My student loans had a really low interest rate– even lower than a super-low mortgage rate. We don’t have a house yet, but eventually we might get one, so it makes sense to keep lower interest rate debt. There’s even a reasonable chance that the market would out-perform the risk-adjusted return to paying back the loans if the interest rate is low enough (#2 wrote that sentence).
I was working on building up an emergency fund in my steady t-t job (after recovering from the debt of moving here and having to buy a car, which I had already paid off in under 18 months). BUT, I got annoyed and wanted to get rid of the loans, so I did.
I was lucky to have only federally subsidized loans. I had no problem with how things were going at http://www.direct.ed.gov/ — I was getting the interest-rate discount for having automatic payments, the payments were an amount that I could handle, and it was easy to change anything through their website or make a one-time extra payment. I did this sometimes, because I wanted to pay off my student loans before tenure (I am goal-oriented). But mostly I let it chug along on its own.
But my student loans got sold to this stupid mohela place and their website is stupid. If you will recall, they made it a huge PITA to do anything, especially making one-time pre-payments.
So the short story is, mohela pissed me off so much that I threw savings at them to make them go away.
Sometimes throwing money at an annoyance is well worth the expense. Like getting a cleaning person, only in this case with paying off low-interest debt.
#2 says: Can we get some kudos for #1 paying off her loans?
If you had student loans, did you pay them off early or on time (or are they still going)? Why?