Personal Finance

Student Loans

  • Last Updated:
  • Mar 14th, 2011 7:17 pm
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Sr. Member
Apr 22, 2009
653 posts
53 upvotes
Manitoulin

Student Loans

HI there

Is it better to pay off students loans as fast as possible or just pay minimum payment because of the ability to claim the interest come tax time. I would think financially it would make sense to pay it off as soon as possible right, I wouldn't think that the interest tax break would make much of a different. The loan amount is about 10k and monthly payments are 125ish lasting about 9.5 years at minimum payments.
2 replies
Deal Addict
Jan 28, 2009
2013 posts
613 upvotes
Calgary
It would depend on a variety of factors: your best investment alternative with that money and your risk tolerance being the most important.


At the end of the day, it's hard to beat a guaranteed, risk-free 4-5% return on your money (not sure what your interest rate your loans are at, but mine are 4-5.5%).
Deal Guru
May 29, 2006
10930 posts
3663 upvotes
some provinces such as NFLD have interest free student loans, i owe them around 9000 but i only pay 120 a month since its interest free.

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