Loan principal ~$13K
Interest 3.5%
Monthly Payment $136
Payoff date in mid 2025
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Age 40, single parent of 2
Income $90K plus ~$22K in child support payments
Savings rate 45% of my salary, 36% of total income including support payments
Available cash ~$40K (includes 8-12 months emergency fund plus savings for planned/expected expenses)
Tax deferred investments ~$100K
No other assets or debts. Total NW ~128K
Expect to get about $67K rollover IRA sometime later this year after QDRO goes through.
The loan has been bothering me for a while now, but my gut feeling is to leave the loan alone. The payment is small enough that it will not radically increase my savings. The interest rate is low enough that $100 of the $136 payment is going to principal. But in 2025 both of my kids will be finishing or out of college. Feels weird to still be paying my student loans when they will be paying off theirs.