Should I pay extra on my student loans or invest that money instead?

Compare your loan's interest rate to your realistic expected investment return, and weigh the guaranteed return of paying down debt against market uncertainty. Paying off a 7 to 8 percent private student loan is a strong, risk-free move. But before making extra payments on low-rate federal loans, capture any employer 401(k) match, build a starter emergency fund, and consider whether you are pursuing forgiveness, in which case extra payments just reduce the balance that would have been forgiven. For most people a balanced approach works: keep minimums on low-rate federal loans, invest for retirement, and attack high-rate private debt. Model both paths with the Debt Payoff Calculator at wealthserene.com/tools/debt-payoff.