Just wanted to share a success story from my family. My wife and I paid off her student loan debt, to the tune of roughly 35k just last week. I got tired of paying the interest, while I had an excess cash problem in our accounts (as I viewed it). I have been doing a bit of obsessive research on finances in the past few years, trying to maximize my successes in life.
A little background if interested:
He: 26, near 27
Built a house in Summer 2010, Married almost 2 years
We currently put in about 10% to our company defined plans (401k and 403). Mine will start matching 3% this year. We both carry pensions at our current employers. I am not sure how long we will both be employed with current employers -- I will definitely jump ship again [Software Industry]. I also max both of our Roth IRAs each year. Oh, and in addition I put 3k in a kids college fund and intend to do so for the next 20 years.
At the end of 2012 a finance snapshot put us somewhere like this:
His IRA: ~33k
His 401: ~ 5k
Her 403: ~2k
His Roth: ~15k
Her Roth: ~5k
College Fund: ~6k
~35k student loan (hers)
~6.5k car loan
~200k at 3.25 mortgage
So, I opted to take our high cash volume and pay off the student loans. I now opted to take that payment and apply it towards our mortgage principal, paying roughly 1.5x the amount applying over-payment to principal. This should make my 30 yr an 18 year or so mortg. Proud of us, we both were a little worried. But I feel we need to be even more aggressive with our savings to reach my most prized goal in life (aside from a family) -- to retire at about 52-55, as my parents did.
Just thought I would share a success story. Feel free to chime in on any suggestions seen.