Pay Off Student Loans or Save: Which Comes First?

July 11, 2013
CNN Money 
student loan news

Young graduates who are torn between saving for retirement and paying off student loans should make retirement savings a priority, says Anna Behnam, an Ameriprise financial adviser based in Rockville, Md. Unless there is high-interest debt involved, consumers should try to put away at least 10 percent of their annual income each year, using workplace savings plans or a Roth IRA. Then, consumers should determine a monthly student loan payment schedule that works with their budgets and savings goals. Before saving for a large purchase like a house, graduates should start building up an emergency cash reserve for emergencies: at least three months for employees with steady paychecks and six months for those who are self-employed. Research on homes in the desired location can help develop a realistic savings goal to afford a 20-percent down payment and closing costs out of pocket.
Web Link







Abstract News © Copyright 2008-2013 INFORMATION, INC.
Powered by Information, Inc.

Stay Updated

Join the fight against predatory lending. Enter your e-mail to sign up for breaking news, action alerts, and CRL's original research.

   Please leave this field empty
  

Help Us End Predatory Lending

Predatory lending destroys family wealth, and preys on our most vulnerable communities. You can help us end abusive lending practices by donating to CRL, or by sharing our work with others.



`