Hello guys, so I'm not here with some grand thesis on the next stock, but to hopefully offer a word of advice. I'm a graduating college senior, having worked in-between classes to tuck away some cash in my investment portfolio. Like many of you, I am concerned about the market continuing to deteriorate as I enter the work force and try to save more money. However, I believe this correction offers a chance to reflect on how our many can best be spent once we graduate: paying down student loan debt.
As of September 2022, there is $1.75 trillion dollars that needs to be paid back to federal and private lenders, with an average of $28,950 per borrower. As Biden's student loan forgiveness plan is tied up in the 8th circuit, the moratorium on student loan interest ending Jan 2023, and the fed raising interest rates again, it is more important than ever to consider paying down your student loans right now.
For me personally, my loan interest rates are around 5-6% and with the stock market declining 21% since last November, why not get a risk-free “rate of return” of 5-6% by freeing up future capital and paying down debts now?
Just something I've been thinking about. Let me know your thoughts and opinions.
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