Should You Be Doing This With Your Money | Bridger Pennington

Should you pay off your student loans right now or invest? Now, my opinion is it depends on the cost of capital for that student loan, how much like the percentage is. So, if your student loans are at a 2% or 3% rate and right now the risk-free rate for like bonds is 4.5%, 5%, I would probably not pay off that loan. So, now do whatever you want but I probably wouldn't. However, if you've got credit card bills that are 20% to 30% a year, I would definitely pay that off. It's like almost making a 20% investment next year. That's how it feels if you pay off that debt versus if you have a 2.5% debt, that becomes an asset in my opinion. Debt at 20 to 30% a year is a liability in my opinion. So that's kind of how I would approach student loans or student debt if you have it.