Is it wrong to fund retirement and investments while I still have student loan debt?

August 12th, 2009 | by admin |

I have student loan debt with pretty low interest rates (5% and 3% respectively). Is it better to put extra money toward paying off the student loans quicker or putting that extra money into an IRA and/or good mutual funds which would ideally earn a higher interest rates than the loans?

  1. 5 Responses to “Is it wrong to fund retirement and investments while I still have student loan debt?”

  2. By David M on Aug 12, 2009 | Reply

    If your student loan rate is low enough (and yours is) this is a good idea. Even better if you sign up for a 401K with a match by your employer.

  3. By kapn on Aug 13, 2009 | Reply

    Depends………what is the intrest rate on your student loan….what is the return on your investments….

  4. By Maggie Jeans on Aug 14, 2009 | Reply

    Sounds like you can make money investing – more than you are paying out – espcially if you have a company match for your funds.
    Still, a lot depends on your job situation. If you have any risk there, you may be better off plowing all your money into those loans and paing them off. That way if you lose your job, you don’t worry about the debts.

  5. By unskilled idiot on Aug 15, 2009 | Reply

    try never to pay off those debts

  6. By Jennifer on Aug 16, 2009 | Reply

    Hi,
    I used Credit Solution to settle my debt and improve my credit score.They managed to reduce my debt up to 58%.It’s legitimate. I came across this company on NBC News Special Edition.Check it out here:

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