A little about me. I am 28 years old with approximately $170k in [graduate/law school] student loan debt at 6.25% interest. I am enrolled in an income driven payment plan ($280/month, all of which goes to interest payments only) in which the federal government pays 50% of my unpaid interest payments each month, for the next 3 years. I currently make roughly $42k/year but am expecting a significant salary increase after I am bar-certified as an attorney. I have been focusing my savings into an emergency fund in a traditional savings account earning almost 0 interest.
My question is.. after I have reached a level in my emergency account that I am comfortable with, am I better off funding a Roth IRA or increasing my student loan payments beyond my current payment plan?
If my question is too broad or you need more information to answer, I will happily provide more details about my situation. Before anyone starts with "you are earning far too little income for that amount of debt," yes, I am very aware. I am constantly evaluating my employment and salary prospects in order to change my situation. My question is more directly related to the benefits of funding a Roth IRA vs paying down the student loan interest.
Submitted April 02, 2019 at 11:03AM by Not_Qualified https://ift.tt/2OFCp6G
