Past Due: Radio 170 – Should I Pay Down Student Loans Or Save For Tuition?
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Amanda is a rising college junior and is trying to make the best use of $500 a month in cash flow: “Do I pay it toward my $16,000 in outstanding student loans, or save it to – hopefully – pay for my senior year tuition in cash?”
First off, I can’t remember anyone in college who had an extra $50 a month to spare, let alone $500. Way to go, Amanda!
On today’s show we discussed:
1) The rule-of-thumb I’ve helped many people use to stay ahead of upcoming, expected expenses when also trying to eliminate their debt.
2) The importance of Amanda entering the real world as a college graduate with a sense of financial accomplishment (and how that confidence will set the stage for her making future goals a reality).
3) Whether borrowing for higher education can actually be called and “investment”, and how to reduce the risk while maintaining the reward of investing in yourself.
If you have a specific question, I’d be happy to answer it and further cultivate the wisdom of the Past Due Radio masses. The experiences of our listener base provide plenty of insight we all can learn from; don’t hesitate to ask – I’m happy to help!