If I finish my MBA with extra loan money, should I pay it back to reduce the principal? Or invest it into the market? From my perspective it seems like it makes more sense to invest since the market is likely to generate more than my current loan rate. Although having debt also provokes some anxiety.

For additional info: my loan is a private loan of ~100k at ~5.2%. I have no other debt.

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If having debt provoked anxiety, pay it back immediately. Investing in volatile asset classes can be tempting to maximize returns, but the best return is peace of mind. Sleep better at night and just pay it back.

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I would personally dump it back into paying to reduce principal because mentally I hate debt even if logically it’s likely better to put into market. Don’t discount the value of mental health

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5.2 is a lot. You have to make serious returns to make carrying that debt worth it. Just pay it off.

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Dump it into the market and activate margin to invest $200k of OPM.

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You didn’t learn this in any finance classes?

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@P1 this is honestly one of the more valuable replies to ever hit fishbowl. Thanks for taking the time to remind us of financial basics!!

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