To pay or to invest? my student loan is @ 7 % and I just received enough money to pay it all off!?

should I invest the money instead?

Paying off a 7% loan is a guarenteed 7% return. Right now you can't get that anywhere else. Yes the markets return an average of 10-11% per year, but that's not guarenteed.

Pay off the loan, but make a promise to yourself that you will put into investments what the monthly payment would have been for the loan. That way you get the 7% savings while still building up an investment portfolio.

Pay it off, that will save you a huge amount of money in the long run on interest. Then if you want you can always take the money you were paying towards the student loan and invest it.

well i would pay it all off i mean when you needed money they lend it to you it would only be nice to return the favor however u know those loan companys just want your money however i would still return unless you tell me what ur gonna invest in

kill it off.

I would pay it all off. No debt is better then any debt, especially if decide to make a large purchase. Its better all the way around.

Pay it off. Doubtful that you'll find an investment that would pay a high enough percentage to compensate for the 7% you're currently paying on your loan. Plus you'll be in a better position financially should any unforeseen emergency arise.

Don't listen to anybody who has answered in front of me. 7% is not THAT bad. If you find some good stocks or mutual funds, you can get at least 10% a year, especially now since the market has come down a significant amount lately.

Depending on your age, income, net worth, debt/equity ratio, # of dependents, expenses and overall risk tolerance, you should either pay a little, lot, or all of it off. Make sure to also consider market conditions when deciding how much to pay off and how much to invest.

If you need help in deciding how much to pay off, ask someone with investing experience or seek a financial advisor. Most importantly, KNOW WHAT YOU ARE DOING WITH YOUR MONEY BEFORE YOU DO IT.

ALWAYS pay yourself first.

Take 10% - 20% off the top and put it into a high interest savings or money market fund of some kind.

Use the rest to pay off the student loan. Even if you have to make a few payments thereafter - you are still in good shape.

Pay off. Any money you may earn in investing it will most likely go towards the extra interest your building up on your loan anyway.

I suggest you to invest in the Stock Market with the help of a Portfolio Manager with over a decade of experience like myself.

Any decent Mutual Fund will return at least 14%