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Pay off student loan debt or invest?
(lemmy.world)
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this post was submitted on 27 Jul 2023
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Do you have an emergency fund built up? If you don’t already have 6-8 months of expenses stashed away, I’d start there. Then keep some on hand for unexpected expenses. Like others have said, the decision depends on interest rates for the loans.
Another thing to consider is opportunity cost- if you repay the student loans off, while that helps long term it does deprive you of some liquidity. So, if you need to buy a car or another expensive item, you’ll have a loan potentially at a higher rate than if you’d held onto the cash.
That's a good point. Putting the money into the market allows me to access it needed later on if I need to sell at some point. Forever will not have access to that sum of money if I pay off the entire loan.