<prompt> Human: Ive been in the process of figuring out a strategy to pay off my student loans while trying to a. maximize the amount saved and b. get it done quickly. My first loan has been paid off within a year of graduation! yay! and the second loan is on its way. My concern is the last two... these loans have different principles with the same interest.My math gut tells me to focus on the larger principle before the smaller principle but from some cursory searching, it seems like the argument is that since the interest is effectively the same on both loans that it doesnt matter in the long run which is paid off first. Which loan would you focus on first? Why?  <response>: Since the interest rate is the same, you should focus on paying off the lower principal balance first. This will allow you to free up the minimum payment more quickly which improves your cash flow, and you will also get the psychological boost from paying the loan in full sooner. 