Have a bit over 91k in loans still and now have the money to just knock it all off in one payment and have an adequate amount to feel secure in the bank on top of that but man does it make me nervous to spend that much at once. Should I just rip the bandaid off and get it over with? I'll be transparent, I'm definitely here seeking encouragement and would love to hear from other people that have done big chunk payments. Thank you in advance!
Posted by JiffyPop55
30 Comments
Yes.
I just did this- all 60k left in one sweep. Be free, my friend.
Yeah I just paid 95k in one payment. Sucks to see the money go, but the weight has absolutely been lifted.
Do it! Most of us would if we had the money.
Do it! If I could, I would.
I only have 13k left of my student loans and am just making the monthly payments from a HYSA. The HYSA doesn’t cover the interest of the student loan but I don’t want to dip into my savings.
I did just that. Best decision I have made in a long time. Just do it.
Personally, I wouldn’t. I’m in the same boat, but at 6.5% interest on the loans I can get a better return on investing that money instead of paying off loans. Plus I’m working towards PSLF, at least until that program gets canned. Backup plan is to just pay the tax bomb in 25-30 years with the money I’ve invested starting now.
Do whatever you need to do. Pay it off over a year or in 3 months or whatever. Just do it.
I did 79k last month. Do it. It feels amazing to not have it around
Calculate the monthly interest on $91k worth of loans and ask yourself if you’re okay with throwing away that much money for no reason
As long as you’ll have a good emergency fund left afterwards, I would definitely do this.
Yes pay it off. The best high yield savings accounts are under 4%. Im assuming your student loan interest is more than 4%. Letting the student loans hang around is just costing you money.
How much interest is that a day?
Yes.
If it’s not putting you in a hole or ripping a safety net away, do it! As someone that just paid off their student loans, the feeling of being done for good is worth more than you know.
I paid off my student loans during the interest free period during covid (about 20k) and it was such a a amazing weight off my shoulders! If you have the money now, definitely recommend and you’ll never have to think about it again
No where near that, but I made payments that were pretty big for me. No regrets about doing it.
Think about all that extra income each month you’ll have to rebuild savings or whatever you want.
I mean, if you’re ready to do it, do it! However, if your interest rates are particularly low you could do a partial lump some and invest the rest to create a more balanced choice.
Paying off a debt like that is truly a wonderful feeling. I would pay it.
Do it
Absolutely.
Need more info. What is the interest rate? What is your current tax rate? What could you earn on the money if you invested it? Are the interest deductions help you out when filing your taxes?
You’re going on emotion and that’s cool, but there are lots of facts to consider too
To not pay it off when you have the ability to I believe you would regret. I would highly encourage and recommend that you take care of them now. You don’t always know what is ahead when it comes to temptations and that money could easily go out the door for something else that is a want vs a need. I have student loans myself after returning to college at age 56 and I had parent loans for my kids college. $80,000 worth. If I had not paid those parent loans off when I inherited money from my parents when they passed away, I would be in a bad situation right now at age 67. Oh boy I wanted to spend that extra money I inherited on many many things but I took the dive, and ripped the bandage off then and paid them off. I saved a lot of money in interest charges and my debts today including my student loans are modest and manageable as I go into retirement. I realize you may be young enough to not worry about retirement right now but life has its many twists and turns and what a nice feeling it is to have something huge like those loans behind you!
Absolutely do it – especially now that interest is accruing again. (I have a similar amount and would be doing the same if I wasn’t so close to PSLF.)
Yes.
Yes you should because it will save you a ton of money in interest in the long run like 10s of thousands depending on which rate you got
How many times does this question get asked in this sub
You might want to consider making an appointment with a financial advisor.
We did it with my loan… $80K. It really hurt our emergency fund. But I’m putting $1000 a month back into it. It was just better to have it out of our lives.