Ask HN: Only pay min student debt if there's a non-0 chance it may be canceled? There's talk on the democratic side on coming up with a plan to cancel student debt. If that's the case, is there any reason to pay anything other than the absolute minimum? |
You could try to figure out the expected costs of doing what you propose. What are the odds that (for example) Warren becomes president, the plan gets passed by Congress, and is substantially unchanged? Oh, and how long does it take? The analysis changes if it takes 1 month or 3 years.
Then you need to work out what your debt would grow to, assuming minimum payment.
Warren's plan only cancels the first $50K and only for those making under $100,000/year, so you'll also need to figure out your expected salary.
Even if the expected value says it's worthwhile, you also need to consider the full effects of paying a minimum. Are you willing to risk the worst case? Perhaps the political winds change and your debt situation actually gets worse? How will it affect your credit rating in the meanwhile?