Trying to make a dent on a BIG loan...

Posted by andres.valenzuela on Monday June 4, 2007

"You should check with your lender to make sure your extra [student loan] payments are being applied to paying down the principal," according to The Los Angeles Times. "Otherwise, it's possible your extra money is just being used to prepay your future monthly obligations and is not reducing your principal balance at all. But you may not need to be in any special hurry to get this loan paid off. You probably have better things to do with your money than pay off low-rate, tax-deductible student loan debt. In most cases, it's more important to save adequately for your retirement, have a decent emergency fund and get started on a down payment for a home."

Read the full Article here.
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