Should I pay off my student loans before starting to save for retirement?

I owe $60000 from college loans. I make $55000 a year and it'll take me about 9 years to pay off my loans. Should I finish paying off my loans before putting money into my 401k?

Public Comments

1. No, the interest you pay on your student loans is tax deductible, regardless of whether you itemize. The 401k is also not taxable and will earn a better return the sooner you start contributing. If your employer matches, make sure you put that same amount as your %age. Otherwise, I would suggest at least putting in about 5% and paying off all other debt before your student loans.
2. I've asked the same question to my self and the answer is easy. My student loan is at 3% interest. I can invest for about 5.3% interest. So, I make 2.3% interest on every $ I have in student loans. Pay it off as slow as you can IF the interest income rate is greater than the student loan AND you have the money to invest. If you don't have "other" investment money, then yes pay off the student loand ASAP. In your case just getting started pay on both, but maximize your investments as much as possible.
3. No. Besides other things such as tax deductible, interest income, etc... which other people already mentioned, you should remember that no one will loan you money to... retire and then die. So, better start saving for that, the earlier the better.
4. Definitely get the ball rolling on the 401k unless you got your school loan from a guy named "Vinnie" and the interest rate is about 25%. In other words, the 401k will probably have a better interest rate than what you are being charged on the school loan.
5. yes
6. NO...do both..if youwait it will cost you in the long run.Even if you put someinto retirement its something. Don't wait. AAfter you pay of the loans then put more into retirement.