Should I pay off my student loans?

I have roughly 40K in students loans. Currently the interest rate is 4.125%. After 24 timely monthly payments, the interest rate will drop to 3.125%. I was planning to pay it off as slow as possible because the interest is so low that I could make the spread from investments. However with current interest rates dropping, I'm wondering if i should just pay off my loans now (I have the ability to do so). What is the financially smarter thing to do?

Pay off depts now. When you finish paying your loans, keep the monthly payments you would normally pay into YOUR bank account. Watch how fast your bank account grows.

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Okay I see your dilemma - and that is a tough call. But how the HECK did you manage to get such a low rate for your loan?! That's INCREDIBLE! I am very jealous (lowest loan I have is 5% - Perkins).

Given our country's current economic status, I would recommend paying off your debt as soon as possible. Interest rates for savings accounts and investments are fluctuating like mad now, but those loans aren't going anywhere fast.

Furthermore, paying off your loans will help you raise your credit score (if that's an issue), allowing you to do more fun things in the future (Like take out more loans, yay!)

Make the minimum payments, and put what's left over into a 401K and into a strong investment option.

I am in a similar situation. As you probably know, if you have ANY other debt that has a higher interest rate than those loans such as car loan or especially credit cards, don't even think about paying more than the minimum on that student loan debt. If you have no other debt, you really could do either. I personally would pay the minimum forever on debt that is 3.125% and invest anything extra you would have paid on the debt in mutual funds made up entirely of stocks if you are in your 20s or 30s. The stock market has historically averaged 10% per year. The stock market has been performing poorly since the summer of 2007, and with talks of the U.S. going into recession, you may not be comfortable with going the stock route right now. If this is so, keep only paying the minimum on your student loans, and put the excess money in money market funds that pay about 3 or 4%. You can "park" it here until you are comfortable investing in the stock market. I personally pay the minimum on my low interest student loans and incrementally buy shares of mutual funds. That way you can be sure that you get to purchase at least some shares when the stock market is low and will reap the benefits when it recovers. It is really hard to predict when the stock market will bottom out, but it is down significantly from its peak right now. I kind of view the stocks as being "on sale" right now. But again, the next few months at least do kind of look potentially grim, so don't invest any money in the stock market that you will need in the next two to five years. Good luck.

I would suggest paying it off. I you pay just the minimal, you will probably end up spending close to 80k over the life of it.

Since it is probably simple interest calculated, the faster you pay them off, the better.

However, also be putting money away while doing this.

yes, you should pay off your student loans. student loans don't go away after the state's statute of limitations. if you don't pay if stays on your credit report FOREVER!!! if you can pay, just pay.

You make the desicion here are the options:

Payoff early and save money = build wealth

Be in debt for 20 years just paying slow, slow, outflow of money instead of inflow

Perhaps You ought to google it first ,nevertheless if you prefer some direct resource ,here might be your choosing.
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