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Updated almost 12 years ago,
Use savings to pay off student loans or invest in RE?
Hi team! I'd like to hear some of your opinions on a current situation I'm in. I'm recently engaged and am now focusing on both of our finances. She has a massive $100k+ student loan @ 7% interest which didn't lead to a job. She's now doing odd jobs to pay the bills, and is frequently being hounded by Sallie Mae. I'm contemplating paying off a some of this loan just so we don't get eaten alive by it, but I feel like my savings might be better spent investing in real estate. I'm new, so it'd have to be based on projections.
I think the decision will depend on if my projected return will be greater than 7%. If 100K can be spent to achieve a greater than 7% return, I think it would make more sense to invest the money and just keep the student loan in place for the life of the 30 years. What do you all think?