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

YBP

4 comments:

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.