Should I pay off my student loan?

My bank is paying so little in interest. Should I pay off my student debt?

Asked by rsmith8881

1 Answer

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Answered by Arthur Wang
The answer is almost always no.

Historically, you can get approximately 8% return by investing in the equity market. However, you have to include the risk (volatility) that is inherent in investing in the equity market. But, when looking at it over a long time horizon, you will almost always be better off with a volatile investment yielding 8% per annum (over a 20-30 year period) than paying off a student loan that has a return comparable to the rate of inflation. | 12.22.10 @ 01:19
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$commenter.renderDisplayableName() — {comment} | 11.18.17 @ 13:47
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Arthur Wang

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