Student loan question

[jon86]

Student loan isn't a traditional debt.
Doesn't show up on checks.

I treat it as additional tax.

So should everyone else imo.

I treated my student loan like an additional tax, and it felt really good when I paid mine off automatically in about six years through standard deductions from income.

My plan is to have enough savings for my kids so that they don't need to take out any loans for university. Any scholarships that they can get will be gravy on the potatoes.

 

[theone8181]

Not as clear cut as I first thought. Just another thing to throw in there, part of my mortgage comes off fixed rate in about 18 months (about 20k worth). I'm leaning towards overpaying that part (the remaining bit of my mortgage is fixed for another 5 years).

 

[dowie]

Whether you overpay the mortgage or student loan is generally pretty clear cut, what is the interest rate and are you getting a higher rate elsewhere?

(And/or in the case of the mortgage there can be some marginal issues like would you get a lower rate on the entire loan if you're close to some LTV threshold).

 

[dlockers]

Whether you overpay the mortgage or student loan is generally pretty clear cut, what is the interest rate and are you getting a higher rate elsewhere?

(And/or in the case of the mortgage there can be some marginal issues like would you get a lower rate on the entire loan if you're close to some LTV threshold).

Disagree it's clear cut in this instance. Student loan is only payable over a certain amount of earnings and duration - he could eek it out and never pay it back. Obviously maths required! If he's ever unemployed that debt doesn't need servicing.

Mortgage obviously always needs servicing.