I've been running the numbers to see if it would make sense to temporarily (15 months max) divert my monthly investment dollars to paying off my pesky student loans. Here's the breakdown of what I owe:
9.25% - $3,184
8.25% - $6,436
6.8% - $25,144
5.25% - $5,216
2.39% - $7,403
Based on my calculations paying off the loans first and then adding my normal student loan payment to my monthly investing puts me ahead in the long term, even using a very conservative rate. However, I am currently making more in the market than I am paying in interest on these loans so I'm a little nervous about pulling the trigger on this plan.
Is is crazy to go all gung ho and knock these guys out or am I thinking too emotionally and it makes more sense to stick with the current plan (paid off in 5 years making double payments)?
As a note, with our income we're already phasing out of the tax deduction for the student loan interest so that's not really a factor.
9.25% - $3,184
8.25% - $6,436
6.8% - $25,144
5.25% - $5,216
2.39% - $7,403
Based on my calculations paying off the loans first and then adding my normal student loan payment to my monthly investing puts me ahead in the long term, even using a very conservative rate. However, I am currently making more in the market than I am paying in interest on these loans so I'm a little nervous about pulling the trigger on this plan.
Is is crazy to go all gung ho and knock these guys out or am I thinking too emotionally and it makes more sense to stick with the current plan (paid off in 5 years making double payments)?
As a note, with our income we're already phasing out of the tax deduction for the student loan interest so that's not really a factor.