However, my boyfriend wasnt so lucky.
The worst part is, he could easily afford paying more than the minimum payment each month.
How do I get him to see how important paying off student loans are?
I understand his mindset.
I have a great idea, I explained breathlessly to my mother over the phone one day.
I would take out student loans to pay for school and defer my undergraduate loans.
But I had already convinced myself of this plan.
You dont waltz out of a liberal arts degree and into a six-figure job.
Our team has compiled alist of creative waysyou can fatten your bank account this week.
This is a long list, so dont get overwhelmed.
Well keep it updated as offers changes or expire.
($14,738.96 to go!)
Anyway, back to you two.
The tricky thing about paying the minimum or deferring yourstudent loansis that interest continues to accrue.
Its like lingering at a restaurant after youve paid the bill.
I tested this out for you.
Say your boyfriend has a $5,000 Direct Subsidized Loan with a 5% fixed interest rate.
If he makes the minimum monthly payment over 10 years, hell really pay $6,364 for that loan.
I dont know about you, but I dont want to pay an extra $1,364 for anything.
So show him the math.
But then its up to him.
Or is he willing to make sacrifices now for greater peace of mind later on?
For example, maybe hes trying to save for an emergency fund (always a good idea).
If hes working on building up a cash stash, its fine to hold off on student loan repayment.
Ultimately, this is his decision.
But keep talking about this!
Have an awkward money dilemma?
Send it to[email protected].
Disclaimer: Chosen questions and featured answers will appear in The Penny Hoarders Dear Penny column.
I wont be able to answer every single letter (I can only key in so fast!).
We reserve the right to edit and publish your questions.
Dont worry your identity will remain anonymous.
I do, however, promise to give you honest advice based on my own insights and real-life experiences.
No Interest Til Almost 2027?
Balance Transfer = Credit Card Cheat Code