Since COVID hit I (27F) have moved back in with my parents because I’m currently a student. My parents aren’t rich but they don’t ask me to contribute financially because they know that I have debts (student loans and credit card) to focus on. Because of this I’ve been able to start knocking out debt and it’s gotten me thinking about working to start chipping away at some of my undergrad loans, which is what brings me here.
I’m a law student and I’ve made a decent amount of money this summer that I’d like to use to pay down some debt but I’m not sure which route is best:
Option 1: I have a Perkins loan that has been in educational deferment the past 2 years and no interest has accrued. I could absolutely pay $5k loan off and still have money left over from my summer pay to do what I want l.
Option 2: I have some loans with Sallie Mae that have accrued interest over the last two years since I didn’t have income to keep paying them the way I did in the 3 years immediately after I graduated from college. One of these loans has accrued around $5k in interest. I could pay that off but likely won’t really be able to get I to the principle and would end up spending the next year just trying to hold the I Teresa close to $0 until I start working Fall 2021.
This might seem like an obvious answer to some of you guys, but which should I use my $5k on? I feel as if I pay the interest in the Sallie Mae loan I’ll end up wasting money over the next year just keeping the interest down but I’m no finance wiz so I wanted to come here for some advice. TYIA!
Submitted July 17, 2020 at 10:16PM by PlsDontCutMyPay https://ift.tt/2WuM0CD
