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Marcus HYSA rate cut down to 2.0% :(
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Bowl Leader
“i just fell asleep in the elevator”
Totally agree 😁
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Marcus HYSA rate cut down to 2.0% :(
Enthusiast
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What stocks are you betting on for 2018?
Rising Star
Thoughts on SoFi bank?
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I will never pay mine off. They'll be forgiven under the public service loan forgiveness program.
People don't pay attention to the actual rules of the program. I think most of those people just filed because they wanted a shot at forgiveness. The program is pretty clear in terms of which employment counts and which loans are eligible. I verify every year and they confirm those twelve payments count. There was an issue with teachers getting forgiveness but Congress fixed that.
when you have emergency fund saved. Pay as much as you can. Why would you wait to pay it in full?
Right now, I would put that entire amount in the emergency buffer. These are economically precarious times. Make smaller payments b/c right now you have no job security.
Agree, esp if the rate is low.
Pay it off aggressively. I'd make regular payments until you have a 6 month emergency fund and then I'd pay it off in 2 years or less. I did this with a similar amount when I graduated a few years ago. Special times or not, 6 months expenses + whatever severance + unemployment should get you through anything. No point in holding onto that cash when you can take advantage of this interest free period.
I wouldn’t. Why pay something off with a 20 year runway while leaving only a TINY financial buffer. I would 100% wait until I had 1-2 years of savings or 2-3X the amount before paying in full.
That said, I’d adjust my expenses to pay down the principal balance faster each month to reduce the interest burden in total.
Rising Star
When I started at EY, I had around 71K loans across three different accounts at varying interest rates. During school I paid for some loans then as well. I also had inherited 30K and eventually used 20K of that (regret not applying these larger payments for a couple of years), leaving 10K as an emergency fund (I also regret... I'm in tax and it would have been easy for me to find jobs at other places). I eventually reconsolidated in a variable rate loan and started paying a lower rate. Rates started increasing more than I liked from 4.4% to 6ish% so I refinanced again with a 23K balance to 4% fixed. Paid this down to 15K and refinanced to 2% variable as of last week.
Not in a rush to pay this back until well after the economy is actually stable. There may be plenty of investment opportunities.
Interest rate is 0% right now. Throw as much as you can at it. Getting out of debt is a very freeing experience.