going to sell my vehicle for $12k tomorrow. I currently live off of a $19k/year stipend after taxes. So I have two loans that I would like some advice on. I know of the snowball and avalanche method but wonder what your thoughts are on my situation.
Student loan- $20.5k @ 6% apr. is accruing interest. interest accrued $1400. I make about a $200 payment each month but do not do it every month and most likely won't do it consistently while in school.
Army/truck loan- $10k@2.99%. I pay $350 a month with a $110 insurance payment. this is roughly 26% of my monthly income going to this loan and truck insurance. I have been told by a wells Fargo financial adviser to pay off this loan as student loans have opportunities to be paid for by employers and there are repayment options once I graduate.
So my problem is that I know I will save the most money in the long run if I pay off my student loan. If I do this option I will still have to put about 20% of my income every month towards the army loan I used to refinance my truck loan. If I pay off my army loan then I will not be in repayment on the student loan and can put whatever I like towards it each month while living a better quality of life. Once I graduate in 3 years then I can pay off the student loan more aggressively with a better paying engineering job. So I see benefits of both options but am just wondering if there is anything else I have not considered.
Submitted April 27, 2019 at 12:50AM by gijoe75 http://bit.ly/2GL6FKY
