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passamaquedey OP t1_ja92diq wrote

Reply to comment by GeorgeRetire in How should I go about paying off my student loans? by passamaquedey

So I shouldn’t make any payments before the pause ends?

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swb1003 t1_ja9gat7 wrote

God no, if they’re in deferment. Wait and see what happens first, save the cash now and then make payments once they start. Why spend money now if nobody’s asking for it, it’s not accruing interest, and there’s no penalty for not paying?

Edit to add that I am but a layperson with one student loan left in deferment and this is my approach. Ymmv

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GeorgeRetire t1_jaalx6b wrote

Why pay something today, when it costs you nothing to wait?

Just make sure you have the money when the time comes.

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passamaquedey OP t1_jaap7ne wrote

My line of thinking is since interest isn’t growing right now it’s best to pay it down as much as possible right now before payments restart so it’s less in the long run.

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GeorgeRetire t1_jad0oq4 wrote

Why not keep it in a high yield savings account, earn a little interest, then pay the debt down once actually required?

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passamaquedey OP t1_jadubg7 wrote

I think I might do that I’m going to look for some savings accounts with high aprs.

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