Summer is officially here and what better way to the start the first week of summer than by wearing summer-ish pieces that can take you from day to night.Or even wear pieces that are not your typical summer look like cut off shorts or off-the-shoulder tops!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.With federally guaranteed student loans, you don’t have that option.Even bankruptcy does not relieve you from paying student loans.
As soon as you make a big loan payment, that cash is gone…you can’t use it for anything else: emergencies, a new home, an investment opportunity, etc.Just got home from Paris and I am already missing the city.There is just something so special about Paris – rain or shine- that is almost indescribable.The bottom line is that repaying student loans is an obligation. Fortunately, if you’re having trouble paying, there are built-in protections like reduced payment plans, grace periods, and forbearance—an extreme program in which you may be able to suspend payments for a brief period of time. “Bad” debt is bad because it either has a wicked interest rate or is designed to pay for depreciating assets like a car.In some cases, you may also be eligible for partial or complete loan forgiveness if you work in public service. However, in an effort to make sure everybody “gets it,” we’ve oversimplified the equation. “Good” debt is “good” because it’s used by appreciating or income-producing assets like a business, real estate, or an education.