Should You Pay Off Student Loans Or Invest?

by Ewelina A. Caplap, MBA, MSIS, CLU®, ChFC®

Wealth Management Operations Manager


Americans Are Drastically Affected By Student Loans

In fact, over 43 million Americans carry student loan debt.1 If you're of of those who are facing what seems like never-ending student loan payments, you aren't alone. You may even be wondering what you should be focusing on right now and thinking to yourself "Should I pay off my debt? Should I invest? What's the most beneficial move for me at this time in my life?" 

You Can Do Both

The good news is, you can (and should) do both. The biggest thing that young adults run into is that they didn't start investing for their future soon enough (and the future is expensive). That's why it's important to start investing even while you are paying down your student loan debt. 

Getting Started With Investing

Graphic is explained below.

Define Your Goals

Organize your finances to help manage your money more efficiently. Remember, investing is just one component of your overall financial plan. Get a clear picture of where you are today and where you hope to see yourself 5, 20, or 50 years down the road. We have a whole list of financial goals that Coastal can help you with here

Understand The Impact Of Time

Take advantage of the power of compounding. Compounding is the earning of interest on interest, or the reinvestment of income. For instance, if you invest $1,000 and get a return of 8 percent, you will earn $80. By reinvesting the earnings and assuming the same rate of return, the following year you will earn $86.40 on your $1,080 investment. (This hypothetical example is intended as an illustration and does not reflect the performance of a specific investment). 

Get Help From The Experts

Getting expert help in creating a financial plan that integrates long-term financial goals such as retirement with other, more short-term needs can be extremely helpful. Coastal's Wealth Management team, available through CFS*, can help you define your goals, track your progress, and help you get on the right financial track for your future with a free financial review. 

Get My Free Financial Review

Review Your Progress

Financial management is an ongoing process. Once you take that first step of getting started, you will be better able to manage your money to pay for today's needs and pursue tomorrow's goals! Make sure to set monthly or quarterly check-ins to check your progress and see if there's any room for improvement.


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1. According to, 2022. 

*Non-deposit investment products and services are offered through CUSO Financial Services, L.P. ("CFS"), a registered broker-dealer Member FINRA/SIPC and SEC Registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. The Credit Union has contracted with CFS to make non-deposit investment products and services available to credit union members. Fixed insurance products are offered through CFS Insurance & Technology Services, LLC.

Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2022