<prompt> Human: I dont really know how to do this accounting math correctly. Hopefully you can help.40k outstanding student loans at about 6.85- I currently pay 800 per month minimum is 668116k mortgage balance at 3.375- I currently pay the minimum 530 while I square away the higher interest loans.- Home value is probably about 200kIncome is good, credit rating is good, other debts car and credit card are fine, savings retirement are decent, everybody is comfortable.The question is just one of accounting: Does it make sense for me to take equity from the home to pay off the student loans?Lets say I can get a 40k 5-year loan from the credit union at 3.49 with no costs. By my calculations, if I keep making my 800 payment, I would pay that off in 55 months and pay 3,287 in interest.That seems better obviously than continuing with my 800 student loan payments, which will take 60 months and 7,231 in interest.However, how do the tax implications come into play? Id lose up to 2500 in deductions per year for the student loan interest. But I gain the ability to deduct the additional home-secured loan interest. Is there any meaningful impact to that switch?Other than a 20 or greater drop in the value of my home in the next 5 years, is there any reason to think that taking the Home Equity loan is not a smart idea? I plan on owning the home long-term. Our financials are secure. I just want to pay off the non-mortgage debt as soon as possible while keeping a good buffer of income and savings in case of emergencies i.e., thats why I dont just pay it all off now with savings or pay more than 800.Thanks for abiding my long-winded explanation.tl;dr: Should I take a 40k home equity loan at 3.49 which, when combined with my mortgage would put me right up against 80 LTV to pay off 40k in student loans at 6.85? Will it save me money and help me pay off the loan faster by doing so?  <response>: If you can pull this off, it is a great move. You lower your interest rate cost and you convert life-time non-dischargeable debt into ordinary house debt. Not that you want bankruptcy, but if something dire happened, you are much much better off with this arrangement.The possible downside is that in a terrible situation, you have put this house at risk. It could be possible to be foreclosed if you do not pay. All things considered, I think you are much better off, and pay the loan much quicker if you make this move. Good idea! 