I currently have $47k in a HYSA and my student loans total roughly $20k, with interest ranging from 4-4.8%. I still owe $5k on my car, but interest is only 2% so I believe riding that out is the best play. Fiancée and I plan to buy a house soon as well. I do contribute 10% to a Roth 401(k) through my employer.
Should I pay off my student loans, pay them down, or invest my money elsewhere? Looking for advice!
Posted by Boosted_FA5
4 Comments
Pay it off and be done. Don’t keep that hanging over your head!
whats the interest on your HYSA? I’m assuming it’s lower that the interest on your loans. It might be a good idea to pay off a big chunk of the loans, if you wanted to.
But, if you want to buy a house soon, any liquid money is better spent on a large down payment for that imo, and of course you want an emergency fund as well.
Honestly in your situation I probably wouldn’t pay off the student loan right now. If you weren’t about to buy a house, I would say otherwise. But the fact that you want to buy a house soon makes me want to urge you to keep as much money liquid for that as you can.
See how much money you still have a year after buying the house and make a big lump payment on your loans then as a houseaversary gift to yourself
Dont give away money for interest if you dont have to. That 4% matters over time. what is it 202 a month?
I would pay them off..you’ll still have 27k leftover however wait until after you buy the house