Ask the Hammer : Should I Pay Back My Student Loan?
Jeffrey Levine, CPA/PFS with Buckingham Wealth Partners, aka The Hammer, discusses paying back student loans.
Key Takeaways
- Prioritize paying down higher-interest debt first (credit cards, etc.) rather than interest-free student loans during the moratorium, since eliminating expensive debt saves more money overall
- If you have minimal other debt, consider contributing to a Roth IRA during the moratorium—you can withdraw your contributions penalty-free later if you change your mind, potentially earning better returns than the 0% student loan rate
- Public Service Loan Forgiveness (PSLF) participants should avoid making payments now, as any principal paid down may be forgiven anyway after qualifying years of service
- Take advantage of the time value of money: delaying payments costs you less in real dollars due to inflation, so use the freed-up cash for higher-priority financial goals
Ask the Hammer : Should I Pay Back My Student Loan? In this episode of Ask The Hammer, Jeffrey Levine, CPA/PFS with Buckingham Wealth Partners, aka The Hammer, discusses paying back student loans. Watch more episodes of Ask The Hammer at this link: https://www.finstream.tv/videos/ask-the-hammer/
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