school debt

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    claude moore


    In your intro, you mentioned that you started out with a 100K in law school debt

    “I became a Fed a little over 15 years ago with no savings and almost $100,000 in law school debt. With no income other than my GS salary, my net worth is now well over a million dollars – mostly because I have made good decisions with my TSP allocation.”

    How long did it take you to pay down your educational debt, are there any strategies board members would suggest vis a vis paying down educational debt vs. tsp savings, etc.?


    Tony Jackson

    Not sure about TS Paul but it’s going to take me 10 years and a little under 30% of the actual amount that I owe. As a federal employee you are most likely eligible for the Public Service Loan Forgiveness program. Under this program you pay back based on your income and once you have made 120 on time monthly payments the remainder will be forgiven. I encourage you to look into this at the site linked.

    TS Paul

    It probably took me about 15 years to completely pay them off, but that was because I put my loans into the extended payment option. I did that not because I was having any trouble repaying them, but because my agency’s Student Loan Repayment Program was paying for about half of them, but only over the course of many years.

    Typically I believe the math weighs in favor of maxing out your retirement accounts before you consider paying ahead on student loans. Between the student loan interest tax deduction for lower income earners and the potential for various programs to either forgive or pay off some of the loans, I think it is usually pretty rare to be in a position where throwing a few thousand dollars at your loan balance makes more sense than maxing out your Thrift Savings Plan or funding an IRA.

    The TSP Allocation Guide


    I’m just reading this thread and wanting to smash my face in my computer screen. My grandmother had given me close to 10K to pay down my student loans so I did not thinking of any of this. I could’ve qualified for the Public Service Loan Forgiveness program in 3 years had I not quit making my payments since it telling me I was paid up until forevr basically. I could’ve just invested grandmas 10K as well.

    Live and learn.

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