I have a $5,000 loan with an 8.25% interest rate. Should I pay it off right away or wait until my next paycheck? The answer is yes. You can always ask for a postponement if you need it, and there are ways to get your loan paid off more quickly.

There’s no question that college is expensive. Whether you went to private school, state school, or even if you went to a community college, you’ll likely have tens of thousands of dollars in student loan debt.

There are a lot of people who have never paid back their loans. Some even make excuses why they should get out of paying them back. And there are also plenty of people who don’t feel any obligation to pay them back because they think they’ll always have a job.

So, the question is: should you pay back your student loans? The answer is not as simple as you may think.

This is a question that thousands have asked me of people, and now you have an opportunity to get the answer that I would give to them. So, in the spirit of being completely transparent, I will tell you my honest answer — the answer that I’ve given thousands of times. And then I’ll share the secret to getting a fantastic outcome for yourself without spending years in debt.


What is debt consolidation?

Debt consolidation is a technique for dealing with all of your debts under one loan.

It’s a popular option for students who have a lot of debt and can’t find a job that pays enough to cover their bills.

Here’s how it works: You make a single payment to your bank every month instead of multiple payments. This reduces your interest rate, making it easier to handle. It also makes it more likely that you’ll be able to pay off your debt quickly.

The problem with this method is that you’ll still owe money to the original lenders, and you won’t get a refund. You’ll just be using the new loan to pay off your old debts.

Some experts suggest that it’s a good idea to use debt consolidation to free up cash so you can save and invest.

While it’s true that you can use the money you’ve saved to invest, you’re better off using it to pay down your debts.

There’s a reason why banks offer you a 0% APR for a year. They want you to spend that money on your credit cards, not on paying down your debts.

It’s best to use debt consolidation to pay off your debts.

How much should I pay back on my student loans?

College is expensive. For example, it costs over $50,000 a year to attend an Ivy League school. Add in the tuition, books, room and board, and food, and you have a pretty hefty tab to pay off.

This is why student loan debt is such an issue. After graduation, many graduates have huge student loan debt that will remain with them for years.

According to a report from Student Loan Hero, the average student loan debt for graduating students is $30,500, with the average graduate paying an average of $5,700 a month in interest. That is nearly $1,400 a month in interest on just the average $30,500 in debt.

As you can imagine, paying off this debt is no easy task. There are many student loan forgiveness programs, but they only work if you’re in dire financial straits. If you’re lucky enough to be making a six-figure income, then getting any of these programs is slim.

If you are looking for a more realistic approach, here are a few tips to help you get out of debt faster.

Should I take out a loan or save for my future?

I’ve heard all of these arguments before:

“If I don’t pay off my student loans, I’ll never be able to buy a house.”

“I don’t want to live paycheck to paycheck.”

“I don’t want to have to work for 40 years and save until I retire.”

“I’d rather go to grad school and pay off my loans than take a job I don’t enjoy.”

“If I don’t pay back my loans, I’ll just end up paying interest forever.”

“It’s best to start saving when you’re young to get ahead.”

“I’m going to be poor if I don’t take out a loan.”

And the list goes on.

So, should you take out a loan or save for your future?

Let’s look at some of the pros and cons of each option.

#1. Paying back your student loans


You can use your income to pay back your student loans.


You’ll have to pay interest, and your loan payments can become quite large.

#2. Saving for your future


You’ll get more money and a giant cushion to spend on things you want.


You’ll have to save a lot of money to build a nest egg.

#3. Taking out a loan


You’ll get to spend that money on things you want.


You’ll have to pay interest, and you’ll likely have to pay it off over a more extended period than you would have if you paid back your loans.

 Student loan repayment options

I’m not an expert in student loan law, but I did research into the issue before deciding how I wanted to handle my situation.

So, here are my thoughts on whether you should pay back your student loans or not.

If you’ve only got a handful of thousands of dollars in debt, then you might be able to afford to pay back your student loans. You’d have a very low monthly repayment and a much lower interest rate than you would pay if you let the debt build up.

But, the longer you wait to pay back your loans, the worse your credit score will be. Your credit score will go down by nearly 300 points in seven years, so it’s better to pay off your loans sooner than later.

There are also other issues. The federal government can garnish up to 25% of your paycheck if you make $150,000 or more per year.

And you can’t even file for bankruptcy if you’ve got $10,000 or more in outstanding student loan debt.

Frequently asked questions About Student Loans.

Q: If I’m in debt and am working, how can I afford to pay back my student loans?

A: In the first year after graduation, finding a job cannot be easy. You have to start saving and investing now.

Q: How can I pay off my student loans if I don’t make enough money?

A: One way would be to take out a home equity loan and pay off the student loans.

Q: Why should I pay off my student loans?

A: When you’re older, you may have more interest in going back to school. Also, if you are a homeowner or a home-elect, you’ll probably want to own your home free and clear.

Q: Should I pay off my student loans?

A: This depends on a lot of things. If you are in debt, talk to a professional.

 Top Myths About Student Loans

1. You should pay back your student loans as soon as possible

2. You should pay back your student loans when you are employed and when you have a stable job

3. You should pay back your student loans right away

4. If you are behind on your student loans, you will never be able to pay them back


I’m sure you’re asking yourself this question. And if you have student loan debt, you might also be wondering how you should pay back your loans.

There is a correct answer to that question, but it varies from person to person.

There are two main types of student loans: subsidized and unsubsidized.

The first type is called subsidized loans. The government provides this type of loan, and you will only pay interest until you graduate. After graduation, you will be expected to pay back the principal and the goods.

The second type of student loan is called unsubsidized. These loans are available through private lenders. You pay interest throughout your repayment.

The good news is that the government doesn’t collect on these loans. The bad news is that there is a high chance you won’t be able to discharge them into bankruptcy.