I'm not too impressed with the author's logic, but I think that if you have federally subsidized student loans (i.e. low interest rates) not paying down your lo

I'm not too impressed with the author's logic, but I think that if you have federally subsidized student loans (i.e. low interest rates) not paying down your loans is a good idea. The reason is that net worth and liquidity are two very different things. I'd much rather have $20k in a checking account and a $40k student loan balance with a $500 monthly payment then a $20k student loan balance and a $500 monthly payment. Secondly, given the that potentially some of the interest is deductible, and that the term on a student loan can be 10-25 years you can ~breakeven in the fixed income markets investing in bonds as opposed to paying down your student loan (or you can keep the maturity of those investments shorter, have a moderately negative carry, and be short interest rates)