To pay off or not to pay off?

Hey Monkeys - 


Was fortunate to have a solid year this year and will be able to pay off what's left of my undergrad loans as well as all of my B School loans (think $150k+ combined). 


Curious as to what some of the guys/gals on this forum are doing - did you invest your excess liquidity and make min monthly payments or clear off your school loans in one go? Can definitely deploy into the private/public markets but wondering if I should just take care of it now or later.


Thanks everyone.

 
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I wouldn't pay it off - yet. See what happens with this administration. They keep extending the loan forbearance. Maybe it will get wiped away completely. You never know. If a new administration comes into play by 2024 (namely Republican) then I'd go ahead and pay it off. I have about $17k in student loans and am going this route. 

 

I mean - 1) it's surprising you still have student loan payments outstanding. Assuming it took you more than 3 years to get to this level and 2) I feel like everyone, including you from your OP, knows about the opportunity cost and looking at the interest rate of the loan vs. the ROI of other investments. 

Just sort of random that's all. 

P&L-wise idk man, could definitely be better. Could be worse too I guess. Looking to finish out the year HSD net. Were on track for LDD but PM took the gas off some of my longs early. You know how it is.

In the spirit of adding value though. I'm always in favor of keeping debt in my life and investing in the stonks for anything sub 7% (higher hurdle than most will take but I'm aware I'm just more risk-prone). Go to First Republic and they'll refi your loans for like 1-2% cuz they're desperate for your business. Lots of friends have gone down this route for their loans.  

 

4 years to get here, but pushed it off significantly because I just didn't want to pay it. COV also helped since everything is in forbearance - and talks of wiping out student debt (be it real or not) also pushed me off from doing anything. I get opportunity cost / ROI of other investments - just super debt averse and hate having it on my books. Mentally messes with me.

I hear you re: performance. HSD isn't bad - better than flat or down.

 

yo in the same exact boat here. My wrinkle is that while like yes in theory it would be great to keep the debt balance and start really working the PA, I also hate how living with debt feels and feel like it has limited my risk appetite in life quite a bit

Any clue how much better re-fi rates actually would be for MBA + undergrad in your shoes? If 2-4%, that feels like an insanely easy hurdle, but if more than that, I feel like I'd rather just pay off the debt 

 

Why wouldn't you just keep extending it ? Time value of money and delaying it means you are paying a cheaper amount.  I would just open up a checkings account and deposit the funds that could pay off that loan amount and then never dip into it at all. 

Also assuming student loans are interest free ? That is what someone told me 

 

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