My oldest will be heading to college in 5 years. I don't have a lot of money saved up for him. He knows that and I told him he will be responsible for most of his costs of college education. I know many other kids graduating college this year will be paying for student loans for a few years.
Should you pay off your student loans quickly?
Feeling trapped under a mountain of student loan debt?
Joe Mihalic did. So a year ago, the 29-year old Harvard Business School graduate aimed to wipe out his $90,000 debt. He was earning just more than $100,000 as a product line manager at a technology company in Austin but was spending too much. He stopped eating out, rented two rooms in his house, sold his motorcycle and cashed out a retirement account. He paid off his loan in just seven months.
Fixed or Adjustable rates for Student Loans
Which student loan option should my daughter take: a fixed-rate loan at 6.25% over 10 years for $20,000, or an adjustable-rate loan for the same amount, initially priced at 2.75%, over 10 years and tied to the one-month Libor?
Obviously, much can be saved with the adjustable-rate loan as it stands now, but there's the chance that this could change down the road. What would you recommend?
Pay off student loans or fund Roth IRA?
Looking for some more advice. I have about 41K left to pay on my student loans, but at a much lower Interest Rate (3.25%). They are Federal Loans, and I consolidated them years ago (34K Stafford Sub, $6,600K Unsub). I'm currently on an IBR status with my loans, BUT I have been paying on them regardless, not having a full-time job. The goal for this year is to knock out the unsub loan amount as much as I can. However, should I also save the 1K to start a Roth IRA this year?
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