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[quote=Anonymous][quote=Anonymous]Clearly you should prioritize tax-advantaged retirement savings.

Beyond that:
Market returns are uncertain, and if you are planning to buy property with a mortgage in the short/medium term then I would suggest that the correct way to assess the opportunity cost of paying down your debt might be against the mortgage interest rate rather than average market return. After all, each penny you use to pay down your student loans is a penny less to use for a downpayment and reduce your mortgage.

At your income you presumably don't get a tax break on your loan payments. So the cost is 2.875 of post-tax income.

15-yr mortgage rates are about 3.25-3.5 percent, and almost certainly edging up. But you will be able to pay with pre-tax dollars given the mortage interest deduction.

So perhaps taking into account the tax deduction the interest rate you will pay on your mortage will be broadly similar to the amount you are paying on your student loans.

In which case, if paying down your debt gives you more psychological satisfaction, you might be better off doing that?[/quote]

Right…and here's where the financial discussion is pretty over my head (mortgage rates, tax deductions, etc.). Just trying to figure out if my psychological satisfaction is worth 21K. :)[/quote]

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