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Old 03-13-2006, 07:03 AM
gakline gakline is offline
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Location: Naperville, IL
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Default Re: Pay down school loans, mortgage or SAVE?

Quote:
Originally Posted by Tree0164
I hate having any sort of debt even if is a student loan. How much are you really earnning each year even if your savings accounts are earning a higher percentage???? Maybe the most 1 or 2%.

I would try to get that paid off as soon as possible.

Even if you earn 2% (in a savings account) you can write off any interest made from the loan on your taxes. But if you put it into a Roth, you can earn more than that. Last year my Roth earned about 15%.

My student loan interest right now is 3.12% (drops another 1/2% after 36 ontime payments). Assuming that inflation is between 3-4%, it makes me feel a lot better that they are actually losing money on me.
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