Best Tricks for Paying off Student Loan Debt | Mint Student Finance Tips Video

Best Tricks for Paying off Student Loan Debt | Mint Student Finance Tips Video


This question comes from
Cory on Mint’s Facebook page. And this is Cory’s question. What is the best way to pay off
$32,000 of student loan debt? Cory that’s a very
good question. It really depends
on the interest rate that you’re paying on
that student loan debt. There are certain types of
student loans that have very, very good interest rates– 2
1/2%, 3 1/2% and in many cases, that interest is tax deductible. I would not accelerate a
pay back of those loans by taking money out of
another type of investment, and especially I would
never break into a 401K to pay off that kind of loan. However, there are
types of student loans that have fairly
high interest rates, so really it’s a
matter of budgeting. You put more of your
discretionary funds at the end of the month towards
the principle of that student loan and you’d be
surprised just how quickly you could pay it off. I’ll give you a great
example to quantify it. $32,000 is not terribly
different than what you would pay for an auto
loan, and most auto loans can be paid off in 36
months to 60 months, so you should be able
to knock that debt off within the next five years.

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