<prompt> Human: So I am currently paying around 1500 a month toward my student loans in order to try to aggressively pay them off. I graduated this past December and was fortunate to get a good job that has given me the ability to do this and my goal has been to be debt free by the end of the year. I am still in my grace period for my loan and everything seems to be going well. But my question is, and maybe this stems from a lack of understanding of how loans work, but every month my full 1500 goes toward the principle of the loan and I am not accumulating interest month to month, so I am wondering if it would be smarter to put that money else where like building my e fund a bit currently around 3k. I am thinking about dropping my student loan payment to around 750 and putting the other 750 to use else where. Any advice is appreciated! Thanks!!  <response>: Emergency fund. If anything happens, the student loans arent going to give the money back if you need it, and they will still want paid on the balance every month. If you cant go 4-6 months without imploding your financial well being, building efund trumps Extra payments to reduce lowish interest. A few months extra at sub 5 interest rate is a modest price to pay.Liquidity liquidity liquidity. 