Clear The Student Loans

Caleb just graduated from college and has saved $20,000. He has student loans totaling about $20,000. Should he pay off the loans or let the G.I. Bill take care of it?

QUESTION: Caleb in Texas just graduated from college and moved in with his parents due to some outstanding credit card debt. He paid off his credit cards and has saved $20,000. He has student loans totaling about $20,000. He also has the G.I. Bill, which will repay those. Should he pay off the loans or let the G.I. Bill take care of it? Dave recommends just paying it off.

ANSWER: I would just pay it as fast as you can pay it—like in a year. I would definitely pay it in less than a year so you can get out on your own, boss. You have a $20,000 student loan bill you need to clear. I wouldn’t wait 33 years to pay it off. You got the G.I. Bill, you went an extra $20,000 in debt, you’re making $70,000, and I would use that to clear the deal.

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