Q&A: Is it wise to use retirement funds to pay down student loans?

Question by Dinah: Is it wise to use retirement funds to pay down student loans?
I have a stale retirement fund (from a past job) that I have not withdrawn. Is it wise to withdraw these funds (pay the penalty) and use the money to pay a student loan?
At one point, I wanted to roll this money over into an IRA account that I opened.
My loan is deferred but I still make payments. The interest rate is rock-bottom low. I’m glad about that. I’ve got a good traditional IRA with a brokerage firm. I don’t pay brokerage fees, either. They’ve got great customer service.
My loan is deferred but I still make payments. The interest rate is rock-bottom low. I’m glad about that. I’ve got a good traditional IRA with a brokerage firm. I don’t pay brokerage fees, either. They’ve got great customer service.

Best answer:

Answer by Kathleen
No

What do you think? Answer below!

Bookmark and Share
Tags : , , , , ,

One thought on “Q&A: Is it wise to use retirement funds to pay down student loans?”

  1. Student loans are not bad for credit.
    Just continue paying your loans “as is”.
    The interest rate is probably very low

    IF you take it out of your old 401K you will get hit with a 10% penalty and taxes
    Call up a company like Charles Schwab, TD Ameritrade, or Fidelity and roll over the account into a roll over IRA. They will walk you through this – very easy

Leave a Reply