<prompt> Human: Hi,Im about to receive some quarterly bonus pay 10k, after tax at work that doesnt factor into my regular monthly budget. I am also a night student in the process of getting their MBA, so while I have student debt, I will also take about 20k more in loans over the next year. I effectively receive a bonus every 3 months, but they alternate between 2-3k and 10k every other bonus. I have two debts that I can apply this quarterly bonus to:1. Federal Student Loan - 40k 6.8 no payments required, but I tend to drop a couple thousand on this every quarter at a minimum2. Car Loan - 6.8k 3.78 250 a monthI have a small emergency fund, and no other debts except for a credit card I pay off every month. While mathematically, it makes the most sense to put the entire chunk on loan 1, it seems like being able to eliminate 1 debt payment would have positive monthly cash flow benefits along with some psychological ones.Just looking for some perspective. Thanks in advance!edit: if I elect to pay off my car, I would put the rest of the bonus 3.2k on my student loan.  <response>: Student loans. 6.8 3.78. Therefore, the return Edit: on your investment in paying off your student loan is higher.Def. check out the articles linked to by the AutoMod, especially the Whats the best way to pay down my debt link 