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Student loans vs saving for downpayment

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    Originally posted by jpg7n16 View Post
    That's nearly half a million in debt, and a significant amount of assets subject to the risks of real estate. If you're okay with that, your income is high enough to make it work.
    Great analysis.
    Some of us prefer high cash flow with higher debt and low net worth.
    Some of us prefer high net worth with less debt. I prefer this, but don't see problem with the other.

    OP is going towards right direction as far as he doesn't mind having higher debt.

    p.s. I see a lot of postings about student debt these days. Not just the SL, I also read about parents refinancing their mortgage to help kids going through school. I wonder what would be the effect of student loan bubble!
    Last edited by Hector; 02-24-2012, 11:56 AM.



      I received a lot of advice on here and I wanted to update our current financial status. Here is what we currently owe in debts:
      1. Primary Residence - 140k
      2. Rental Property - 99k
      3. Student Loans - 71k
      What I did is take a few months and make an extra $2500 payment toward our primary to get the balance down to 140k. Our goal is to get it down to 130k in order to sell and either break even or make a little cash.
      I started paying down my lowest balance student loans in order to free up monthly cash flow. By my prediction, we should owe about 45k in student loans by 5/13. That is a heck of a lot better than when we started with 110k about 2 years ago.
      I am going to keep paying only the mortage on the rental property and focus on student loans first and then back to working down the mortgage to around 130k.
      My plan going forward is by 5/2014 we are hoping to be student loan free and only owe around 130k on our primary residence. This will put us in a really good position to purchase our next house (as we just found out we have another little bugger on the way) and live a good lifestyle while continuing to pay down the rental home and our new home.
      Any thoughts or flaws you see with my current financial path?


        Loan is always been an issue specially in student loan,for me i seen this one is not manage very well however it is really great to see.For me you should put more attention on how you control and manage your debt,in Finland most of the lender of pikalaina or quick loan done their debt very well by managing and controlling their self for some financial things that don't need.