Girl Trying To Pay Off Student Loans

Hi - so I just graduated and recently got hired. Currently I have about 45k in loans from college - $20,800 from ESCI with 6% interest rate per month and $25,200 in federal student aid ranging from 2-5% interest rate (I think fixed?). The $25,200 is not accumulating interest right now, and I don't have to start paying until end of November. 

Lets say I make 50k net income after food and rent. Should I just go ahead and pay off my student loans in one year? I am down to live frugally. Literally only debt I have is from college. I was thinking to go to the Virgin Islands for 6 months because technically work is remote and the cost of living here temporarily is almost the same as living where my job is. It's just the firm pays me for me to move, giving me up to $6k, but I can always move later. 

Or should I invest my money somehow and pay my student loans later? 

33 Comments
 

Thank you so much! I will look into refinancing the loans - I haven't heard of this option. But yea I hate debt and would rather get it over with. Lmao I wish I could save first - but my brother is a medical resident and his salary is shit and literally has no savings and is under budget so my priority is giving him 3,000 for a 2,400 loan he gave me back in 2015 :/ Maybe in 2 months I should save. I was ok with not saving first because if anything happens I can just go to my mom's house, but if she gets screwed over somehow, then yea its me just by myself. You are right. 

 

Because I knew that if I included the word "girl" I'd get more attention. And I'm just trying to obtain maximum output from my post. 

 

I don't see the point in underlying the fact you're a girl.

Your post does not look like a troll, but the title really suggests answers like "Go OnlyFans"

Took the words right out of my mouth. That or basically be a sugar baby (IE prostitute). Gender is otherwise completely irrelevant to how one goes about paying off debt.

 

Absolutely do NOT pay your loans in one year right now - you will be punished for being a responsible human being.

Given how much money the Democrats are throwing around, I would make minimal payments for now and wait to see if the Dems will pay at least $10K.  If you pay the loan yourself living frugally like a responsible citizen, you won't get shit.

Also, please don't take my post as a joke or as political. This is really something you should consider doing right now.

 

To add on to NoEquityResearch , given the amount of money the national gov is printing rn you’ll def be paying less (maybe even substantially less) if you wait this out once the payments are adjusted for inflation. That’s on top of the college educated kids votes the libs will try to buy through cancelling out some debt. 

Edit: This advice is for your 2-5% loan assuming it’s fixed (and honestly how did you sign a loan going into finance without even knowing the structure of the loan you signed for)

Array
 

I'll share a slightly different opinion - so the logical & rational thing to do from a pure economic standpoint is to not pay off the debt as long as you can invest making more, but... there is something to be said for how the debt makes you feel. If you feel nothing about it that's fine. I just know that when I had tens of thousands in student debt, it felt like there was a heavy weight on my back and it made every day just a bit less fun for me whenever my mind would wander to thinking about it. I paid it off as soon as I could after starting work and have 0 regrets. Do not plan on being in debt ever again the rest of my life, including for a house :) YMMV

 

So you're saying Im better off investing the money that I would otherwise pay towards my student loans if I were to pay student loans off within a year, since the method of investing will lead to a higher net money amount? (in a pure economic standpoint). And that's so impressive you paid it off immediately - good for you!! :) 

 

It's pure math - if interest is 2-3% and you can make ~6-10% investing in the market... then the difference is profit. Shift interest and investing amounts accordingly depending on your personal situation ofc (I noticed a comment that you have debt with interest much higher than 2-3%/year - if so please attack it with a vengeance or it will grow faster than your savings does). Once again, pure economic standpoint - no emotions/feelings in that at all. And fair enough, good idea to have an emergency fund. Good luck paying off the students loans - I felt like when I finished paying that off, it was a significant life milestone :)

 

jorbanana56

$20,800 from ESCI with 6% interest rate per month 

6% per MONTH??? damn girl get out of this first

"If you always put limits on everything you do, physical or anything else, it will spread into your work and into your life. There are no limits. There are only plateaus, and you must not stay there, you must go beyond them." - Bruce Lee
 

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