Student Loans Go In Baby Step 2

George and Lorraine started out with $119,000 in debt and have paid off $19,000 already. Half of the remaining debt is from student loans. Should they place it in Baby Step 2 or Baby Step 6?

QUESTION: George and Lorraine in Richmond started out with $119,000 in debt and have paid off $19,000 already. Half of the remaining debt is from student loans. Should they place it in Baby Step 2 or Baby Step 6? Dave advises them to leave it in Baby Step 2.

ANSWER: The student loan stays in Baby Step 2 regardless of its size. It’s only the second mortgage that moves to Baby Step 6.