katrina2388

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.