I am currently
$50k in debt from school. I have
$9,500 in saving specifically saved for paying off student loans. I am wondering if I could get some quick advice as to what/why I should be paying off.
Here is my loan situation:
- $20k loan at 9% interest to come in Dec; Discover, private.
- $7.5k loan at 6% that I am currently paying off @ ~$200 month; Perkins, federal.
- $23k loan at 3-4% currently paying off. Federal.
I am really wanting to pay off my 2nd loan because I can hit it in one shot right now. I would lose the monthly payment and I would be able to put that towards my Dec loan which I plan to focus ALL extra money to.
My question is this, does it pay to focus NOW on the higher interest rate loan? If I pay the 6% I will be losing more money on interest... but I would have more money to pay it off because of the 2nd loan being gone.
My current salary/expenses won't be changing for at least a year (as far as I can see)