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I am a recent college grad with $25,000 in student loans. I am working abroad and can pay $1,500 a month towards the debt. I was wondering if I should try to pay it all off as quickly as possible (I want to get my masters degree and am a little weary of getting into MORE debt) OR if I should just pay the principal and put the money into a money market. PLEASE HELP!!!
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You need to look at two numbers. The amount of money you pay for interest and the amount of money you could earn in a money market. Then you'll be able to tell which is the better way to go. However, it's usually wise to pay down your debt as soon as possible. Most loans have you pay interest on everything before you even get to the principle, so you could spend a long time paying off interest that just keeps accruing -- putting money into a money market has to work twice as hard to put you ahead of all that interest you're paying.
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