<prompt> Human: I have two loans right now, both from the federal govt. One is 24,012 and the other is at 4,363. Ive been paying them off since Nov. of last year. Theyre both the same interest rate.I currently have 4,500 in my emergency fund and last night I started thinking that I should keep 1,000 in my emergency fund and use the rest 3,500 to help pay off my smallest loan. I would be able to pay off the loan in total in a few months. That would free up my 50 monthly payment to put toward my largest loan. Id like to eventually be able to pay off my largest loan in five years, depending on any pay increases in my next job I currently make 28,080.I am also putting away 250 monthly for various things like saving for my weddinghoneymoon, replacing my car, etc. What does rpersonalfinance think?  <response>: Its a kind of riskreward calculation. Youre at more of a risk if you need that money for an emergency, but if you use it youll pay less interest. How about calculating how much youll save on interest, and then ask yourself if you think thats a good trade-off for the however long it will take to rebuild your fund?Also do you have ways of mitigating the need for a full emergency fund? What kind of loan and interest rate would you need to pull to make up the difference? Would you have to resort to credit cards, could you borrow money from a relative short term, borrow against a retirement account? If you have access to cheap money in an emergency situation, you can consider being more agressive in keeping a smaller balance. 