Student Loans

Which Student Loans To Pay Off First – How To Invest While Paying Off Your Student Loans


Which Student Loans To Pay Off First – Whats The Best?

“How can I save or invest when I have student loans” is a pretty common question for recent graduates. According to Student Loan Hero, the average student loan debt for the class of 2018 reached nearly $30k. With student debt repayment as a top priority it can be difficult to set aside for retirement.

Erin Lowry, author of “Broke Millennial Takes on Investing,” says you can invest for retirement and pay off your student loans at the same time. “It’s really the question on most millennials’ minds,” Lowry tells CNBC Make It. “No one ever said they regretted paying off their debt, but at the same time if you take a 10-year hiatus on investing those are critical years that your money can be compounding and growing.”

Investing early provides a big advantage when it comes to retirement savings. For younger investors, the money you save has more time to earn compounded interest.

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How To Invest While Paying Off Your Student Loans

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  1. Ryan Libasia
    July 27, 2021 at 7:41 am

    I think paying off the debt to a sustainable level is more pressing than investing especially if you have high interest on the student loan.
    Sustainable level – meaning pay down the principal to a level which incase you lose your job or have a huge expense like a medical bill, you can request your student loan payments to be lowered
    Note: Lowering your student loan substantially also helps your credit score which can help refinance loan at lower rate if you had a high rate (only advised for private loans because refinancing fed loans removes certain benefits)

    This might not work for everyone so you need to do a scenario analysis ( get help from an student accountant )

    The thing about debt is if you lose your job you will still need to pay your student loan, even if they can pause your payments till you get a job, this doesn't help because you still owe them money.

    Yes you will be missing out on compounding effect on the money you invest but its better to know that if you lose your job your not going to get into personal loans, payday loans or credit card debt to meet these monthly payments which you might not pay off if you don't have a job. Some borrow against their retirement accounts because the financial obligations pressure them into making irrational decisions. A lot of us are a medical bill away to bankruptcy so REDUCE YOUR DEBTS IMMEDIATELY

  2. istofal
    July 27, 2021 at 7:41 am

    That money you invested does not belong to you. It belongs to the entity you have dept with.

  3. Bichr Salhi
    July 27, 2021 at 7:41 am

    i wouldn't dont call 'putting your money away so you can benefit from interest" as investing. These type of practices shouldn't be a thing

  4. Cindy Williams
    July 27, 2021 at 7:41 am

    I’ve been in a large loan debt with no hopes of ever paying back but I thank God I met a very professional Hacker by name JefferyDhacker he helped me clear my loans and also thought me how to make money online. I want other people to benefit from this good hacker you can reach him on 425-278-4421 you’ll thank me later for this.

  5. Zach T
    July 27, 2021 at 7:41 am

    Dave ramsey is having a heart attack right now.

  6. amy lieu
    July 27, 2021 at 7:41 am

    If you get a low enough interest rate you could invest in blue chip stocks and profit off the difference. If your loans are subsidized the government is giving you an interest free loan and you could put the surplus in high yield savings accounts.

  7. Drew Conway
    July 27, 2021 at 7:41 am

    Really, the #1 question is whether someone should be investing while paying off student loans? I mean… really? 😕

  8. Saul Goodman
    July 27, 2021 at 7:41 am

    It's like the same videos everyday, with just a different person.

  9. Chris Invests
    July 27, 2021 at 7:41 am

    Side hustles are underrated in my opinion 🤔👍