For starters I am 29 years old, I gross just over 50k, which will likely increase to 70k within the next 3-5 years. I have 7k in private loan debt at 4.5% interest rate and 15k in federal loan debt at 4.2% which is in forbearance while I finish my associates (job is covering this degree). My biggest issue is that I’m putting $300 towards my private loan a month and can’t seem build a savings to hopefully buy a house in the next 3-5 years.
My retirement is at 20k, so I wasn’t sure if it was worth it to pay off my private loans as I am currently doing and use my retirement to pay off my federal loans and then up my 401 contributions to try and make up for lost ground? I’ve been at a loss for what to do and am feeling bogged down by the thought a $300 monthly payment for the next 6 or so years.
Any input would be appreciated!
original posted by chilihands to r/personalfinance on Thu, 29 Feb 2024 01:00:39 GMT.