<prompt> Human: 46 years old. 48k in student debt. After child support, spousal support, monthly living costs, etc., I dont make enough to make an appreciable dent in the principal, so Im on the treadmill.Pension balance is around 60k. I have 20 more years to work regardless of all other circumstances.What happens if I cash out the pension to pay off the student debt? The idea of living debt free is hugely liberating.Edit: The interest rates arent terrible highest is 6.8.Would the 10 penalty be in addition to my current tax rate? I just glanced at a table; looks I pay 22.Help me understand if Ive got this right: I take the 60k, they take the penalty right off the top. Leaves me 54k. I then pay my normal tax rate on the 54k as well as my normal income less all the deductions, etc. So on the 54k Im liable for 24 in additional taxes Ill get bumped because of the higher income, which is 12k. So I net 42k. Right?  <response>: Bad idea. Youll owe income taxes plus a 10 penalty. Unless your student loans are from Joe Loanshark, the interest rates cant be that bad. 