Help with cash!

[junitas]

Hi all,

I have about 50k of private student loan debt at 9% variable interest; and about 37k federal student loan debt at 3.25% fixed. I have about 22k in cash and 8k in compensation this year that my employer tells me I have to put in a SEP IRA.

Other things about my situation - I rent, I net about 1k a month after all expenses, and I don't like my job.

1. What should I do with my cash?
2. Can I put the 8k toward student loans without paying a penalty?

Thanks for your help!

[kristinecfp]

Junitas,

This is a hard question to answer given what little data you provided. But, here are some things to think about:

1. Do you have an emergency fund?
2. Do you have any retirement savings?
3. Are your retirement savings adequate for your age/goals?
4. Do you have any other debts, and at what interest rates?
5. What other financial goals do you have? Will you be buying a house soon? Car? Getting married?

This is a great forum to learn, but that kind of question is best discussed with a financial planner, who will look at your entire situation, and help you create a plan based on your own financial goals and needs.

[PRICEPLUS]

Set up an EF of 3 to 6 months living expenses. Get rid of the variable rate loan as soon as you can. I don't know about a penalty because I don't know what you signed. It has been many years since I paid off my college loans.

I am sorry you don't like your job but that happens. Put out feelers for a new one. Don't forget to budget. Good luck with whatever you decide to do!