Wednesday, July 6, 2011

To Pay Down Student Loan or Not?

I’ve toyed for quite a while with paying more on my student loan.  I owe just under $7,000 on it and I pay $112.53 per month.  While this is not a huge sum to pay monthly, it annoys me that $30 of my payment goes to the interest on the loan each month.  I also don’t like to have another obligation of a student loan payment.  There are so many monthly obligations that I’m not willing to ever cut out like phone, electricity, DirectTV (possibly in the future, we shall see), and insurance. 

Y and I have always tried to keep our monthly bills as low as possible so we can save our money for the next thing we want/need.  I think that this attitude has served us well but I haven’t applied it to my student loan.  Y seems to think that it’s a low amount every month and it isn’t worth it to use our money out of savings to pay it off.  He would be fine with me paying extra every month to get rid of it though.

I wrote yesterday that I am feeling very bored with my annual goals.  I think I might be feeling like that because I’m not sure where to put my energy.  Putting my energy into paying down my student loan would be a good use for it that I would not likely regret in the future. 

I’ve received numerous comments in the past that have suggested that I use our savings to pay off my student loan.  I’ve already made the decision that I’m not going to do that.  However, what do you all think about me paying extra monthly to it?

9 comments:

  1. I think it's a good idea. It feels good to have a goal and this is definitely a good one. I agree about needing motivation, I am in the same boat...I'll have to figure out my next goal too!

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  2. I agree and wouldn't use your savings to pay it off but sure I think its a great idea to put extra each month towards it. That's about $360 a year in interest. Plus is just one more annoying bill gone and an extra $112 in your pocket a month. :)

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  3. I would pay that beast off asap. It will be gone! $360.00 a year is a lot of money, if you continue to pay the small payment you will pay over $2000.00 in interest. Pay it off. I could use $2000.00 to buy something.

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  4. I sat go for it. Pay the little extra. It will help and you won't regret it. Plus it will still be a small amount.

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  5. I wouldn't clean your savings or anything out to pay it off, but I would defintely start paying a little extra here and there if you could afford it. :)

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  6. i'm with serendipity - don't clean out your savings, but def try to get it gone!

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