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Balancing Student Loans and Saving for Retirement

Let’s say that you are a recent college graduate and that you’re trying to determine how you can save for retirement while paying down your student loans. Most advisors seem to agree that at any given moment, you should be doing a bit of both – paying down your loans while saving for retirement. One of the first things you’ll want to consider is the interest rate on your student loans. When you pay down your debt, essentially, your rate of return is guaranteed. If you pay down your debt by let’s say a thousand dollars, it means that you won’t have to pay any interest on that amount into perpetuity. Still, the math is complicated.  

Anirban tells us why. 

Anirban Basu, Chariman Chief Executive Officer of Sage Policy Group (SPG), is one of the Mid-Atlantic region's leading economic consultants. Prior to founding SPG he was Chairman and CEO of Optimal Solutions Group, a company he co-founded and which continues to operate. Anirban has also served as Director of Applied Economics and Senior Economist for RESI, where he used his extensive knowledge of the Mid-Atlantic region to support numerous clients in their strategic decision-making processes. Clients have included the Maryland Department of Transportation, St. Paul Companies, Baltimore Symphony Orchestra Players Committee and the Martin O'Malley mayoral campaign.