Sad to say but I have been paying on a student loan for ten years and still have a balance of almost $50K; the interest rate is 9%. i just bought a house and have a mortgage with a 3.5% interest rate. No other significant debt. As a result of the sale/purchase I now have the cash to pay off the student loan. Should that be my first priority, or would it be be best to pay a big chunk of principal on my mortgage, or otherwise invest? I'm 47 years old.
Thanks, all, for any suggestions!
Thu Apr 11, 2013 5:00 am
Wino Senior Member
Cash: $ 113.80
Joined: 03 Aug 2012
This is a no-brainer. Pay off the student loan. It is not bankruptable, so you must pay it off. It can never be negotiated because it is guaranteed. You need to get rid of it as soon as you can.
Thu Apr 11, 2013 7:59 am
oldguy Senior Member
Cash: $ 717.80
Joined: 21 May 2006
quote: or would it be be best to pay a big chunk of principal on my mortgage
And NEVER prepay a 3.5% longterm loan, instead apply your income stream to it's highest and best use. Eg, invest where you will earn 10% to 12% and keep that 3.5% loan forever.
Thu Apr 11, 2013 1:41 pm
Cash: $ 381.25
Joined: 09 Feb 2009
You don't need the government garnishing your wages should you lose your job and still have student loans. Be gone Sallie Mae or whatever!
Risk comes from not knowing what you're doing. (Warren Buffet)