I have about $27,000 in student loan debt from my under graduate degree. No CC debt. I am currently working and have a 65k salary (first corporate job, I’m a financial analyst). I get paid bi-weekly, approximately $4k a month. I have $30,500 in my savings just sitting there (been meaning to put into a HYSA but I didn’t know if I should pay some of my debt first). I live at home and don’t have any bills besides paying for my parents utilities ($100/month). I live in a MCOL state but have plans to move in with my partner in a HCOL area (where he is from). Should I pay my student loans in full since I have the money? Or is there a more smarter option in paying it off? I know I have the money but I’d probably feel really sad seeing my entire account at 0. But I am willing to do that if everyone agrees that’s the best idea. I just don’t really have anyone to ask for advice. I’m a first gen student who grew up low income so I’ve really been winging it. I’m really proud that I was able to get a job but I definitely don’t want my debt to follow me around. Especially if I want to make a big step in my life (moving out of my parents, in with a partner). What advice would you give? What would you do? Thank you so much
You may find these links helpful:
– [Student Loans](/r/personalfinance/wiki/studentloans)
– [Student Debt Relief Megathread](/r/personalfinance/comments/wxme1a/student_debt_relief_megathread/)
– [“How to handle $”](/r/personalfinance/wiki/commontopics)
– [Debt](/r/personalfinance/wiki/debt)
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*
I’d suggest paying your debt off first. Any debt is stressful. If you pay it off, you can start saving up again and will quickly reach back to 30K, ans save on interest. Even if you put your money in a HYSA, the debt will always haunt you. Living a debt free life is underrated. You say you have about 30k saved up, so put 80 percent in your student loans and use the rest for moving. Moving to a HCOL can be expensive.
Check out the new income driven plan SAVE. Interest that would normally capitalize is forgiven, reducing your effective interest rate.
Also, consider the Public app instead of HYS. I’m getting 5.5%.
Thank you for sharing superb informations. Your web-site is so cool. I’m impressed by the details that you have on this blog. It reveals how nicely you perceive this subject. Bookmarked this website page, will come back for extra articles. You, my friend, ROCK! I found simply the information I already searched all over the place and simply couldn’t come across. What an ideal website.