Strategy to Repay Student Loans

I think you have a solid plan. The best thing you can do is to deposit your $10k into some kind of high yield savings account or fixed deposit or cash management funds since investing money into ETFs need a longer runway to reap returns.

I might just pay more than the minimum $100 for Loan B if I were you. As you grow older, you have more things to save for - and there's nothing like clarity to bring you peace when you have fewer priorities to juggle in your mind. Case in point: I cleared my housing loan within 5 years. not every dollar has to be optimised for investing

If i were in your shoe, here is how i would tackle it.

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Priority List

1) Hold my TSLA stock for mid-long term, since its an investment.

2) Clear Loan A, because i dont like the feeling of paying interest.

Always keep in mind that investment return is not guaranteed, your loan interest is.

3) Once im done with Loan A, Loan B would come next. I would commit the minimum payment of $100/month while building up my emergency fund (6months INCOME).

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Thinking Process

Stocks that i buy for investment, ive the capacity to hold out the lost until i hit my target price. So don't just suck thumb but burn this experience into you (very valuable experience).

For Loan A $14k, keep in mind that even if you use your $10k savings, you will need to commit $1k per month for 4 months (Sept - Dec) to hit your goal of clearing it before Jan. I would feel that the time line is just nice, fresh start for 2024.

Jan 2024 is where you can have a feel of your current job and your spending pattern for the past 4 months. From there, you will be able to tell if your monthly budgeting for your expenses works for you. This will determine how fast you can get back into investing.

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Just my own take, talk to more people to gain better insights.

Hey! Im a financial consultant from Income.

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Congrats on your upcoming graduation!! Been there, done that & its not easy.

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I think apart from the missing info about the interest rate, i always advice my clients to ensure that they have time horizon when it comes to investing $$. Time horizon of about 15-25 years. that said, money put aside for investment usually are not as liquid as money readily available in your bank. In your case, i'm not sure how the market will turn out to be within this coming 5 years.

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Will only go for B if let say i am super confident that I can achieve the ROI i want within 5 years.. ermm.. don't time the market when it comes to investing because we humans are naturally driven by emotions particularly, fear & greed. Don't let what happen to you investing in tesla affect u in future! There's always risk that comes from investment, returns ultimatey depends on market outlook.

If the effective rate of Loan A is less than 3%, I will just pay and put in a high-interest account like GXS or other options.