My student loans are approximately 195k at 6.49%. The minimum monthly payment is about $1900 but I've been paying $2300 to pay them down quicker. I have the opportunity to refinance to 7-year fixed at 4.875% which looks like it'll save me about 60k over the course of repayment. The monthly payment would be about $2800 which is $500 more than I've been paying and $900 more than the minimum of my current loans.
I'm fortunate to make enough where I can still live fairly comfortably paying $2300 monthly for student loans. I would like to retain this level of comfort after refinancing, which would require contributing less to my 401k.
I'm currently contributing 16% of my salary which just about maxes out my yearly contribution of $18,500. My company matches 50% of 6% contributed. If I were to change my contribution from 16% to 6% I would have about $530 extra each month which would allow me to afford this new loan while not throwing my current budget out of whack.
This seems like a no-brainer to me, but is there anything I could be overlooking? I know my taxable income will be a little higher under this plan as I'm contributing less to 401k but I don't think it will be that impactful.
Thanks in advance for any input.
Submitted April 22, 2018 at 12:39PM by LostToApathy https://ift.tt/2F7e3wq
