I need to pay off student loans while I'm living at home. How much should I be paying off?
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How much of a weekly income of $400 be paid into student loans? I would like to know how much I should realistically expect to pay back per month and how much I should allow myself as disposable income. Assume that I have no bills at this time, and please include how much I should devote to savings aside of the amount that I should pay back on the loans.
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Answer:
There are a number of things to be considered. Because school loans are low-interest loans, there is less urgency about paying them off as there would be for consumer loans. However, if your goal is to become debt free, pay as much as you can each month. If you have no other loans and your parents are not asking you for room and board, it would be smart to pay 25% of your take home pay each month to reduce your loan.
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