Well, my wife and I have a pretty hefty student loan total, approaching $40K. However, with the current opportunity to lock in a rate of roughly 4%, plus receive a deduction for interest paid, it's more like a 3% effective rate. With such a low rate that I can easily beat over the long term by investing in an index fund, I am more than willing to put it on an extended payment plan with AutoPay and let it run 15-20 years.Keep in mind that it's not like I truly have the $7k to invest. It's not mine, it's FirstUSA's money. I wouldn't use it to pay down the student loan, because in a year, any unpaid balance on the card would revert to 10%+ (variable). However, putting it in a safe account to get some free interest on someone else's money didn't seems reasonable.
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