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Student Loans

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Student Loans

Sethi says there are two approaches to consider when making your payments. First, there's the technical approach. This works best if you have a very low interest rate on your loans. Because your rate is low, you can afford to pay only the minimum amount on your loans and put the rest of your money toward other, higher-yielding investments.

Then there's what he calls the emotional approach. This is best for those that absolutely hate being in debt. The goal is to pay it off as soon as possible by making more than the minimum payment each month. Once your loans are paid off, you can redirect that extra money to your investments.