zevo Posted April 20, 2007 Share Posted April 20, 2007 Hi guys. I will be graduating in May had a few questions regarding my student loans. I will leaving scholl with a total loan amount of around $85,000. About 60 of it is consolidated at 4.75% interest and the rest is at the fixed current interest rate of 6.8%. I also have roughly $32,000 of my money that I am earning 4.5% interest on. I chose to go with the 10 year repayment plan in which my monthly payments will be roughly 900$ a month for the next 10 years. I know it seems like a lot but I will be graduating as a pharmacist and will be able to handle those payments out of the gate. But my question is should I be aiming to pay off the loans as fast as I can or should I just make my monthly payments for the next 10 years and help build good credit. Should I take the money i currently have and pay back as much as I can? I would really like to know what you financial guys think. Thanks alot as I really have no idea how to approach this. Link to comment Share on other sites More sharing options...
mead107 Posted April 20, 2007 Share Posted April 20, 2007 keep your money in your bank Link to comment Share on other sites More sharing options...
tennesseeboy Posted April 20, 2007 Share Posted April 20, 2007 hell..you'll make three times that in your first year selling Oxycontin out the back door! Link to comment Share on other sites More sharing options...
RayFinkle Posted April 20, 2007 Share Posted April 20, 2007 call or email Clark Howard. He his a financial guru guy who hosts a nationally sidicated radio show. He knows his stuff. Link to comment Share on other sites More sharing options...
Pine Barrens Mafia Posted April 20, 2007 Share Posted April 20, 2007 Pay off the higher interest debt with the saved cash. Pay off the rest as soon as you can. Link to comment Share on other sites More sharing options...
callemasiseesem Posted April 20, 2007 Share Posted April 20, 2007 Consult a qualified financial consultant NOW and start planning for your retirement NOW. Learn about Roth IRA's NOW. Do not take your financial advise off of a Bills discussion board. You've already received some crappy advise and you're likely to get more. Link to comment Share on other sites More sharing options...
ofiba Posted April 20, 2007 Share Posted April 20, 2007 I'm really going to need to know your bank account information and social security number before I even attempt to answer those questions. Link to comment Share on other sites More sharing options...
Guffalo Posted April 20, 2007 Share Posted April 20, 2007 Consult a qualified financial consultant NOW and start planning for your retirement NOW. Learn about Roth IRA's NOW. Do not take your financial advise off of a Bills discussion board. You've already received some crappy advise and you're likely to get more. Bingo!! I was going to offer advice, but a simple consultation with a financial advisor will help. With what you have presented, he will guide you over this hump as a freebie, going forward he will work to make sure you have a stable growth and ROI as you get older. Link to comment Share on other sites More sharing options...
Fezmid Posted April 20, 2007 Share Posted April 20, 2007 Keeping debt does not really increase your credit any. Go to http://www.myfico.com to get some more info. Pay it off as soon as possible BUT make sure you keep enough in savings in case you have trouble getting a job, get into an accident and have to take a lot of time off of work, etc, etc. The general rule is 3-6 months post-tax salary. Once you have the nestegg, pay off the rest of the debt ASAP (but don't skimp on 401(k), ROTH, etc) CW Link to comment Share on other sites More sharing options...
TPS Posted April 20, 2007 Share Posted April 20, 2007 Hi guys. I will be graduating in May had a few questions regarding my student loans. I will leaving scholl with a total loan amount of around $85,000. About 60 of it is consolidated at 4.75% interest and the rest is at the fixed current interest rate of 6.8%. I also have roughly $32,000 of my money that I am earning 4.5% interest on. I chose to go with the 10 year repayment plan in which my monthly payments will be roughly 900$ a month for the next 10 years. I know it seems like a lot but I will be graduating as a pharmacist and will be able to handle those payments out of the gate. But my question is should I be aiming to pay off the loans as fast as I can or should I just make my monthly payments for the next 10 years and help build good credit. Should I take the money i currently have and pay back as much as I can? I would really like to know what you financial guys think. Thanks alot as I really have no idea how to approach this. Here are two options; one risky, one not. Minimal risk: follow JSP's recommendation and pay off the 6.8% fixed rate loan with your "own" money. It's always better to pay off a higher interest loan with funds making less. That would leave you with a payment of $630/mo. Throw the remainder of the cash into a mutual fund and add to it on a montly basis. Risky option: Throw the $32k into a mutual fund. If it earns the historical average of about 12%, then in about 4.3 years you'll have an amount equal to what you owe. Pay it off, then put the majority of your $920 loan payment into the MF. Current problem with this strategy is we're near the peak of a cycle. If there's a significant market correction after you've thrown the $32K in, you're screwed. Link to comment Share on other sites More sharing options...
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