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Rising Star
I am doing the latter
The latter seems like good approach. 1.5% in high yield savings is better than nothing. Long as you don’t gamble with it instead 😅
I would say the latter, earns a little more money and provides with liquidity in case of emergency. I'm dedicating the monthly amount that is currently in forbearance to my higher interest rate private loans that are still accruing interest.
Rising Star
Liquidity is the real benefit
I have full ability to pay and deferred for 2mo to bank the cash in savings. I don’t think I’ll lose my job but the uncertainty means the cash is valuable right now.
I’ve paid off mine, but the latter is exactly what I recommended to my baby brother. He’s an engineer with a great job, but there’s just so much uncertainty! At first his company was just going to furlough him 1 week.
After that conversation, he found out that he would be furloughed a few days every week! Fortunately, he lives frugally, so he’s fine and can continue to set aside savings for his loans, but we really don’t know how long this is going to last!
Stick it in savings and STICK TO planning to pay off debt when interest kicks back in. Obviously unless you need it for food/rent.
Im doing the latter with my mortgage payments. Opened a citi checking account that provides a $400 bonus (and 1.4% interest) when a certain amount is deposited within 3 months. I’ll be putting my mortgage payments in there for 6 months and then will pay off the forbearance amount when the time comes.
Paying off immediately
I'd do the latter just to be safe. I'm in PSLF so I'm glad to not have to pay and still have the six months count towards forgiveness. I'm putting the money in a HYSA every month.
Dump it into SPY PUTS and YOLO
Fed keeps printing money though! Keeping this market up
I’m using the time to beef up my emergency fund. Then I’ll go back to paying the loans come Oct 1st