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College Loans

December 16th, 2007 at 05:45 pm

Thank you everyone for all your great comments and suggestions.

I've dug up my college loan information and it's not the end of the world. I have three loans, one with an interest rate of 7.2% and two with a rate of 2.8%. The first one has a balance of $3,000 and the second two have balances of $19,000 and $17,800.

If I have children, I'm definitely going to plan their college fund before they are born, it's just not worth it to be this much in debt and only be 25! 529, anyone?

I think I can pull off paying the 7.2% interest rate loan fairly quickly, since that's way higher than my savings acct rate of 4.9%. And I'll keep chipping off the higher balances.

3 Responses to “College Loans”

  1. Ima saver Says:

    Good start!! Keep up the good work!

  2. cptacek Says:

    I think that is a good plan. Pay off the 7.8% one, and pay minimums on the 2.8% ones. If it were me, I would just plan on paying the minimums on the 2.8% ones until they die a natural death. There are a lot of things you can invest in that should give you a better long-term return than that (one caveat...if you are choosing between spending the money on, well, just stuff, and paying the loans off sooner, pay them off sooner. If you are choosing between paying the low interest rate loans off sooner and investing, then invest!).

  3. Broken Arrow Says:

    Yeah, I'd definitely get rid of that 7.2% sooner rather than later. It's fairly high for a student loan (but I guess that depends on what else is going on in your financial life).

    On the other hand, I think that 2.8% can linger on for as long as it needs to. Big Grin I wish I had mine locked in at that rate. Wow.

    So, you go to Duke or UNC Chapel Hill?

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