you pay off your student loan or just keep it since the rate is so cheap

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