<prompt> Human: Hello all, My father passed away unexpectedly a few months ago leaving me 30,M with a substantial amount from his life insurance policy around 125k. I have a decent salary 60k and around 20k in savings. Renting, no car payment, live somewhat frugally with my partner. I do have about 105k in federal student loans which Id planned on discharging through student loan forgiveness. Im on a PAYE plan and have been working at a non-profit for two years, with 8 years to go until the loans are forgiven. Until now, Id been saving for a house. Now, with this unexpected income, I could wipe my debt out entirely.Im wondering how to approach this issue. On my current PAYE plan, I wouldnt even be paying 30 of the total debt plus tax once its forgiven. I like working in non-profits and have no desire to join the private sector for the next decade. Im also in a masters program which is almost fully subsidized by my employer. In short, I could wipe my debt out now, or saveinvest around 140k for a future home. I have experience budgetingsaving but not with investing. Any tips or insight would be much appreciated. Thank you. Edit: for those mentioning interest ratesthese are federal loans so the amount Id end up paying through student loan forgiveness would not even touch the principal plus interest after ten years. Paying the full loan off would essentially mean forfeiting the benefits of this program to the tune of 30-50k.  <response>: All of the Federal loan forgiveness stuff makes me super uncomfortable. My wife just graduated her DVM program with 150,000. Were trying to aggressively pay this down because as I understand it, theres nothing stopping the government 10 years into your 30 year loan saying, mmm, were not going to forgive that balance. I dont need to be accruing interest my whole adult life only to be saddled with a no-asset-mortgage when I should be solidifying my retirement.My inclination would be to pay off all or the majority of the student loans. If I didnt have loans then my life would be so much easier and more flexible instead of having this 1200-1500 a month payment. Imagine being able to save or invest that kind of money? Long story short, I would wipe out the debt, and then save for the house. Im jealous of your opportunity, though Im sorry youre experiencing the loss that got you to it. Best of luck! 