{ "media_type": "text", "post_content": "Student Loan question: my wife has ~$45k in fed loans. We just sold our house and made a very good profit. Should we just pay off her loans entirely? I really doubt there’ll be any significant blanket forgiveness from the Biden admin any time soon. Just curious to hear different perspectives!", "post_id": "610825b3165de8002abe3d4e", "reply_count": 26, "vote_count": 1, "bowl_id": "5ae4a4f739e7cb001391ec8b", "bowl_name": "Consulting Exit Opportunities" }

Student Loan question: my wife has ~$45k in fed loans. We just sold our house and made a very good profit. Should we just pay off her loans entirely? I really doubt there’ll be any significant blanket forgiveness from the Biden admin any time soon. Just curious to hear different perspectives!

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Pay the loan, especially if you have the extra cash. It will free you up and mentally be a huge weight lifted.

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Pay all but 10k. 10k will be forgiven in the not so distant future. No guarantees of course.

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I think there will be student loan forgiveness. How much? I don’t know but they are already doing somethings which was the right things to do. If you are making more money in the market or investing in something that nets you a higher return on that money, you should go that route. If you don’t make a higher return, you should just pay off the loans.

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Pay the entire loan. Banking on forgiveness is not a strategy.

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Especially when it’s at 7%

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Only pay the minimum required until Uncle Joe’s loan forgiveness shakes out.

No need to pay, just wait until Biden forgives it.

OP - I’m personally waiting to see movement from the Biden admin on what happens with fed loans (10K forgiven, refinancing reform etc.). I’ve got a pretty penny saved up given that I haven’t made any payments on them since they were frozen at the beginning of the pandemic and plan to use that money to pay down the loan and/or do private refinancing once the time is right. Long story short - you don’t loose anything by waiting given that interest is frozen aside from inflation on your savings.

I could be wrong but in the bill passed earlier this year there was wording that allows him to wipe all student loan debt out using an executive order. He’s been using it to focus on the ITT Tech fiascos, etc. so far. I suspect he’s waiting to see the information on how much money will continue to be pumped into the economy to determine how much he will wipe out. He’s publicly stated he doesn’t believe all will be forgiven.

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If the interest rates are over 3% AND you have a rainy day fund with 6 months expenses put away, sure. If you don't have a rainy day fund, use the money to create one and then don't touch it unless you have an emergency. If you already have a rainy day fund but your interest rates are below 3%, it's smarter to take that money and invest it. You're almost guaranteed to return higher than 3%, so you're technically going to be losing money in the long term by paying it off.

What is the interest rates on the loans?

Definitely pay off the 7% loans

Depends what the interest rate is. If you can make higher returns (accounting for inflation) by investing in the market, you should deffinitely invest some

Wait as long as you can for the loan to be eaten by inflation

When are people going to learn debt is destroyed by inflation. Don’t save more, go buy assets and take as much debt as you can for assets. If you already have debt pay as little as possible (the opposite of Dave Ramsey)

EY3, the US government doesn’t have variable student loans. They are all fixed.

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Get rid of the debt.

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