I’m in a position where I busted my ass these past 3 years and can pay off my student loans while being in school. I attended CC in California so that was free and then transferred to a UC. I’m looking at graduating with 25k in debt but I can easily pay that off if I withdrawal various portfolios. Crypto 13.5k, stocks/ETFs 8.8k, and the final 2.7k from my HYSA. A part of me wants to leave it but I know I should be smart and just reduce my portfolio to 20% of what it is now. Would you hold until the 6 months ends or pay it all rn?
What would you do in my shoes?
byu/Seabass_sebas inStudentLoans
Posted by Seabass_sebas
2 Comments
What’s the interest rate on your student loans? Remember that student loan interest is simple interest while investments compound on themselves. Even if your student loan interest rate is higher than your return on your investments, you could be missing out on future gains by removing money from your investments.
You have given information on your portfolio but nothing on the loan. What is APR? Are they federal/private? Subsidized/Unsubsidized?
Depending on the rate and what the payment is and how much you will earn just after college. It may not be worth it totally liquidize your assets for clear the debt. Or it might be. 25K isn’t that much debt and at a low rate, it may not matter much just paying a bit more per month than the minimum and letting your investments grow.