<prompt> Human: My wife and I are currently saving to purchase a home, while expecting the arrival of our first child in December. We sold our condo, netted 50k after mortgage payoff, and are currently living at my parents house. We have a monthly combined net income of 7k. Besides our existing car loans 11k total, 300month me...8k total, 250month wifey the only large monthly bill for us is her student loan. She has about 42k left to pay off in student loans. Her monthly payment is about 450, but she has an automatic payment of 700. To top it off her interest rate is 7.125We would like to tackle this loan while we are currently not making any mortgage payments. One of the thoughts I was to make monthly 5k payments while we can, and pocket the rest for home savings. I wanted to get the principal down as much as possible and then refinance the lowered principal when we were ready to move out. This would ensure the lowest possible interest rate and monthly payment, as opposed to refinancing now.Is there a better way to tackle this problem?The main things for us are lower payments, while trying not to stay at the parents house for too much longer.Thanks.  <response>: At 7.125 interest, I would use the 50K you have netted from your condo sale, and would pay off the entire student loan immediately. Even if you had to rent for a year or two, while you save up for down payment, getting rid of the high interest student loan is more than worth it. 