<prompt> Human: I have about 13,000 of subsidized loans 6.8 interest with interest starting in November. Should I:1. try to pay it all as quickly as possible before the end of the 2012 fiscal year, and if so now vs later most in Novemeber and a little in Decemeber, does my credit score increase if I have a small amount of debt that I show I can pay off?. 2. Or, do I only pay a certain amount off in November and December for tax purposes and the rest in 2013? I believe there is some tax benefit I think my income tax can be reduced by 2,500 a year. Assume that I am under the limit on modified AGI and that I would be able to pay off all of it by November, before interest starts.Edit: Thanks for all the quick responses. I was definitely over-thinking this and since I am relatively risk adverse I dont plan on trying to invest the money at a higher return. So much for beating the system.  <response>: v1nny is right! Pay it off. The tax deduction is worth 265 a year. Having the loan costs you 880 a year. 