deferment student loans / investing

[phimag512]

Hi,

I recently went back to school this year for my MBA. I already had been paying student loans prior, but now that I'm back in school (for at least 4 years) it put those loans on deferment. My question is, should I still keep making monthly payments or just use that extra money ($264/mo) to put into my Roth or 401k.

I want to also add that I'm receiving tuition reimbursement, so I won't be gaining anymore loans on top of what I have.

Thanks,
Phil

[EscapedApe]

It depends on the interest rate of your student loans.

There's a guide here on the forums for investment priorities, and high-interest student loans pretty high up on the list.

IIRC, if the interest rate on your loans is higher than ~5%, you'll want to focus on amortizing those first before you look at retirement accounts.

[RWD]

There's a guide here on the forums for investment priorities

Link: https://forum.mrmoneymustache.com/investor-alley/investment-order/msg1333153/#msg1333153

[phimag512]

Ok, thanks. I wasn't sure if the same rules apply for student loans in deferment. The rate is 2.75%, so I'll focus the funds into investments.

Thanks!