Do Student Loans Go In Baby Step 6?
Abigail has $85,000 in student loan debt. She wants to know how she and her husband should handle this debt.
QUESTION: Abigail has $85,000 in student loan debt. She wants to know how she and her husband should handle this debt. Dave explains why it’s best to pay the debt off as quickly as possible instead of treating it like a mortgage.
ANSWER: Your student loans should not go in Baby Step 6. They should go in Baby Step 2. As you make more, you’ll be able to pay this off faster and faster and faster. You should be able to double your income in a year as you go to work and he starts making more. Everything you make and all of his raises could go toward the student loans.
You need to take care of the student loans before you do anything because if you don’t, you’re going to look up 25 years from now and those student loans will still be lying around. You’ve got to make them a big deal and knock them out.