Should i pay off my student loan in full?

I’m wondering if I should pay my student loan in full within 2 years or just do the regular monthly payment of $170 for 10 years?

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  • With how high the intrest rates could be? Hell yeah pay that off as soon as possible.

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  • Maybe make larger payments than you have to but keep in mind that if you pay it off all at once, what if some emergency comes up and you need that money in the near future. That is unless you have enough money that paying off your student debt all at once will not ultimately hurt your finances.

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    • That’s true. That’s def something I have to keep in mind. Thank you!

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  • Remember, no payments are required on student loans until August 31st, 2022. And I'd hold off on paying student loans as President Biden is going to probably forgive some or all of a person's education loan debts. I'd wait at least a year or two. Apply for a pay as you earn or income based repayment plan with your loan servicer, as after 240 payments the amount is forgiven. And based on your income, some monthly payments could be 0.00.

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    • So my estimated annual income would be $70K in California. Do you think I’m still eligible for that if I do pick the income based repayment plan?

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      • https://studentloanhero.com/calculators/pay-as-you-earn-calculator/

        https://studentloanhero.com/calculators/student-loan-income-based-repayment-calculator/

        Above are some calculators to help figure out which plan is best for you to apply for. Yes, with 70,000 in income, you would probably still qualify for these programs. You can call your loan servicer to apply.

        Also, I do think President Biden will, before his term ends in 2024, forgive a good chunk of student loans.

        I would hate for you to pay in full (say 25,000) student loans and then in 2023, Biden forgive or wipe out 10,000 to 30,000 for every student loan borrower. You would have lost 25,000 that you could have saved for a house down payment, travel, or retirement.

        Please, please wait until at least Biden in out of office.

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  • I would, it's good to get it out of the way. Plus then after paying it off, it'll suddenly seem like you're earning much more than you were before.

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  • I graduated from college many moons ago. I was fortunate enough to have parents with the means to put me and my sister through college. I am at a loss as to understand why debt accrued while putting yourself through college should be forgiven. If the government chooses to forgive you so be it, but any loan you obtained from a private institution you should have to pay back. You knew full well that college was not free, just like when you purchase a home or car, it is expected that you will pay that loan back.

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  • If you can afford to pay it off in full, do.

    If you haven't reached the minimum threshold to start making repayments yet, don't worry as eventually your student debt will be written off.

    If you can't afford to pay it off in full, but your salary has triggered the threshold for making repayments, pay the monthly interest.

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  • the longer you take to pay it off, the more money you end up paying each year in terms of interest.

    pay off as much as you can as quickly as you can without draining all your accounts in one go.

    rainy day funds exist for a reason.

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  • If you can pay it off in two years or less, do that. You can't deduct the loan interest so there is no advantage in dragging it out and paying it.

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  • Do it asap

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  • Definetly pay it back. It can become too tempting to spend money you don't own

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    • That’s a good mindset:)

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  • Depends on the kind of loan you have. Some can help you establish good credit, especially if it's low interest. Which will give you better offers for future loans for say, cars and houses. But if interest is high, pay it off quickly.

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    • I already forgot what the interest rate is but on their website their interest ranges from 2.44-7.99%. Is that high?

      Ty!!

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      • No, that's decent. Anything under 5% is good, provided you don't miss payments. Banks like to see that you can pay loans and will be a good customer, a repeat customer. But you don't want too many loans either.

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        • Thank you so much!!

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  • is there any interest saved if you pay it off early like with a mortgage or is it a fixed amount?

    is there any potential tax advantage for a one year payoff in a large amount? are you gettin any tax writeoff on it presently?

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    • That’s a good question. I should probably contact them and ask. But I think I opted for fixed amount i dont remember why

      Ty!!

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