Edgar Vergara’s Story
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So, long story short...
Edgar Vergara made the mistake of
trying to pay off my student loan too fast
My Advice to You is
analyze your loan and decide if it's actually beneficial to pay it off early
Here's the whole story
My parents never used credit cards and I was raised to believe that all debt is bad. When I finally graduated college and got my first job, my priority was to pay off all my student loans. Every paycheck I would pay my living expenses and any money I had left over, I would use to make a payment. This was a mistake.
What I didn't take into account were the benefits of my student loan. I was lucky enough to consolidate all my loans at about a 3.4% rate. The way things are going nowadays, it's easy to find a savings account or a CD that pays at least 5% interest. You can actually profit off of paying your loan later! Another benefit of a student loan is that up to $2,500 of interest paid every year is tax deductible on your gross income. So not only is it possible to make money from your student loan, but it's also possible to decrease your taxes on the interest paid.
Comments (5)
When I finally graduate, you're going to be the first person I call when my loans come due
This is why I chose to work with you, lol.
i graduate in may. thanks for the tip
I'm still confused.. haha.
Wow, I really need to read up on all of this stuff before I start paying loans off here soon. Thanks for the advice!