Thursday, September 9, 2010

Paying Off Student Loans

I am slowly paying off my student loans but I will not be rushing to pay off my $22,000 consolidated loan from undergrad. Its at a measly 4.25% and the monthly payment is only $140.00 a month the monthly payment will not be affecting my monthly budget that much. I also have graduate student loans that are at a higher interest rate ( like 6.25%) and those will be my first priority.

I'm still working on a repayment plan aka snowball for the graduate loans which come out of deferment in Feb and will post as soon as I complete them.

Are you snowballing your student loans or just paying the minimum?

until next time, think prosperous thoughts



Small Budget, Big Style Chick said...

I'm just paying the minimum on my student loans for the time being. I'd like to start debt snowballing them in 2011 after I replaced some of my depleted emergency fund.

Frugalista said...

I paid the minimum for 10 years until it was paid off. The interest rate was low so I just took my time.

Carmesha said...

I'm paying the minimum right now. The interest rate is lower than on my credit card so it's not a priority yet & i'm trying to build up my emergency fund.

Broke by Choice said...

I am snowballing my payments. It is my hope to have the $48K paid off in less than 2 years. The snowball was effective with credit card and car loan debt the past 3 years. Dave Ramsey's advice works.