Should I pay the interest on my student loans?
I just graduated from a university and am about to start working. I, like a lot of students, have a significant amount of educational debt. My mom thinks I should pay the interest that has accumulated, but I want to save it for a down payment on a house. I had one financial advisor tell me that educational loans have the lowest interest rate, so I should pay them off at the slowest rate possible. Is this true? I have about $95,000 in debt, with about half subsidized and half unsubsidized. Should I pay the interest to avoid capitalization? Thanks!
You should try to do both. Pay down that debt and start saving money. It will be hard to get a loan for a home with that $95,000 of debt you accumulated. I hope you got a good education to help you fill a higher paying job so you can pay this down and get the things you want. Good luck.
