Pay off student loan with mortgage money good idea or not?

Your daughter can deduct up to $2500 from her income on page 1 of her tax return. You also can deduct the mortgage interest on your house if you itemize. You both get a tax benefit by paying the interest. I look at it as free money. I would pay her loan down enough to maximize the tax benefits (she can get an amortization from the direct loan website.) Perhaps pay off her car instead? You don't get any tax benefits from holding onto a car note.

Well, just for the record, go to a financial planner. With that amount of money, that's what I'd do. OK. My quick, gut reaction without knowing some essential facts--like your tax bracket, your other deductions, your plans on having kids (and the associated costs of raising and educating them), your spouse's income and plans for continued employment, your likelihood of keeping your job, whether you enjoy travel and entertainment, and a million other factors that should affect the answers--here goes. Don't pay off your mortgage. Couple of reasons: You just got it, so there were a bunch of expenses that would be better to amortize over a longer period. At 6%, your effective expense (after tax benefit) is probably about 4%. And paying off your mortgage would convert nearly $100,000 of liquid funds--1/3 of the inheritance--into an illiquid asset. Especially in these uncertain times, you need to be liquid. Pay off your student loans. This is a slightly closer call. But the loans are a smaller chunk of cash. They're at a higher interest rate. I'd pay them off. As for investments: Here's what you might consider: Keep $100,000 liquid. Put it in CDs or money market funds. Fully fund any available retirement accounts you have. With the remaining funds, except for the $20,000 recommendation below, divide the remainder. Real Estate: 70%: Research real estate and buy several investment properties. You don't have to be risky, and you don't have to spend a huge amount. Find some properties that'll cash flow. Buy them, then assign them to a manager. Do it hands-off. Monitor it, of course. But find decent properties that'll cash flow and let the tenants pay down the mortgages. You'll get some extra cash every month, and by the time you're ready to retire they'll be totally paid off. Or you'll be able to sell them for a profit at some point in the future (probably 7-10 years). Stocks/Mutual Funds: 30%. Do your research. Then buy some good, solid, long-term investments. Keep some money left over for entertainment. Travel, if you enjoy that. Not a huge amount. In your situation, maybe $20,000 that you can spend over the next 2-3 years. So: Those are some ideas. Hope that helps.

ask your accountant or tax preparer you can deduct the interest from student loans as well as a mortgage, but it has a low cap. My wife maxes hers out fast with a 50,000 student loan. I am all in favor though of paying off any loan as fast as possible.

your mortage will have a higer interest than the student loan if you want to finish paying off the house i would use it for that since more inteterst goes to the bank and that would be smarter and then you could help your daughter,

You could also pay halve and halve

Invest would be another idea, but not right now

if there's a tax benefit to leave it as a student loan then i need to know! i owe $25,000+.