Re: Wiser Use of Money: Pay Off Student Loans / Invest
[ QUOTE ]
[ 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?
[/ QUOTE ]
I just did my taxes last night. 2500 is the max deduction for student loan interest. Came right off my income.
KJS
|