Originally Posted by
soamy
I graduated with $20,000 in student loans, what easier way for me to repay them: in the time when prices are steady, or in the time of inflation, or in the time of deflation?
Thank you for your attention!
soamy -
One thing to consider is the nature of your loans: is it just one loan or are there several loans lumped together? Also, do you have a fixed rate or variable or a combination? If you have variable rate loans, you'll have to consider how fluctuations in your interest payments will affect your ability to pay off your loan in a timely manner. For instance, if your monthly payment is $150 and of that, $30 goes towards interest and the rest towards the principle, that's not a bad rate. But at another time, if your interest rate goes up, you might be paying $60-70 in interest... this will force you to pay the loan off over a longer period.
In summary, if you can afford to make extra payments each month, I would do it. This way, you'll be paying down the principle faster and you won't be paying this student loan off for 20 years. That's what I am doing and I have already shaved 2 years off my payback period. You might have to sacrifice in the short term but when you pay it off sooner, you'll be glad you had the discipline to make those extra payments.
