The person asking the question appears not to have taken out his/her loans yet. The current rates for students loans is not as low as assumed in calculations above. Current student loans run from about 6.8 to 8.75%. This increase went into effect in June 2006, I think. One cannot count on making investment returns equal to the higher range of this rate, a rate which the questioner is apt to encounter with private loans not backed by the federal government. Especially with people getting student loans currently, it may be advisable in the future to pay off the loans more aggressively than previous graduates needed to do.
|