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Wednesday, November 22, 2006

Bye-bye Student Loans

I have about $3,200 in my student loan balance and about $112,000 in my mortgage loan balance. My student loan interest rate is at 3.875% and my mortgage loan rate is at 5.75%. I have $5K cash that I can use to repay my loans. It seems to make more sense to use the extra money to pay off my mortgage loan first. But I've decided with the help of my accountant to just pay off my student loans totally. That way, at least I clear out one debt account. According to my accountant, it would not be much of a tax savings for me even if I put the money in the mortgage loan.

I went online and sent a payment online to my student loan provider for the payoff amount (which is different from the balance). Now I am finally freed of my student loans.

3 Comments:

At 12/01/2006 04:53:00 PM, Blogger moneymonk said...

From 112K to under $4K, Wow!!!

That is amazing, how did you do it in such a short time ?

 
At 12/01/2006 04:59:00 PM, Blogger moneymonk said...

Sorry GM, I misread it. I notice the 112K was your mortgage balance.

 
At 12/19/2006 05:51:00 AM, Anonymous Anonymous said...

congratulations on getting rid of your student loan, I have starting the long process this year of trying to pay down mine as quickly as possible, likely around 5 or 6 years.

 

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