<prompt> Human: I have two student loans I am paying off, and I just received an inheritance. I want to use the inheritance in the most financially responsible way. Here are the specifics:Loan 1: The loan is currently for 50,500. The minimum monthly payment is 325. The interest rate is 6.870.Loan 2: The loan is currently for 5,200. The minimum monthly payment is 75. The interest rate is 6.800.The inheritance is 20,000.I would like to use most of the inheritance to pay off part of my loan debt, and keep some of it to pad my emergency fundsavings account.Does it make the most sense for me to totally pay off the smaller loan and then put some money into the bigger loan? Does it make the most sense to leave the smaller loan totally alone, and just put a lot of money towards the bigger loan? Or should I put the money into a bond fund?The one other consideration is that currently the government will give you a tax credit for student loan interest paid during the year, up to a maximum of 4,000. For the past several years, I have spent more than 4,000 on student loan interest each year, so I have had to pay out of pocket. But if I get the interest below 4,000 per year, then for the time being, the interest cost would essentially be nullified.So what should I do? Thanks for the help! I created this throwaway to avoid connecting my financial information to my regular account, for some privacy.  <response>: I would totally eliminate the smaller one since the interest rates are basically the same. That would free up some cash flow min payments of 325 a month vs 400. 