bdpb wrote:Put everything else towards the debt. Pay the minimum on each loan. Pay the extra towards the 17k loan. Although it's rate is not the highest, it is the smallest loan. Once it's paid, it will free up cash flow to continue paying the other loans.
bdpb wrote:Check your 401k for loan options. 401k loans are often much cheaper than these loans. Borrow from the 401k to pay these debts. At least until your student loan interest no longer exceeds 2.5k.
Watty wrote:(B) Invest just enough in 401k to fully deduct student loan interest and pay extra towards loans
How much would being able to deduct the interest actually save you?
You need to be careful about doing this since getting the deduction this year might save you some money this year but if this means that you will have the loans for a few additional years then over the long term it might actually end up costing you more. It would be good to make up a spreadsheet to see how these numbers work out over the length of the loan.
Users browsing this forum: No registered users and 17 guests