I was reading My Pretty Pennies’ post on her desire to be debt free, and I realized that – despite a fair amount of student loan debt – I really have no burning desire to pay it off.
The balance is right around $15,000 (check my NetWorthIQ if you want specific numbers), and right now its in deferment since I was in grad school. When it starts accruing interest again, the rate will be around 4%. I could certainly get the whole amount paid off in a year if I decided to focus on it, and I have enough in savings to pay off the entire amount today (although not without severely cripppling my savings!).
What’s interesting to me is why it doesn’t bother me. All of my other debts – my credit card debt, my car loan – really bothered me. I tried to get them paid down as soon as possible. Maybe it’s because student loans are considered “good debt,” or maybe the low interest rate is what keeps me yawning when I see the balance. Perhaps it’s just that I know I could pay it off if I wanted to. Or possibly the low monthly payment isn’t enough to bother me.
I’ll probably still pay it off a little early, out of boredom or simply good sense. 4% is better than what my ING account is earning, and it’s sort of miles better than my investments, current run-up notwithstanding.
It’s just, with the focus in the blogosphere on being debt-free, I think it’s weird that I don’t even really blink at 5 figures of debt sitting on my balance sheet.
Do you think I’m weird, or just stupid? Leave your thoughts in the comments!