<prompt> Human: I recently received a 40k payout from a car accident settlement. I owe 54k in student loans which are all in the range of 3-6.8 interest its crap I know. My payment is 500 dollars. edit:I rarely carry a balance on credit, usually keep 3-4months of expenses in savings and have paid off about 13 of my house. My wife wants to invest the money or stick it in a CD, which I agree is a good idea, though I am considering that avoiding the interest on the higher rate loans might be of greater benefit. As Im typing thing, I wonder if a better solution yet is to invest the money and also just re-finance my student loans with another lender. Ive looked into refinancing before, but nobody I could fine wants to give you even a range of what you might get until after they dig deep into your credit and personal history.  <response>: The interest you dont have to pay is like saving it in your pocket. Payoff your loans. Then continue putting 500. Month into inveatment 