2006-07-01 16:13:50 · 8 answers · asked by school loan forever 1 in Business & Finance ➔ Personal Finance
It all depends. How old are you and what is the amount of the debt? What interest rate are you paying on the debt? What other investments are you considering? Are you currently working and how much are you earning?
This is not a simple question to answer
2006-07-01 16:55:33 · answer #1 · answered by ps2754 5 · 1⤊ 0⤋
If you have a loan at 5% and the investment makes 10%, your real return is only 5% (because the interest on the loan is eating up the other 5%). Pay off the loan first, then invest. Unless we're talking about investing in a 401(k) with a company match - do that, up to the company match
2006-07-01 23:35:16 · answer #2 · answered by homeschoolmom 5 · 0⤊ 0⤋
If you will be guaranteed a greater interest rate than the one you are paying on the student loan, make the investment. If not, pay off the loan.
2006-07-01 23:19:17 · answer #3 · answered by karen wonderful 6 · 0⤊ 0⤋
If the return on your investment is better than the interest rate of your school loan then you should invest.
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2006-07-02 01:03:08 · answer #4 · answered by Anonymous · 0⤊ 0⤋
depends on the loans rate and the investment's rate and risk......if you can do a cd that's greater than the loan......invest, you'll come out on top, even if it's only a percent or two. school loans are usually very low and cd's are getting higher now days
2006-07-02 00:58:19 · answer #5 · answered by johnny c. 3 · 0⤊ 0⤋
Pay the loan off. It will be worth it in the long run.
2006-07-01 23:16:04 · answer #6 · answered by jinx4swag 3 · 0⤊ 0⤋
pay off student loan. less debt in your life will help you feel freer to pursue other things in your life.
2006-07-01 23:16:37 · answer #7 · answered by territheterribleliar 4 · 0⤊ 0⤋
pay off the debt because when you lose your shirt in the investment, you'll still be in debt..double debt
2006-07-01 23:58:15 · answer #8 · answered by Anonymous · 0⤊ 0⤋