I receive emails from the loan service I used to get my student loans. They state that although I do not have to pay anything now, my loans are generating interest and if I start paying them now, I would save money. Is it a good idea to start paying them now, even though I have a very small income?

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Posted by Jack Poyle (MONEY FORUMS: 4, Answers: 0)
Asked on April 26, 2016 8:03 pm
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Yo Jack,

Okay, so you do have some money which could go towards student loans. Otherwise you wouldn’t be asking this question. So my question for you is… what would you use that money for that would benefit you more than paying down your loans? A new business venture? Mutual funds? If you can earn more money elsewhere than you could save by paying down your loans, go for it. Lots of rich people use leverage to make more money. BUT if you’re peeing your money down the drain on frivolous consumer crap, you’re better off paying down your loans.

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Posted by Will Lipovsky (MONEY FORUMS: 0, Answers: 37)
Answered: April 27, 2016 4:38 pm
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If you pay interest, your balance will not grow exponentially.

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Posted by Beth Tallman (MONEY FORUMS: 1, Answers: 61)
Answered: April 26, 2016 9:44 pm
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