View Single Post
  #7  
Old 04-13-2007, 03:15 PM
disjunction disjunction is offline
Senior Member
 
Join Date: Nov 2004
Posts: 3,352
Default Re: Wiser Use of Money: Pay Off Student Loans / Invest

[ QUOTE ]
Something to keep in mind is that a lot of your investments will be taxed, so you'll need a higher return on an investment than interest rate on your loan to make the investment the correct choice. At 6.8% you should almost certainly pay off the loan before investing.

I have a student loan at 7.2% that I'm aggressively paying down before I start investing. I'm pretty sure I'm making the right choice.

[/ QUOTE ]

Good point about taxing investments. But dethgrind can't you also deduct student loan interest off of your taxes, to the point where the effective interest rate is much less?
Reply With Quote