I have about $3,200 in my student loan balance and about $112,000 in my mortgage loan balance. My student loan interest rate is at 3.875% and my mortgage loan rate is at 5.75%. I have $5K cash that I can use to contribute towards my loans. At first, I wanted to use the extra money to pay off my mortgage loan first, since that has a higher interest rate. But, after consulting with my accountant, he told me to pay off the student loans entirely. This way it would allow me to could focus on the mortgage.
I went online and sent a payment online to my student loan provider for the payoff amount (which is different from the balance – it’s higher actually). After the payment is sent, I can say that I am freed from student loans.