Should I Pay Student Loans or Save Up for a House?

Should I Pay Student Loans or Save Up for a House?

Almost every student can relate to the fear of paying off student loans, how much this will cost each month, and how many years this process will take. No one looks forward to paying off student loans, but they are an inevitable part of life that can create conflicts on whether you should try to save up for a house or pay down your student loan. Down payments for a house or apartment alone can be expensive. However, there are various tips that can help you weigh your options. Feel free to contact a Tennessee bankruptcy lawyer if you find yourself struggling financially. 


The one thing about student loans that is vastly different from saving up for a down payment is that student loans will increase with interest the longer you wait to pay them off. Figuring out whether to pay off student loans first means deciding whether to start saving up for a down payment and realizing you will have to pay higher student loan payments later or paying off student loans now at the possible cost of taking longer to save up for a down payment.

The good news is that it is not impossible to attempt both options at the same time. There are several student loan payment tips that might save you money in the long-run. One of the first things you should do is check out whether you are eligible for student loan forgiveness. While this may sound unlikely for you at first, you never know and it never hurts to check. Visit the student loan website to find out more.

You can also make extra payments whenever you want to. Do not worry, this will not set up automatic monthly payments. There is usually a one-time payment option online, but if you cannot find it, contact your loan service provider. You may also consider what you could do with your stimulus check


Saving up for a down payment can also be quite daunting at first. Many apartments alone can require a down payment of at least a thousand dollars. Of course, the size of the down payment depends on the size of the home and the city you live in. Research online what down payments go for in the city you want to live in.

Common tips for saving up for down payments are obtaining a second part-time job, asking for a raise, or looking for a higher paying job in general. These may not all be viable options for you though. You can also seek no-interest loans, set up your tax refund to deposit into savings for the down payment, or try out crowdfunding services online like GoFundMe. 


If you find yourself still struggling to weigh your financial options, then consider reaching out to our legal team in Tennessee. Our bankruptcy lawyers are dedicated to helping people navigate through financial and legal challenges. We have worked with clients from Chattanooga, Tennessee, and North Georgia.

Contact a Bankruptcy attorney in Tennessee today at (423) 690-7712 or leave a note on our contact page. Our offices are located in Chattanooga and Tullahoma. 

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