I recently graduated from college with $27,412.49 is student loan debt. While not as bad as other people's student loan debt or large credit card debt I would like to get rid of this debt as soon as possible. I also have some credit card debt from moving after college and not finding the job that I wanted as fast as I had thought I could. I will have this paid off by next month. I know that it is at 0% interest but I do no feel comfortable with this debt and want it gone as soon as possible. My debt breaks down to this:

Credit Card @ 0% for 15 months - $690.89

Student Loans
                                                         Starting              Current
Private Loan #1 @ 8.25%                $7,412.82          $7,412.82
Private Loan #2 @ 8.25%                $7,420.67          $7,420.67
Federal Loan @ 5.25%                    $12,579.00         $12,579.00

I want to pay off the two private loans as fast as possible. I just finished my final 2 classes online that I required to complete my degree, which makes me eligible for in school deferment of my loans. I'm going to take advantage of this to help build my Emergency Fund quicker. My goal is to have an emergency fund of $2000 in 3-4 months. I am currently at $360.

My current job doesn't offer health insurance so I'm shopping for individual insurance and I'm trying to figure out how that's going to fit into my plan, particularly HSA's. I'm also torn between debt repayment and contributing to my IRA.  On one hand I could take 2 years an put all my money towards the private student loan debt and pay it of as fast as I can. But on the other hand I could ma out the IRA and it will take me a few more years to pay the debt off but I will have $8-12,000+ more in my IRA. Does anyone have any insights on what they've done or suggestions in this matter?

I'm also looking for a part-time job to make some extra money and possibly get health benefits.

WELCOME.

It looks like you've got all the good ideas.  An emergency fund, health insurance, retirement, and NOT BEING COMFORTABLE with debt.  All VERY good ideas!

If you haven't already, make yourself a budget.  When you've got what you make, spend, and pay down on paper, you will likely have a better idea of what you would like to do with your surplus money.  You sound very interested in making immediate contributions to your IRA, but I would recommend paying towards your debt.  You are in a very good position that you are not accruing very little interest on your debts and you will want to pay the principle down as much as possible before that happens.

Sounds like you are coming up with a plan quickly to get this out of the way. Good job! 

My recommendation:

CC Debt - 0% interest - Keep this amount in online savings to earn some interest until the rate goes away. just pay minimum and apply the interest you earn to the other debts.  If you can tolerate the temporary hit on your credit score - you could borrow some on this card, keep it in savings, and use the interest to pay off debt just don't touch the money for anything else.

Private loans - can these be consolidated?  Pay these off first
Federal loan - delay this as long as possible with your deferment.  Usually 6 months out of school. If you can consolidate for lower interest rate right after graduation is the best time for this.  I rode a deferment for about 3 years (i was working and going to school) but now have to start paying once more.

Investing and paying debt - Your IRA long run should earn 10% long term properly invested. I would recommend a combination of debt repayment and investment. It will allow you to tackle both while learning how to invest while you're starting out as well as the tax advantage. Don't worry too much about maxing it out at this point.

That's my two cents!

Sometimes the 0% is still valid even after the balance is paid. Meaning if you are 4 months into the 15 month zero percent you have 11 more months to go. So that is a chance to nibble a little more at the higher rate loans. If it was me I would fucus on the debt for a while you will always have a shot at the IRA and other investments in a year or two.

  keep up the great work!!!  Go get that second job and leave the debt at the door.

I have been keeping the balance of the credit card debt in a high interest savings account and I will keep it there until the entire balance needs to be paid.

I tried consolidating the private loans but there are far fewer options for private student loan consolidation then there are for federal. Both Citibank and Sallie Mae offered me a consolidation rate of 1% higher than my current rate. It isn't much of a burden to pay the two different bills so I'm keeping it the way it is until I can get a better rate. The federal loans are consolidated and the interest rate will be down to about 3% when all of the discounts are applied. I'm going to take the maximum amount of time to pay this off.

Hello,

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Bye