pay off my student loans

Time to mark this as done. I finished my last payment way back in January! Glad to be, for the moment, debt free (until time comes to buy a house, anyway).

So, I got a nice tax refund this year. I’m thinking about paying it all down on my student loan, or perhaps my car loan. Of course, I also kind of need a new bed as I’ve been sleeping on an uncomfortable futon for the last year and a half. I also kind of want to treat myself to something, maybe an Xbox 360 or some musical gear.

I really want to be responsible about this. I can forego the musical instruments and video games, even though I’d like them, I don’t need them. A new bed is becoming more and more necessary, though. But the debt is hanging over my head as well. I’m torn.

Like I said before, I’ve got enough saved (around $7K) to pay off my smaller bank loan ($5.5K), but now I’m debating whether I should do that OR use the cash to buy myself a second-hand car. A new car just isn’t feasible in the budget at the moment. I do want to get that loan wiped out, but it would also be nice to have a car for the summer.

Maybe I can get another interest relief period… I think I might be over the income bracket for that though.

Far too much debt. I have two student loans – a smaller one from CIBC (about $5600), and a larger federal loan (around $36000). I squandered my 6-month non-payment period, and I’ve had interest relief for 6 months. I’ve paid off mostly interest, but some principle… maybe a grand and a half.

Fortunately, though, since taking advantage of my interest relief, I’ve saved up almost enough money to wipe out my smaller CIBC loan. One more paycheck and I’ll be there. Since I’m on the longest payment plan available (14.5 years!), paying it all off now will save me about $4000 in the long run. I’m thinking long term. Then I’ll only have one loan to worry about.