Student Loan Trade-Offs

Student loans sit in a gray zone. A degree can raise earning power, but the debt still has to fit the likely income. Instead of a single 6% rule, compare the guaranteed return from repayment with the uncertain return from investing, while also considering emergency savings, employer matches, tax treatment, forgiveness programs, loan type, and psychological stress. Higher-rate debt usually deserves faster attention; lower-rate debt may leave room for investing, but it is a planning decision, not an automatic command.