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I know exactly what you are talking about; my situation mirrors yours nearly exactly. It is true that you can make arguments toward both outcomes. Using money now for long term savings will likely make you come out better in the end, but it is a risk. Knowing that you can reap benefits of greater retirement savings probably outweighs paying early. I would STRONGLY not recommend prepaying with the chunks from interest-free credit cards more than just a few times because the act of opening other credit lines will NEGATIVELY affect your FICO score.

Remember that if you are investing the excess money from your loan in a undervalued stock market, the assumption is that you will reap higher than average returns. Also, remember that you really must have a large bumper of cash or highly liquid assets available, especially if you are used to having high cash flow from a job.

Good luck and let me know if you find a really good answer.

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