But if you’re older, wiser, and deeper in debt, how do you attack those student loans?Specifically, if you find yourself with extra cash, should you pay down student loans early? I recorded this video to very quickly answer why: We’re going to get into the pros and cons of repaying student loans early versus hanging onto that money for things like an emergency fund, retirement, a home, or even just having fun.
I then set up automated monthly payments through each student loan servicer’s website.
But first things first: When you’re starting down a big student loan balance, you want to be sure to do two things: The best way to deal with your student loans is to make a plan, get organized, automate your payments and forget them.
Loan consolidation can help if you’ve got lots of different lenders, but it’s not necessary if you’re organized.
Although I personally believe you’ll do better than 5 percent investing in stocks over the long run, many people may disagree.
In this case, whether you invest or repay the loan early, you come out even.