inheritence and loans

[1986montecarlols]

Hello all, as a lot of you probably know, i lost my parents in the last year and well to be quite blunt I will be recieving around 25K which well for being 25 years old is a decent ammount of money. Heres the thing, I am less then a year from graduating with a shotty BA in history. I want to teach overseas if that is Japan ever clears up.

I owe 35K in school loans half and half are subbed unsubbed. What would you guys do? Pay off the majority of my school loans that i owe or invest the money into bank Cds, etc? I honestly have no clue what to do. In once sense I get my loan down to about 9K or I invest the money to have it around in case of an emergency. Id like to know what you guys think.

nate

 

[kornball426]

I hate being in debt so paying off loans sounds like a good idea to me... But that's just me, if you pay off that big of a chunk of your loans in one shot think of all the interest you'll save yourself from having to pay as opposed to making small payments.

 

[NY87SS]

having emergency money to me is a must.
Also right now there is no simple investment that will make interest thats worth a dam.
I don't know what you are paying for interest on the loans, but CD's etc right now aren't paying more than a few percent and thats for longer termed Cd's.
So what you would be doing if you bought a CD was make 2 % or maybe a tad more interest and your probably paying 4+ in interest on the loan, so your further ahead if you pay off the loan.

 

[NY87SS]

Going back and re reading this.
IMO, put 3-6 months of your bills into the bank for safety in case you need emergency money, take the rest and pay the loans that have interest over 3% which is the ones a CD isn't worth getting.

 

[custom442]

I agree with NY87ss, put about 6 months of pay in the bank, add all your bills and spendings up and save that.

Put everything else on your loan. Everything. Paying back 10-15 grand is soooo much easier than paying back 20-25 grand.