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🤔 Student Loans vs Investing

You have a bit of extra money each month. Should you throw it at your loans or invest it? Real math, real projections. Let's see which path builds more wealth.

Your Numbers

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Loan Payoff Scenarios

Minimum Payments Only
12.1 years
Interest paid: $15,547
With +$300/mo Extra
5.3 years
Interest paid: $6,493
Paying extra saves you $9,054 in interest and pays off 6.8 years earlier

Wealth Comparison

Scenario A: Pay extra on loans → invest everything after payoff
Scenario B: Pay minimum on loans → invest the extra monthly now

After 10 Years
A: Pay loans first, then invest$42,903
B: Invest now, pay minimums$51,925
🏆 Investing now wins by $9,023 after 10 years
After 20 Years
A: Pay loans first, then invest$198,725
B: Invest now, pay minimums$156,278
🏆 Paying loans first wins by $42,447 after 20 years
💡 Rule of thumb: If your loan rate > investment return rate (7%), pay loans first. If your loan rate < 7%, investing likely wins. Your loan rate is 6.5% vs 7% expected returns. Investing looks better long-term.

Sources: Federal Student Aid Interest Rates, IRS Topic 456 (Student Loan Interest), BLS Education & Employment. Last updated March 2026.