Pay towards Student Loan or Save for House Downpayment

So I've been debating over this, and have about a month left to decide. First off some basics about my situation. I recently graduated and started work in february and have a variety of loans left to me. Approximately as below

Fed - 22k@4.875% for 20 years
PLUS - 17.5k@6.75% for 10 years
Private - 56k@8.78%(var.) for 15 years

While my private was in its grace period (not collecting interest on accumulated interest) I have managed to save 10k in an online account growing interest (Emigrant Direct @ 4.93%). I make a decent salary but with a high cost of living and a splurge on a brand new car I am only able to allot $1000/month towards all of my student loans together.

Now comes to what I've been trying to figure out. Should I put this 10k towards my private student loan to help pay it off or keep it around for about a year when I will most likely be relocating and available to buy a house. With my minimum loan payments I would be unable to save up 10k again over 1-2 years. Keep in mind that I believe my payments once buying a house would be about equal, if not cheaper than my $1400/month rent I am paying now.
On the other hand, if I put the 10k towards my private loans now, along with leftover money each month and raises in salary over the years, I have found I will be able to pay off my private loan in 4 1/2 years. This raises to ~6 1/2 years if I don't apply the 10k and an additional 6.5k in interest on the loan.

I know there are also tax breaks for interest paid on mortgage and was wondering if anyone knows if this would even out the increased interest on my student loan. I am currently over the salary cap for deducting student loan interest.

I'm afraid if I don't keep the money now, I won't be able to muddle up a downpayment until the loan is paid off. After its paid off I would then have to save at least a year to come up with it. Needless to say I am already sick of shelling out my rent money into a bottomless pit.

Anyone have any advice or opinions they could lend me? Deadline for payment is in about a month and need to make a decision, since if I put it down I won't be able to get it back. Thanks for everything.

I'm young (22) and new to investing, but here are my thoughts.

My fiance and I both graduated from college in May '06. My student loan debt was ~$20,000 consolidated @ 4.75%. Her student loan debt is ~$16,000 @ 4.75%, $36,000 @ 8.5% and $3000 @ 11%.

We just purchased a home in March of this year. I was sick of throwing money away on rent, and living in our small 2 bedroom apartment. We didn't have much money saved up, but got a mortgage with 100% financing and 6% seller concession. It was the best thing we have done, both financially and as far as happiness goes.

If you want a house, I say save the money for a down payment on that. You can have a nice down payment and possibly avoid PMI. Also, the rate on your mortgage will be lower than the rate on your student loans, so you can then start paying that extra onto your private loans. IT will take you a few more years to pay off your private loans, but you will have all the added benedits of home ownership.

first off, a grace period on a private loan still accumulates interest.

I dont know how old you are or your financial situation but IMHO. I would make bringing down some of those loans priority 1. So unless this house your buying is a cash flow property or if buying this house is less than renting I would put the house idea off for a few years.

Your loans are probally accruing 600$ per month in interest. Thats alot of interest to just let fester.

That car also, you should not have gotten a new car, not yet at least.

And at 1000$ per month, it will take longer than 6.5 years to pay off those loans. Remember interest.

You could get the house if it wil be cheaper than renting. But I reccommend. you take about a 1.5-2 years to living frugally. During this period of time bring down that 56K at 9% to about 20K. 2 years is not along time. Every thing will be easier from then

But again, I dont know your particullar situation. Based on the little info you give, you may be an upward mobile MBA graduate whose salary is expected to grow exponentially. If thats the case then you can throw everything I said out the window.

you should put it towards the house since the interest rates on the student loan are not going to increase and you can save abit of money on rent.. and don't forget, that equity will always be available to you.