Saturday, November 12, 2011

Should I pay the interest on my student loans?

I just graduated from a university and am about to start working. I, like a lot of students, have a significant amount of educational debt. My mom thinks I should pay the interest that has aculated, but I want to save it for a down payment on a house. I had one financial advisor tell me that educational loans have the lowest interest rate, so I should pay them off at the slowest rate possible. Is this true? I have about $95,000 in debt, with about half subsidized and half unsubsidized. Should I pay the interest to avoid capitalization? Thanks!

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