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Thinking about paying off the student loan

July 25th, 2009 at 10:16 am

I have about $8100 left to pay on a student loan. Between the vacation fund and the tiki fund (yes, that one...), I have enough to pay it off. Right now, the payment on that loan is about $300 a month. We are expecting another baby in November, which means another college fund.

We'd still have a decent-sized emergency fund. As long as hubby and I can stay at least partially employed, we will be in good shape.

The loan has really started bothering me recently. I paid too much for a virtually worthless degree. Journalism is no longer a profession. No one is hiring, the industry is in shambles, and the jobs I had had have never once paid as much as I made working as a Bourbon Street bartender before I got the degree. How sad is it that a bartender can make more than a reporter at a major daily newspaper??

So, I guess I am mad that I spent so much on a degree. and I'm ready to put it all behind me.

So, should I just go ahead and pay it off?
My savings accounts are paying about 1.3 percent, and I am paying 4 percent interest on the loan. We get virtually no tax deduction for it. I would automatically redirect the $300 I was spending back into savings, which would eventually replenish the money I am taking out.

Any thoughts?

12 Responses to “Thinking about paying off the student loan”

  1. creditcardfree Says:

    I would do it, if you have a decent emergency fund.

  2. Ima saver Says:

    I agree, pay it off!

  3. thriftorama Says:

    Yeah, I've been thinking about it all day and I just set up the transfers from savings to checking so I can pay it off. It's the only debt in our life and it's time. The money should be in my checking Tuesday, and when it arrives, I will set up my final payment to the U.S. Dept. of Education.

  4. whitestripe Says:

    do it do it do it!Smile if you have the money to, why not? plus i am sure not having the weight of it on your shoulders will make everything seem better.

    but please don't discount what you learnt through your degree. i enjoy reading your blog and your writing, i am sure you can put your skills to use another way even if it's not reporting.

  5. baselle Says:

    When I paid off my student loan, it inspired me to get rid of my credit card debt.
    I also wouldn't discount your degree. I had the discount stage like that myself when I bailed out on a scientific/ academic career, but I realized that while I didn't have an outlet (college profship) I kept the skills: learning, critical thinking, training in scientific method, a bs detector. Out of all of those, the bs detector was the most valuable. From your writing, I know you have a great bs detector. Treasure that.

  6. KellyB Says:

    Glad you've decided to pay it off. With Bean 2 coming, you'll be happy to have that debt behind you and free up the $300 monthly for other goals/expenses. Congrats!

  7. BuckhornGal Says:

    One idea would be to pay off half and see how you feel about it. Is it still weighing on you? Then pay the balance off.

  8. thriftorama Says:

    I think I am just going to do it. I have paid large chunks of it before, but it never seems to move the pay off date as close as I'd like it to be. Even if I paid half, I'd still be making payments for another year. I think I just want it gone.

  9. Broken Arrow Says:

    I think I may have an even more useless degree than you. Criminology. Big Grin And truth is, journalism isn't that bad. It's just that everything is moving to the digital realm, but a technological shift doesn't mean there journalism is obsolete. Unlike my degree. Big Grin

    Yeah, I'm tempted to say that you should go ahead and pay it off as well. I know that were I in your shoes (and I've been there before), I would have done so.

  10. thriftorama Says:

    Unfortunately the technological shift in journalism hasn't been accompanied by a sustainable financial model, which means here is still a demand for journalism, but no money to pay the journalists to do the work. Jobs have dried up and pay has gone down.

  11. baselle Says:

    Crime doesn't pay, eh BA Big Grin Duck!

  12. No Pain | No Gain Says:

    Very nice choice (regarding the SL, not regarding having another baby, but that's great too!)... Wink Congrats on Bean #2!!! Big Grin

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