Ragoo said:

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dantes said:

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Also, if the loan was not paid off, the interest would compound at 8% for 30 years vs 7% for the investment. Should be pretty apparent what the better decision is ex tax shields. Would you rather invest at 7 or 8%?

Basically, the answer (excluding inflation, individual taxes etc since those are all unique) is to put 100% towards the -8% debt and then contribute to the 7% thereafter

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we are talking about expedited payments, not zero payments.

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It does not matter expedited, etc. It is a binary problem. Either contribute 100% or not. One is a better asset class than the other.

Model it out- it will be apparent

Ragoo said:

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Bigsteve said:

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Ragoo said:

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Screw the debt, pay yourself and your future self first.

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Democrat much?

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what? How in the wide world of sports is the recommendation that you save for your future above paying down debt a Democrat ideal

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Debt is the absolute worse predicament someone can get into. I'm not against someone saving for retirement, but you can't say "screw the debt" and be serious. You too on the debt, you're morally obligated to get rid of it.

Bigsteve said:

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Ragoo said:

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Bigsteve said:

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Ragoo said:

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Screw the debt, pay yourself and your future self first.

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Democrat much?

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what? How in the wide world of sports is the recommendation that you save for your future above paying down debt a Democrat ideal

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Debt is the absolute worse predicament someone can get into. I'm not against someone saving for retirement, but you can't say "screw the debt" and be serious. You too on the debt, you're morally obligated to get rid of it.

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maybe my "screw the debt" comment was taken too literal. It was geared towards being less focused to pre-payment and being more focused on putting money aside early.

Well then...ok. Apologies for the Democrat remark..

Most of the advice here seems to be from the perspective of normal loans with typical terms you would see for personal loans. However, students loans can be treated quite differently with other available options such as income driven payable to plans where the balance is forgiven after a number of years. I'm not an expert but I posted on this topic under a different thread at https://texags.com/forums/57/topics/2985547
You should check out some of the specific options that may be available for student loans that you may not be aware of.

Shiner Bock said:

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Look for a VA or federal govt pharmacy job. Qualifies for PSLF, 5% match, pension, etc.

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Good luck getting into the VA without a residency these days. That's Primarily only what they hire

1) emergency fund
2) payoff all debt (try to be done in two years)
3) 15% into retirement


Start contributions into your 401K now even if the contributions are 6%; you can raise to the max percentage later.

Start small contributions into an emergency fund, but don't make the contributions your main focus.

Get your debt paid off; that is paramount and should be your main focus.

People may disagree with me, but the purpose of the emergency fund is to get through an unexpected loss of employment. If you can do that with a credit card or by taking contributions out of a Roth IRA (no penalty there) that's your emergency fund when you are young. If you have an emergency job loss contingency plan that includes cutting expenses to the bone by moving in with your parents, your emergency fund needs to be even smaller. Save aggressively in some other vehicle, not a magic no risk savings account. Especially when you're young.

Cue Dave Ramsey disciples to tell me I'm an idiot.