If you’re Paying Down Student Loans Early — or Investing Rather?

If you’re Paying Down Student Loans Early — or Investing Rather?

Should you spend down your student loans early or invest the funds rather? Clearly, you should keep them around for as long as possible, since the interest cost is at or even lower than expected inflation if you were one of the lucky ones that took out student loans at the ultra low 2% to 3% rates of the early-to-mid 2000s.

Nonetheless, that situation does not connect with many people any longer. The typical debtor now removes financial obligation at a 6% to 8% price straight through the government. Then you may refinance to a lesser interest when you’ve got a constant work into the personal sector.

Nonetheless, you can select such a thing from the five-year fixed rate at 3.5per cent up to a 20-year fixed rate at 5.5per cent — or maybe something in the middle. Continue reading “If you’re Paying Down Student Loans Early — or Investing Rather?”