Sunday, November 13, 2011
Would it be wise to start paying off debt now as opposed to saving so I don't need to take out another loan?
I am a college student, and I currently have three loans: a standard unsubsidized loan of $4,489.00 at 7.65% that I am paying interest for now; an unsubsidized loan of $5,377.00 at 6.8% with $133.72 of outstanding interest that is growing and will capitalize once I graduate (in two years), and a subsidized loan of $4623.00 at 5.6%. I will most definitely need to take out another loan for next semester, so I am trying to decide the following: Should I attempt to pay the interest on the unsubsidized loans (and even attempt to start paying off principle balance), or should I continue to only pay the interest on the standard unsubsidized loan and save my money for next semester's tuition so I have to take out less unsubsidized loans?
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