<prompt> Human: Hello PF! Long time lurker, first time poster with a throwaway to keep who I am hidden from those who know my main. My partner is about to receive 25k from a trust disbursement. I have researched different courses of action from the sidebar, but I would like to hear what PF has to say also. I have included a breakdown of our budget and accounts below. We have both been at our current jobs for 1 year, which has allowed us to save hooray!. We feel secure in both of our positions. We live in a midwest city. We are currently on track to max both of our 401ks, IRAs, and HSAs for this year. Assets:Emergency Fund: 8000 HSAs: 3000 IRAs: 12000 401ks: 32000 House down payment savings: 13000 Total: 68000 Debts: Student Loan 1: 3700 3.15 Student Loan 2: 8400 4.25Student Loan 3: 5800 5.35Student Loan 4: 5000 5.75 Total: 23000 Net Income: 4500 Monthly Budget: Rent incl. utilities: 700 Parking: 75 Car Insurance: 85 Gasoline: 45? Internet: 55 Netflix: 8 FoodGroceries: 300 Restaurants: 80 Beer Money: 50 Other fun electronics, music: 50 IRA funds: 900 Total 2573 Net income after expenses: 1900 This full amount is currently going to our downpayment fund. There are two different avenues we are looking at. I suggested that we pay off the 5 student loans approx. 11,000 and use the rest as a house down payment 14000. As a note, the student loan payment is consolidated into one payment, therefore this payment would not lower with any payoff. My partner said we could knock out all student loans 23000 and use the remaining for a house down payment 2000. We are both open to both ideas, or any other ideas that you great folks come up with. Our short term goal 3-6 months is to buy a property. We want the minimum 20 down, but we are fully qualified for a 5 downpayment with lender paid PMI conventional loan. With this being said, our employer offers a 20k forgivable loan if you buy a property within certain areas in the city which we are looking to utilize. We have already begun searching for properties. Property values in our city vary wildly, but we are looking at neighborhoods where the realistic price is anywhere from 100k to 250k. large range, indeed The number of properties are very limited and properties sell within a week of being on the market. We know our rent situation right now is superb, but it is a goal of ours to own a property in the city. We plan to divert half of our leftover money each month to pay off a house once purchased and the other half to pay down any student loan debt left, and then to fund taxable accounts. So PF, what should we do with an extra 25k? Any comments on budget are welcome as well. Edit: Some clarifying information on mortgage situation from comments below. We are already fully approved our lender does full approvals for purchases. Right now, we are approved for 10 down on 180k, 3.875. We also have an interesting situation where our employer gives us a 20k forgivable loan for purchasing a property within a specific area, so we have a downpayment right now of 33k. We have already been approved for this extra 20k.  <response>: My boyfriend says this: There is no point in having a savings account if you have debt that can be paid off.I would do what many others said and just pay off the loans. Better to get rid of those bad boys sooner rather than later. 