<prompt> Human: I currently have 3k in debt. When I finish school next year, Ill have somewhere between 8k and 12k.I own a fairly nice car that I paid for in full back in 2009. I recently put it on Craigslist as a feeler, and Ive had a few people offer more than I expected, with 15k being the highest offer.Would it be a smart decision for me to sell my car, buy a cheaperolder car, and use that extra cash to pay off student loans or pay for school next year so I dont have to get loans?---EDIT: I have to get 3k in subsidized loans and 1k in unsubsidized loans each semester. Im paying off the unsubsidized loans each semester already paid off this semester, so Ill probably end up with 9k in subsidized loans when I graduate next Spring. The interest rate is 3.86  <response>: Yes, it would be the smart and frugal decision.Any time you can eliminate debt, its smart. Once the student loans are paid off, you wont have to worry about making student loan payments when youre done with school. If your debt is recent, I imagine the interest rate is fairly low, but even low interest is still money you are basically throwing away.I would sell the car, buy a cheaperolder but still reliable car, then pay off your loans. Once your loans are paid off, work on saving money to bulk up your emergency fund, and put aside a small amount every month to pay for a future frugal car purchase not new! andor future car repairs. 