Today’s post is your own tale on why i did son’t spend my student loans down during grad college, though I experienced the chance to. There are numerous facets you should think about whenever the decision is made by you of whether or not to reduce student loan debt during grad college. Within my situation that is particular on both the mathematics for the situation and our disposition, it made more sense to contribute cash with other economic objectives during grad college.
I had $17k of student loan debt, $16k subsidized and $1k unsubsidized when I graduated from undergrad. We thought we would defer my student education loans inside my postbac fellowship and PhD, and I didn’t spend my student loans down in that duration. Although my stipend afforded me the flexibleness to help make progress to my loans if i needed to, I experienced greater monetary priorities than making repayments on financial obligation which was effortlessly at 0% interest.
My Debt Was Not Pushing
I’ll make a small edit to my declaration that i did son’t pay my student loans down in grad school: We kept my $16k of subsidized figuratively speaking throughout my training duration, but We paid down the $1k unsubsidized loan through the 6-month grace duration after my graduation from undergrad. I did son’t just like the reality it was accruing interest, unlike my subsidized loans, therefore I paid it well the moment i possibly could.
Since the sleep of my loans had been subsidized, not merely did we not have to produce re payments throughout their deferment, these were maybe perhaps not interest that is accruing. I became money that is effectively borrowing 0% interest. Whilst in some situations it could nevertheless seem sensible to organize to spend down or from the loans once they arrived on the scene of deferment, in my situation I experienced higher economic priorities. Read more