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Discuss Latest WCI Blog Post: The Student Loan Holiday Has Been Extended Again; Should You Pay Off Your Debt Anyway?

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  • Discuss Latest WCI Blog Post: The Student Loan Holiday Has Been Extended Again; Should You Pay Off Your Debt Anyway?

    The student loan holiday has been extended yet again, but some believe you should make payments anyway. Is that actually the right move?

    The post The Student Loan Holiday Has Been Extended Again; Should You Pay Off Your Debt Anyway? appeared first on The White Coat Investor - Investing & Personal Finance for Doctors.



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  • #2
    Negatory. For same reason shouldn’t put extra money toward mortgage. Ride the 0% til the wheels fall off. At a minimum put it in savings account at 0.5% interest and lump sum pay it once it resumes

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    • #3
      Sure is nice that our government has decided to address the root cause of college tuition being so high.

      Forgiving debt and keeping rates 0% will absolutely discourage students from borrowing too much.

      It will also discourage Universities from raising tuition.

      This will slow (reduce) the rate of rise of tuition and encourage responsible efficient management of resources.

      It will also lower taxes and diminish inflation (and perhaps create jobs).

      Awesome.

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      • #4
        Originally posted by medicoFIRE View Post
        Negatory. For same reason shouldn’t put extra money toward mortgage. Ride the 0% til the wheels fall off. At a minimum put it in savings account at 0.5% interest and lump sum pay it once it resumes
        Great point except for those who are planning to refinance their loans over the long run 15-20yrs. Might be better to lock in a low rate now then wait until they've jumped up when the loan holiday is over.
        Helping student loan borrowers manage their student loans. StudentLoanAdvice.com. [email protected]

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        • #5
          Hopefully those who are not going for some sort of forgiveness or program will just slam them once the rate moves above zero. It does not matter much if the interest rate is 3% or 5% if you pay them off in 2 years.

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          • #6
            Ya thats what I plan on doing. Paid within 2-3 years tops. Ideally 1-2 years but I want to live slightly above a resident lifestyle. Sure could have locked in rates super low but that would have also encouraged me to drag it out as long as possible. This will motivate me to pay it off ASAP after forbearance ends. Especially with a couple of expected half point interest rate hikes potentially in the near future

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