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should I pay off my student loans in full before intrest kicks in? (lemm.ee)

submitted 1 year ago by [email protected] to c/[email protected]

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General financials:

I can afford to pay them off in full and have plenty left over for general life needs

The interest rates on them should be 4.53% according to their chart of when it was awarded.

If I do hold onto the money and pay off monthly I can put everything into a CD but I'll still be losing .03% if I lock in the student loan money maybe I'll beat but .07-.43% so not a ton of upside unless there's sudden political will to actually follow through on student loan forgiveness.

Is there anything else I'm missing when considering this? I am leaning towards just pay off as I've been planning for this, but I want to make sure there isn't something else to do.

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[–] [email protected] 7 points 1 year ago

I think at that rate there isn't a bad decision. Pay it off for the peace of mind. Or, if you have a higher risk tolerance, invest it in the market, since long term it would likely return more than 4.5% (historically speaking, of course). I think keeping the money to keep it in a money market account or CD is probably not worth it, though.