Should I prioritize loan or 401k?
I have 19k education loan with effective 5.15% interest. If I pay back $200/month I’ll be done in 10 years having paid about 5k in interest
If I’m more aggressive and pay $600 a month I’ll be done in 3 years having paid about $1,500 in interest but I won’t be able to max out my 401k contributions. My employer doesn’t match at all.
Other factors: my income and savings are such that I’m not worried about emergency fund or other debt
I should probably continue what I’ve been doing to pay off my other loans which is pay the minimum and every once in a while when I have a windfall or extra in savings put it to the loan but psychologically lately I’ve just wanted to be done (I’m almost 40 and it’s been over 10 years) but I think the 401k is the better priority especially with the MAGI tax savings