Thank you to everyone who commented on this blog, on my Facebook page, who sent me an e-mail, text message, or BBM regarding the big decision that needs to be made in my student loan repayment plan. The aggregated feedback from everyone seems to be that I need to cash out of my investment portfolio and use the proceeds of the cash you to retire my New Jersey Higher Education Student Assistance Authority (NJHESAA) student loan.
Not only has NJHESAA been troublesome to deal with (including sending their friends and allies onto this blog to consistently attack my previous entries regarding their horrible customer service), but the interest rate that they charge me is damn near criminal. When you combine the fact that this private student loan company has been very tough to deal with and the fact that they have been charging me an arm and a leg in interest, this question becomes almost a no-brainer.
Of course, a thorough review of the pros and cons of this plan also requires that I project out the possible return on my existing investment portfolio. Trust me when I say that I’ve done that time and time again and while I like the fact that I’m in the stock market, I think the bulk of my “big” returns have already been achieved. Plus, there’s nothing stopping me from getting back into the market on the very next paycheck that I receive after the NJHESAA loan is retired.
In real numbers, my NJHESAA loan has about $19,800 outstanding in principal right now. The accumulated value of my investments as of today is about $17,500. Obviously, I’m not quite at the point where I could cash out all of the investments and completely retire the NJHESAA loan, but I estimate that my investment portfolio will match my total outstanding principal balance sometime around mid November (you guys all know how I ridiculously overpay this student loan each month, so this estimate shouldn’t be a big surprise).
Thank you all for helping me make this big decision. Stay tuned for the latest and greatest with my student loans – the next few weeks are going to be very big!