Timeline for Why might it be advisable to keep student debt vs. paying it off quickly?
Current License: CC BY-SA 3.0
18 events
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| Aug 25, 2014 at 19:35 | comment | added | GµårÐïåñ | @user2813274 you are correct, I thought I mentioned that but if I didn't, then yes, public servants in general but there is varying degree of forgiveness based on what kind of public servant. | |
| Aug 25, 2014 at 17:53 | comment | added | user2813274 | I think the loan forgiveness is more vague than just teachers - it applies for most "public servants" who work for the government or non-profits (including most hospitals, making a great deal for doctors) | |
| Mar 19, 2014 at 13:58 | comment | added | BrianH | One more scenario must be added to the list of non-payment: death of the debtor (student). Unlike other debts, at least in the US, federal loans - and many private loans - are extinguished/forgiven upon death with no obligation to repay regardless of finances of the estate. Things like houses, cars, appliances, etc, don't work the same way. If you have family or dependents, then a debt they don't have to pay if something happens to you suddenly MUST move down the list in favor of having life insurance, emergency savings they would have access to, etc. As someone who's been there, this is BIG. | |
| Mar 19, 2014 at 11:20 | comment | added | Steve Jessop | @Brian: ah, thanks. So if you're thinking of getting even debt as cheap as a mortgage any time soon, then it's absurd to pay off your Federal student loan (if any). That alone might solve the mystery of B's advice, but we'd have to know more details to be sure :-) | |
| Mar 18, 2014 at 23:19 | comment | added | Rag | @SteveJessop Federal student loans are around 3.8% while credit card debt averages around 15%. 30-year mortgages are around 4.3%. | |
| Mar 18, 2014 at 12:51 | comment | added | Engineer2021 | Also Stafford Loans (sub and unsub) are eligible.. Perkins is eligible after 5 years readysetrepay.org/repaying/tlf.html#loans | |
| Mar 18, 2014 at 12:50 | comment | added | Engineer2021 | "The Teacher Loan Forgiveness (TLF) Program was created to encourage people to become educators within designated schools that serve low-income families." - It's not just any school, certain ones | |
| Mar 18, 2014 at 10:22 | comment | added | Steve Jessop | There's a further consideration, which is that perhaps B would be advising A to borrow money anyway for one purpose or another. If the student loan is relatively cheap debt that has already been loaned (and therefore cannot be refused) then it makes way more sense to keep it than to pay it off and apply to borrow elsewhere. How do student loan rates compare with personal loan rates or mortgage rates? I don't know, not being from the US, but I can take a flying guess "somewhere between the two" ;-) | |
| Mar 18, 2014 at 2:21 | comment | added | o.h | You are forgetting that you can also defer payments if you were to go back to school full or part time. So it might make sense to delay if you are planning to go to grad school in the 10 years after graduating. Also, no CD or savings account will pay student loan rates, but the stock market has far exceeded them for the past few years. Obviously it is not guaranteed, but there is nothing wrong with making a conscious choice to invest rather than pay down the low interest debt. | |
| Mar 17, 2014 at 18:21 | comment | added | GµårÐïåñ | Yes it is in the context of the United States, my apologies for not making that explicitly clear. @Ian, a peace officer would be a police officer of some kind, although firefighters, paramedics, correction officers, social workers, and emergency dispatchers are included as well. | |
| Mar 17, 2014 at 15:22 | comment | added | Ian | What is a "peace officer", is it like joining CND? | |
| S Mar 17, 2014 at 14:25 | history | suggested | gerrit | CC BY-SA 3.0 |
Added vitally important bit of information that this answer relates to the USA (it is so important that only a comment is not enough)
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| Mar 17, 2014 at 13:56 | review | Suggested edits | |||
| S Mar 17, 2014 at 14:25 | |||||
| Mar 17, 2014 at 12:05 | history | edited | Chris W. Rea | CC BY-SA 3.0 |
added 34 characters in body
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| Mar 17, 2014 at 6:21 | comment | added | eis | It should be noted that the answer is given in the context of United States (I assume). At least where I live laws are different and there are no such ways of getting out of paying the student loan. | |
| Mar 17, 2014 at 3:30 | vote | accept | Millie Smith | ||
| Mar 17, 2014 at 3:16 | history | edited | GµårÐïåñ | CC BY-SA 3.0 |
added info and formatting
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| Mar 17, 2014 at 3:10 | history | answered | GµårÐïåñ | CC BY-SA 3.0 |