<prompt> Human: Over the last few years Ive been able to save 27,000 and Im thinking I should do something with it instead of leaving it in savings collecting basically no interest. My student loans are almost 21,000 with an average interest rate of 4.5. I pay 300month towards them now, and Id like to get rid of that payment, but putting out that much money at once makes me really nervous. It would still leave me with 6000, which is about 2 months pay. I currently put 600month into savings, and after paying this off I could bump that up to 900, but it would still take me over 2 years to recover at that rate. The other option Ive been considering is paying my mortgage down to eliminate my PMI. The PMI on my mortgage is 80month, and I need to pay off another 10,500 to get rid of it. This would take less of a bite out of my savings than paying off my student loans, but it also wouldnt free up as much money each month.What do you think PF? Which one of these do you think would be the most beneficial? Or is there another option I should be looking at instead?Assistant: You said your student loan average interest rate is 4.5. Am I correct in assuming that some of the loans are higher and some are lower? What are the exact rates and dollar amounts of each student loan? If it were me, I would probably do something in the middle and pay down the mortgage to get rid of PMI and pay off some of the higher rate student loans but not all of them.Human: Youre correct. They break down like this: 4200 - 3.15 4000 - 6.55 3200 - 3.61 4500 - 3.61 2000 - 4.41 2700 - 4.41  <response>: I think you should pay down the mortgage to get rid of PMI and pay off the 6.55 and 4.41 loans. For the loans below 4 I would probably just make minimum payments on. If youre not comfortable depleting your savings that much then just do the mortgage and the 6.55 loan. 