Originally Posted by
PSA help
Paying off high interest loans will save you a TON of money in the long run!
But student loan interest is tax deductible up to $2500? If you're incurring more than $2500 a year in interest, then yeah, pay it down. But otherwise, you get back at tax season (assuming your federal withholding was >=$2500). Though if you've got nothing to invest the extra cash in, loans aren't bad I suppose.
Originally Posted by
BizJet
That might be why my parents told me to bank the bonus, in savings, and just do my monthly payments out of it. I need to call them and find out what they do.
Depends. Do you have multiple loans? Or did you have them all consolidated?
If you have multiples, you can just start paying down the interest and the principal on one, while just making the minimum on others (if decreasing principal is your goal).