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