How Roth IRA Conversions, 401(k) Withdrawals and Other Retirement Moves Affect Student Loan Payments
Retirement plan contributions, transfers, and withdrawals can raise or lower your monthly student loan payments on IBR, PAYE, and REPAYE.
Retirement plan contributions, transfers, and withdrawals can raise or lower your monthly student loan payments on IBR, PAYE, and REPAYE.
Putting money in a retirement account can mean lower student loan payments and more student loan forgiveness.
If you are a current college student, putting some money in a Roth IRA has some major advantages.
Emptying retirement accounts to pay off student loans usually means taxes and penalties, but these risks can be avoided in some cases.
Some advanced student loan repayment strategies allow borrowers to eliminate student debt and contribute to retirement accounts like a 401(k) or IRA.
Having student loans doesn’t mean you should ignore your retirement accounts. In some cases, it is better to save for retirement than it is to pay down debt.
Deciding between attacking student loans and investing in a Roth IRA usually comes down to interest rates and how much risk you can tolerate.
Student loan prepayment comes with many advantages, but there are a few downsides that borrowers should understand.
Student loans make early retirement an even bigger challenge, but it is still possible for borrowers to aggressively save for retirement.