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liotta
Guest
0.10 Dollars($)
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 Posted: Tue Mar 28, 2006 10:36 am Post subject: should I pay it off or should I save |
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I am a college student doing my graduation. Now, will it be better to start making repayments for the student loans while I am a student or shall I save money to build future assets like home which will require a down payment initially?
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 Samantha
Community Mentor
Joined: 16 Sep 2005
Posts: 1535
Location: MASSACHUSETTS
136.50 Dollars($)
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| Posted: Tue Mar 28, 2006 10:41 am Post subject: |
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Hi Liotta,
It's always better to pay off your loans and never to be default on it. Regular payments will help you improve your credit score.
This is an early stage and there is lot of time left for you to build up your assets. With regular payments, ultimately you are going to help yourself in building assets.
Since, with a good credit score you will be able to qualify for a variety of loans with best terms and conditions.
God bless you.
For MortgageFit,
Samantha
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douglas
Guest
0.10 Dollars($)
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| Posted: Tue Mar 28, 2006 10:52 am Post subject: |
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Hi Liotta,
You can still save after making the repayments. Repayments should be given first preference always.
But, you can make a plan and save a small amount one a regular basis. Try for some small investments like in mutual funds which will help you to save along with your repayments. |
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Bill
Joined: 21 Mar 2006
Posts: 83
Location: Illinois
3.65 Dollars($)
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| Posted: Tue Mar 28, 2006 1:12 pm Post subject: |
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Liotta,
If I understand your question correctly, you are asking if you should start making student loan payments now or continue deferring your student loan payments until after you have graduated while saving the money you would use for these payments for a down payment on a house … I will gear my answer toward this understanding of your question.
Buying a home is always easiest with good credit & some money to work with toward down payment & closing costs.
A great way to establish or improve upon existing credit is to make on-time student loan payments. Generally speaking, student loan payments can be structured to be very low compared with the amount of money borrowed. I have seen many combined student loan monthly payments in the $35 to $75 range … making student loan re-payment an inexpensive way to establish a solid credit rating.
So I would suggest that you do both if possible … start making payments on your student loans which will benefit your credit and save any additional monies toward the future purchase transaction at the very same time.
Best of Luck!
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Bill Clanton is a Mortgage Specialist and Manager of State Street Mortgage of Illinois. StateStreetMortgage.Net |
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