Should I pay off my student loans or invest?

[Hodan from HR]

Hi sspot,
I Miss you guys
To the new members I have not interacted with yet, welcome!

Title is self explanatory I guess.
So yeah, I am in my final year and I've saved up good money for the first time. Kinda 50/50 with investing or paying off my debt..


Need advice please

 

[Hargeysa]

Hi Hodan, it depends on where you live.

You based in the UK?

 

[Hodan from HR]

Hi Hodan, it depends on where you live.

You based in the UK?

I'm based in Canada

 

[Ras]

Pay it off only for the government to pardon all student debt a few months later

 

[Hargeysa]

I'm based in Canada

Ok, I would've been more helpful if you went to a British university, but I think I can pass on good advice.

Basically, this boils down to which is bigger : the interest rate of your student loans Vs expected return from investments

For example, if the interest rate on your student loans are ~5% annually, and the expected return is 7%, then you'd go for investment.

If the interest rate of your student loan is larger, pay those off first.

 

[Man with a garuun]

Pay off the debt first

 

[Hodan from HR]

Pay it off only for the government to pardon all student debt a few months later

Lol, that's what I am afraid of

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[Hodan from HR]

Ok, I would've been more helpful if you went to a British university, but I think I can pass on good advice.

Basically, this boils down to which is bigger : the interest rate of your student loans Vs expected return from investments

For example, if the interest rate on your student loans are ~5% annually, and the expected return is 7%, then you'd go for investment.

If the interest rate of your student loan is larger, pay those off first.

My only hesitation on investing is, it could go both ways. I could make profit or incur loss while paying my stu loans guarantees I will be debt free.

 

[Karaboga]

I would pay off the student debt and try to get it reduced.

Ok, I would've been more helpful if you went to a British university, but I think I can pass on good advice.

Basically, this boils down to which is bigger : the interest rate of your student loans Vs expected return from investments

For example, if the interest rate on your student loans are ~5% annually, and the expected return is 7%, then you'd go for investment.

If the interest rate of your student loan is larger, pay those off first.

I would add that if you do take the investment option. It's better to pay off the debt with the return on equity you make.

 

[Hargeysa]

My only hesitation on investing is, it could go both ways. I could make profit or incur loss while paying my stu loans guarantees I will be debt free.

In that case, pay off the debt.

It's a sensible decision.

 

[Abdisamad]

Buy a house or an apartment for the money, then use the money you'll have used for down payment of your mortgage as a down payment to your student debt..

 

[Abdisamad]

Btw I've missed you too, my first sspot wify

 

[En_Sabah Nur]

Historically stocks (index) would give you better returns than the interest charged on the loan. That being said interest rates are going up and markets have been volatile lately. In a low interest environment, investments are better, but rising interest rates, I would pay off the loan first.

 

[Yoobudy]

I heard Interest has been suspended for all Canadian students until next year, they might even extend that with where the economy is headed. Depending on how much you have saved up investing it wouldn't be a bad idea....

 

[Unbothered]

Can you split it
Pay half of your student loan to cut down the interest rate and invest the rest

 

[Champion]

"Should I pay off my debt, or potentially lose money on investments?" this question is simpler to answer than you think.

 

[Deekhow]

@Hodan from HR
I think it would be wise to invest in easily liquidity investment. Since the is 0% interest in the federal portion of the loan( pay off the provincial part if you can).
When investing diversify your portfolio.
I have a question for you:
Since you are able to pay off the loan immediately(assuming you just finished schooling) will it no trigger audit on you to see if you qualified for the loan in the first place?

 

[Hodan from HR]

Btw I've missed you too, my first sspot wify

Aryaahe, suuqa hanaga xirin
I ain't anybody's sspot wifey

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[Hodan from HR]

@Hodan from HR
I think it would be wise to invest in easily liquidity investment. Since the is 0% interest in the federal portion of the loan( pay off the provincial part if you can).
When investing diversify your portfolio.
I have a question for you:
Since you are able to pay off the loan immediately(assuming you just finished schooling) will it no trigger audit on you to see if you qualified for the loan in the first place?

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Maybe I should invest.
If not for the higher profit it could generate, it seems the path of least resistance right now..

 

[Deekhow]

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Maybe I should invest.
If not for the higher profit it could generate, it seems the path of least resistance right now..

If you can prove you didn't have that money when you got the loan then you are good. I'm from SK so I have little knowledge in OSAP(9/10 ur from there).