Emergency Fund Tips – Should You Pay Off Student Loans With Savings? | Mint Student Finance Tips

Emergency Fund Tips – Should You Pay Off Student Loans With Savings? | Mint Student Finance Tips


This question comes from Tim from Mint’s Facebook page, and Tim asks this: Should I take roughly ten thousand dollars out of my savings slash emergency fund to pay
off my student loans? The interest rate on the student loan in 2.2 percent. Tim, my suggest would be leave that money where it is. Even though you’re not earning a lot of interest income the fact that it’s an emergency fund I think is very important. The amount of money in that fund should be enough for you to live off of for at least three months, and in some cases, twelve months. 2.2 percent is a very very good interest rate. That’s almost free money. I would go ahead and pay
that loan off month after month like you’re currently doing, and do not take money away from other important savings to accelerate the payback.

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