Here's the deal....
I owe $12,700 on a private loan with an interest rate of 1.9%
I owe $11,000 on federal subsidized loans with interest rates of 7.4%
Which loan to pay off first?
Advantages of paying private loan first:
-I can never consolidate it
-It doesn't qualify for education money incentives like the Americorps program
-Monthly payment is set, no matter how dire my situation becomes
Advantages of paying sub loan first:
-Much higher interest rate
-Not owing money to the gov't
Other things to consider...I owe the IRS $1800 which has an interest rate of 10%, and I'm only paying the minimum payment...$25/mo.
No credit card debt, own my cars outright, rent, and have a TD Ameritrade account that I could clean out to pay said student loans.
Tips?
I owe $12,700 on a private loan with an interest rate of 1.9%
I owe $11,000 on federal subsidized loans with interest rates of 7.4%
Which loan to pay off first?
Advantages of paying private loan first:
-I can never consolidate it
-It doesn't qualify for education money incentives like the Americorps program
-Monthly payment is set, no matter how dire my situation becomes
Advantages of paying sub loan first:
-Much higher interest rate
-Not owing money to the gov't
Other things to consider...I owe the IRS $1800 which has an interest rate of 10%, and I'm only paying the minimum payment...$25/mo.
No credit card debt, own my cars outright, rent, and have a TD Ameritrade account that I could clean out to pay said student loans.
Tips?
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