Should you crush your student loans or pile into the market? The answer depends almost entirely on one number: your interest rate.
Most people learn the formula once in school and never touch it again — until life forces them to. Should you crush your student loans or pile into the market? The answer depends almost entirely on one number: your interest rate.
Pay aggressively. Long-run stock returns average ~7% after inflation; debt above that is a guaranteed loss.
Split — minimums plus 1–2 years of investing. Hedge against either decision being wrong.
Minimums only. Invest the rest. The arbitrage favours the market over 20+ years.
What about loan forgiveness? If you are 5 years into PSLF, do not refinance — you lose forgiveness eligibility.
Is refinancing safe? Only if you are sure you will not need federal protections (IDR, forbearance, forgiveness).
The math is the easy part. Acting on what it tells you is where the real win lives.