So there's no longer a chance of them being discharged?* Honestly, I'd pay them off. But I'm emotional about stuff like that. I would feel so much better having the debt gone. And, it doesn't seem like you're going to be in a better situation by waiting to pay them off anyway. Despite the low interest rates on some of them, you're still paying a ton due to the principal amounts on the loans.
*If there's any chance at all that you'll change your mind about working the full 10 years, I'd wait a bit to make a decision about paying them off.
Yes, koosh is right, I think a financial advisor would be your best bet. There are so many factors here that I think it would be good to sit down with someone and see everything laid out.
I don't know the right answer. I do know that if my DH died (or I somehow got a big windfall), my 50k in loans would be paid off as soon as the life insurance came through. That's part of the reason why we have the policy we have, so debt could be wiped and the survivor could start fresh.
I want those suckers gone and I don't really care what the "best" move is, I know that's best for me emotionally.
I would want to pay down at least half, if not all, of the student loan debt. I have no idea if that's the right thing to do but that would feel so much better not having that hanging over my head.
I would try to listen to a financial advisor though. Good luck!
I'd wait a few months before making any decisions. You want it gone now, but who knows how you will feel in six months.
This. I think you need to talk to a financial advisor but hold off at least 6 months or longer before making any decisions.
This (again). Don't do anything for at least 6 - 12 months. Find a trusted (preferrably fee-only) financial advisor to start. I have a recommendation if you'd like to PM me (no, they do not pay for referrals, I have used them for a while and really like them).
I have heard of so many large (100k+) inheritances being manipulated by a poor financial advisor - a lot of them end up in whole life insurance policies or other investments that conveniently net a really nice hefty commission for the advisor.
Ask your friends, or family you trust who they use.
I'm sorry for your loss but you are fortunate to experience a windfall of types in the aftermath. I don't want to give advice without knowing your full financial picture, but I would say (for me) 200k in loans is huge, so you are definitely smart to consider paying it down.
Pay the private loans off. I'd also talk with a financial advisor, but barring that, can you consolidate your federal student loans into one loan? you may be able to get a better interest rate and lower the amount of the payoff.
I tend to think like bucky on this one. I want to use that money to pay off all debts so I could move onto the next item to think about. Be one less bill to have to worry about.
I agree with the others. I would find a trusted financial advisor and wait at least 6 months before making any decisions. Personally in would be leaning towards paying off the loans.
Post by thatgirl2478 on Jan 23, 2013 9:03:11 GMT -5
If you didn't have the monthly payments on the student loan debt, could you afford to max out your retirement?
I too will recommend holding off on making a decision until a) you know what your repayment would be b) you find out if you can consolidate for a better rate and c) you allow yourself some time to grieve & heal.
I know if it were MY decision to make, I would want to pay off the debt as soon as possible so I didn't have that hanging over my head. Not having the debt allows you to make other decisions independently of worrying about your income (for example, if you wanted to move to a different town or state, if you didn't have debt you wouldn't have to worry about finding a job that paid 'enough' right away, you would only need to worry about your other expenses).