<prompt> Human: I have been contemplating on whether it would be smart to pay off big chunks of my student loans now or if I should hold out and just pay extra each month?-I just turned 25yrs old making 57,750yr and I currently rent a house with two roommates and I am in no hurry to buy a home. I have been contributing to a traditional 401k for about a year now with 8 of my income - my employer matches 6. -I have 22,000 in student loans the highest interest rate being 6.5. I pay 320 a month on these loans currently.-My cost of living is 700.00month rentelectricgasinternetfoodinsurance-I have 40,000 in my savings and I have no car payment 2006 model car so I will not need to buy one anytime soonI keep leaning towards at least paying off half of my student loans but I keep second guessing myself on whether or not it would be smarter to just put a lot more of my income into my 401k and use some of my savings to just keep paying off the loans?  <response>: I would pay off any of your student loans 5 tomorrow, since its a guaranteed 5 return. Even if you paid it all off tomorrow, the amount left over would be plenty for an e-fund and then some. 