“Never pay off that student loan before it is due.”
On what grounds?
“Never pay off that student loan before it is due.”
If you don’t pay your mortgage, they take away your house.
If you don’t pay your car note, they take away your car.
If you don’t pay your bookie, they break your legs.
If you don’t pay off your student loans, they can’t take away your education.
And student loans have lower interest rates than other loans.
The key is to save enough cash for grad school and then borrow as much as you can at 3% and invest that cash you got from the loan.
Student loans should be one of the last things you pay off. They can’t revoke your diploma. They can’t take away what you learned in college.
Student loans are also fantastic ways to build credit as long as you keep them current.
They are usually very low interest. Many times only like around 3-5%. So the student loan is usually the cheapest debt you have. Unless you have nothing else to pay off or spend your money on...just pay only what you need to.
Remember that you must maintain some debt or your credit score will start to fall. It goes against common sense, but that’s just the way the banks calculate the score. Credit scores are not only based on how you manage your money...it’s also based on your payment HISTORY. IF you have no debt and no payment history...you lose 50% of your score. People have actually be declined mortgages because they never took out any debt....and always paid cash for everything.