Re: Pay off student loans early or take the tax deduction from the interest?
You will be paying more in interest on this loan than you will pay in extra taxes by not having the deduction. It is sound advice to pay it off, than to save it for the tax deduction.
However, getting your finances in order by having an emergency fund in place is more important than getting this loan paid off early. So if you keep the funds for the EF, then take the tax deduction on the student loan while you have it. Then start paying off student loan early.
Edit: I see you have the EF, so I'd pay off the loan. Won't that feel great!
|