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Education Loan Prepayment vs. Investing: Expert Guide for Young Professionals

Personal Finance

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Published on 18th November 2025, 8:05 AM

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Author

Akshat Lakshkar | Whalesbook News Team

Overview

Young professionals deciding between prepaying education loans and investing should consider loan interest rates, cash flow, and financial stability. Rates above 9% favor prepayment, while rates below 7% favor investing. Building an emergency fund is a critical first step before allocating surplus income. A balanced approach may involve continuing EMIs while investing and using bonuses for partial prepayments.