Yes, it does make sense to pay it off. Say you're getting 5% in a High Yield Savings Account. You're losing enough in taxes to pretty much equal that 3%. If that's your only debt, hunker down and pay it off.
The student loan is $72k @ 3% interest. Doesn't make sense to pay it off with such low interest.
Say you move to a cheaper area with lower taxes. Let's just pick Texas. Your salary, depending on your job type could be drastically cut. I live in Massachusetts and the company had a Texas design center. They wanted to find another person like me down in Texas because they knew they could pay them less. The offering salary was 60% of what I was paid. And even then, I took a pay cut to be in that job. So where do you want to move to? What are the taxes there? What might the salary be? And if you think you'll get what you make in NYC, go ahead and interview. I sort of doubt you will make the same.
Statistics: Posted by Jack FFR1846 — Fri Jul 05, 2024 9:21 am — Replies 60 — Views 3714