Should I use my savings to pay off all of my student loans, or should I make monthly payments?

I am 23 years old and have $10,300 in student loan debt. I pay $400 per pay check ($10,400 annually) towards my student loans. I live with my parents and don't pay rent. My only fixed expense is a $233 monthly car payment. I have been at my job for 1.5 years. There is very low turnover at my company so I consider my employment stable. My salary is $44,500. I contribute 25% of my pre-tax income to my 401(k). I make maximum contributions to my Roth IRA. I have $10,000 in a savings account and I am considering using $8,000 of it to put towards my student loans. My savings account is losing money because of inflation. My loans have a 3.6% interest rate. Should I use my savings to pay off my student loans immediately, or continue to make monthly payments?

College Tuition, Debt
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January 2018

Go ahead and pay off your student loans, then immediately start building your savings back up with your $400/pay check.  The fact that you are living at home with your parents rent free and have practically no liabilites, you can build that savings/emergency fund back up within a year.  You are doing great things with your 401(k) and Roth savings, and your point about paying interest on the loans while earning money is sitting in a very low interest bearing account is valid.  If you had rent/mortgage/other liabilities, then I wouldn't advocate temporarily eliminating your savings.  However in your case, this makes sense for the short term.  Keep up the good work!

January 2018
January 2018
January 2018
January 2018