Originally Posted by Nevets

If putting in $4000 a year into your 401k is costing you more than $2000 in student loan interest, then you are potentially better off, depending on how the market does. And that would mean that your student loan interest is astronomically high! Also, keep in mind that your student loan interest is tax deductible. So your effective interest is lowered by your marginal tax rate.

My original point though was that your 401k wasn't just the interest you earned on what you put in. It's the interest PLUS the 50% match. So what you are is actually 50% + whatever interest the total ($6k) earns. Again, your ROI is actually 50% +.




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