Student Loan Repayment Advise
Posted: January 30th, 2023, 2:37 am
Hello,
So I will try to make this short. I have Two Federal Student Loans; ( 1 ) $20,500 @ 5.29%, ( 2 ) $20,500 @ 6.54%. I graduate This June, and repayment begins April 2024. My annual income Last Year was around $17,000 and this is because I have been working part-time while at school. Once I graduate, I hope to get into my field of study and increase my income.
Currently, I have $5,500 saved up to tackle my student loans. My parents are also willing to give me another $5,000 to help ( should I need it ). I also have about $6,000 in investments on the stock market. And finally, I have a potential $10,000 from a scholarship I applied for, but I won't know if I win until a few weeks ( I am moving forward with this plan assuming I do not win that scholarship ).
I would like to know if any of you have any advise on how I can get rid of this loan ASAP. I would like to pay off as much as I can before repayment begins. I feel confident in my ability to pay this off within a few years. I really do not see myself dragging this debt on for more than 3-5 years. ( 1 ) Should I start making payments on the Loan with the higher interest, given that both balances are the same? ( 2 ) Should I withdraw my investments and put them towards my loans? Any help would be appreciated, I will list my details below again.
Loans:
( 1 ) $20,500 @ 5.29%
( 2 ) $20,500 @ 6.54
Saved up:
Myself - $5,500
Parents - $5,000
Investments - $6,000
Scholarship:
( 1 ) $10,000
So I will try to make this short. I have Two Federal Student Loans; ( 1 ) $20,500 @ 5.29%, ( 2 ) $20,500 @ 6.54%. I graduate This June, and repayment begins April 2024. My annual income Last Year was around $17,000 and this is because I have been working part-time while at school. Once I graduate, I hope to get into my field of study and increase my income.
Currently, I have $5,500 saved up to tackle my student loans. My parents are also willing to give me another $5,000 to help ( should I need it ). I also have about $6,000 in investments on the stock market. And finally, I have a potential $10,000 from a scholarship I applied for, but I won't know if I win until a few weeks ( I am moving forward with this plan assuming I do not win that scholarship ).
I would like to know if any of you have any advise on how I can get rid of this loan ASAP. I would like to pay off as much as I can before repayment begins. I feel confident in my ability to pay this off within a few years. I really do not see myself dragging this debt on for more than 3-5 years. ( 1 ) Should I start making payments on the Loan with the higher interest, given that both balances are the same? ( 2 ) Should I withdraw my investments and put them towards my loans? Any help would be appreciated, I will list my details below again.
Loans:
( 1 ) $20,500 @ 5.29%
( 2 ) $20,500 @ 6.54
Saved up:
Myself - $5,500
Parents - $5,000
Investments - $6,000
Scholarship:
( 1 ) $10,000