I left school this summer. Here is my financial situation.
*Total debt of student loans (including interest) around 40K Breakdown of these loans: Graduate plus loans 20K @ 8.5% interest rate Unsubsidized Stafford Loans 12694 @ 6.8% Subsidized Stafford Loans 8,500 @6.8%*Earnings from work this year 20K
*Taxes paid 6K (approx.)*Savings 38K
My question is should I use funds from savings to pay off my grad plus loans (higher interest rate). I am thinking of taking off 30K from savings to pay off my student loans. If I do so, would I still be able to get refund for the taxes I have paid at the time of filing my tax returns. What is the best course of action I should take to get as much refund as I can. Also I would like to pay off my loans so that I don?t accrue too much interest rate. Im 27 and single. Don?t have a job yet and am living with my parents. And im hoping to get a job in the next 2/3 months. To date i have accrued interest in the amount of $2000
Thanks.