I am 27 years old. I have a private student loan debt of $8000 + $25,000 in federal student loan debt, and a 403b contribution of $11900 through my current employer. I want to -I will- quit my job in May 2013 and move somewhere in Africa [no job yet].
Question: I want to withdraw all the money from my 403b and use the net of about $7500 after the penalties and the taxes to payoff my private student loan [of 8000 at 8.25 interest rate] . Please advice me, noting that I am going to quit my job, be unemployed in Africa for about 6 months after arrival.
I have a few questions about your situation:
Are you making payments to these loans at present?
Are you struggling with the payments?
Why do you want to quit your job?
So you have a job lined up in Africa after you have been there six months? If so what will you be earning and what will your expenses be?
How are you affording the trip to Africa, and do you require a Visa or are subject to Immigration laws or restrictions there?
How long do you intend to stay in Africa?
Using the retirement, even after the penalties and tax implications, appears to be shy of what you owe.
How do you intend to pay the federal loans?
Have you looked at all the options available such as deferments, forbearances, etc, for all the loans if you are even eligible?
Let me know and we can look at this closer.
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