Investment vs Student loan help

[amazingcrwns]

Hello MMM Community,

I'm here seeking advice with a decision to pay off a student loan or start an investment. I'm 35 and recently changed jobs, with that change came a substantial pay raise and now I'm trying to figure out the best way to get the new income to work for me. 

I have 2 outstanding loans, first is my student loan, which is roughly $8000 at 2.4% interest.

The second is a loan against my 401k, also for roughly $8000 at 3.5% interest. Since it's a loan against my own retirement, the interest is just me paying myself.

I've socked 12k into a savings account and I'm trying to decide if I should invest the money and continue to pay off the loans over time while the investment grows, or if I should wipe out the student loan before I do anything else.

Thanks for the advice.
-Amazingcrwns

[MDM]

It's possible that Investment Order will answer your question.  Or it may raise more questions. ;)

Take a look and let us know....

[amazingcrwns]

Perfect thank you, that confirms what I thought.

The interest rate on the student loan is low enough that the expected return from investing the money more than offsets it.  I wanted to ask in case there was something else I hadn't considered.