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system
i have a loan with a 6.5% interest rate. should i divert money into my 401(k) instead of prepaying?
user
the long term growth is not 6.5%, it's 10% give or take. but, that return comes with risk. a standard deviation of 14%.  does the 401(k) have a match? and are you getting the full match? if no match, or you already top it off, the 6.5% is a rate that i'd be happy to get on my money. so, i would pay it off faster.  my highest rate debt is my 3.5% mortgage, which is 2.5% after tax. at 2.5%, i prefer to be a borrower, as that gap 2.5%-10% is pretty appealing, long term.
assistant