<prompt> Human: I currently owe 13k in student loans and have 31k in savings. It is the only debt I have and I really want to pay it off but I also am looking to buy a house within the next year. My annual salary is 37k gross not including overtime realistically its about 45k but I want to play it safe should the OT die off. So my question is, should I pay the loans off in one fell swoop or just save my money and continue making the monthly payments?  <response>: There are a number of variables you need to fill in. Whats the interest rate on your student loans? How large will your home loan be and how much will the house be?Basically, if your student loans are 6.8 and your house will be 120,000 total meaning your 24,000 left over will be 20 down then Id save pay them off. Otherwise its a question of how much youll have down and the cost you may have to pay for PMI vs. the interest rate differential since your debt-to income ratio stays the same either way. 