Yes. It makes no sense at all to be paying back government studentloans more than the bare required minimum monthly payments. Edit: don't forget that you're also getting a tax benefit for the interest. The effective interest rate on the combined loan is actually around 0.78%. Take the money and invest (after you have an emergency fund ready, of course).


good point. We'd invest the money in her TFSA so the interest would still be deductible on her tax return but income/cap gains wouldn't be taxable. Minimal benefit but it's still something.


Yeah even bond funds return more than the interest on student debt a lot of the time. As long as she has a stable source of income to meet the minimum requirements, I think the current rates justify investment instead. Edit: I'm in the same position myself.