San Antonio, TX · Member since 2016 · 118 posts · 35 votes
I have quite a huge student loan debt, which is the only type of debt I have. I would like to get into REI immediately but like to know the smartest move to make.
I have quite a huge student loan debt, which is the only type of debt I have. I would like to get into REI immediately but like to know the smartest move to make.
This would be easier to answer if we know how much student debt you have and how much you earn? There is a huge difference between you owing $18,000 and $300,000.
If you owe $18,000 and make $100,000/yr, then I suggest you pay it off as soon as possible. Postpone investing until after you are finished. If you owe $300,000 and make $20,000 then I suggest you put off investing or paying the loan down until after you can greatly increase your income.
I am in a similar boat and have decided to do both.
If your debt is 100% or more of your annual income or you work in a field with public service loan forgiveness I recommend you check out Student Loan Planner service. They are fiduciary financial advisors that run your numbers and your goals and show you all the possible paths. For me there were some clearly superior options and the conversation gave me the peace of mind to not fully pursue my debt at present. Also they may alert you to loopholes based on your profession and state.
If you can qualify right now for a mortgage and have a down payment, you can buy something to house hack. Make sure the mortgage and expenses are similar to your current housing situation so you are paying around the same amount. Then get a roommate or two or rent out the other unit(s) depending on the property type you choose. You can then put all of that rental income towards paying your student loan down starting with the highest interest debt.
You'll essentially have the same budget as you currently have, but be receiving rental income and gaining equity. Of course this route is dependent on property values in your area.