Comments on: Should You Consolidate Student Loans Or Pay Them Off?

By: Dee

Dee — Wed, 21 Sep 2011 01:03:55 +0000

I know this article was probably written for the average Joe getting a job out of college but from a financial perspective it needs some tuning up. For example, I run an online retail business where on $10,000 I can get about a 15%-20% return a month turning inventory over which equates to $1500-$2000. That’s several hundred dollars on top of the loan payment. If you just give up that $10,000, that shuts that whole operation down. Also, if you’re a business person wanting to start a business, equity is so very precious at first. If someone has money in the bank they shouldn’t be saving it, they shouldn’t be blowing it all on paying off a loan at once, they need to be finding ways to generate capital at a faster rate than the terms of the loan.

By: Friday Links - Canadian Finance Blog

Friday Links - Canadian Finance Blog — Fri, 23 Apr 2010 09:04:17 +0000

[...] Money Help For Christians questions whether you should consolidate student loans or pay them off? [...]

By: Craig

Craig — Fri, 23 Apr 2010 01:02:48 +0000

@lencib
Keep up the good work. Go ahead and get it paid off.

By: lencib: Falling into Favor

lencib: Falling into Favor — Thu, 22 Apr 2010 22:04:21 +0000

I have a student loan that we're paying off now. I'm actually going to get a part time job and knock it off this year. We own a home and we don't want to pull money from savings/401K/etc to pay it, since we don't know what will come up in the future. We're already having a leaky window being repaired and had the vents cleaned out in the first 7 months of owning the home. .-= lencib: Falling into Favor´s last blog ..The Mary Example =-.

By: Craig

Craig — Thu, 22 Apr 2010 12:14:32 +0000

@Mike
The advice I had was to use it as a bonus emergency fund. Hold on to it because you don’t know when you might need it.
In my case I’m glad I just paid it off.

By: Mike Piper

Mike Piper — Thu, 22 Apr 2010 11:56:07 +0000

I haven’t heard a lot of people advocate sitting on cash while not paying off a student loan. From what I’ve seen (and this is what my wife and I do), the advice is typically to invest the money at a higher return.

Depending upon the rate of the loans in question (my wife’s are fixed at 2.48%), you can get a higher return without taking on any risk.
.-= Mike Piper´s last blog ..Renters Insurance: Cost and Tips on Buying =-.