<prompt> Human: Have a question about paying off school loans. I know someone who works for a company that will match school loan payments, up to 167month, for a total of 10k over 5 years. The company wont pay more than the 167 a month, and they just started this policy.He has about 30k total in two loans, with a sub-8 interest rate. and is making about 40k per year, gross. I personally think that he should only pay the minimum that he can on the loan, as long as it is at least the 167. Since his interest is less than the market average, I suggested he decide how much over the minimum payments he would want to spend on school payments, and instead put that toward his currently non-existent retirement. After the end of the payment matching, then he should aggressively pay off the loans. My thoughts are that he doesnt want to pay off the loans before the 5 years, because he would lose out on free money. I know there is something to be said for being debt free, and not having school loans hanging over your head, but isnt it better to take full advantage of the employer matching while funding retirement accounts?Thoughts?Thanks!  <response>: I personally think that he should only pay the minimum that he can on the loan, as long as it is at least the 167. Since his interest is less than the market averageIts decent logic, but youre forgetting that a loan repayment is a guaranteed return on your money. An investment is not guaranteed. Averages are nice, but every year like 2015 where you get a -5 return, thats a 12 net worth loss you could have capitalized on by paying off your debt. Your averages dont help you in those cases.I generally draw the cutoff at about 4-5. Above 5, debt repayment is the way to go. Below 4, take the gamble and invest. Between 4-5, dealers choice. Adjust to your risk tolerance.And yes, always take the employer match. A 1005025 instant return is better than most debts or interest rates youll find...well...anywhere. 