First, you're doing very well. People at your stage of life are more likely to be worrying about how to pay the rent than whether to use savings to pay off debt completely. So feel good about yourself for having that kind of problem.

Thanks. I will admit that I'm partly in this position since my dad paid off the unsubsidized half of the loan a long time ago. And, like, I've thought about saving up money to pay him back, but...he doesn't care about that sort of thing.

The conventional wisdom is to have at least 3-6 months' expenses socked away (my goal is to have at least 6 paychecks, or 12 weeks' take-home pay, which is more than 3 months' expenses). So I'd suggest that you not pay off the student loan if it takes your savings below that level.

I would have about that much left, especially if I, you know, continued to have a job. But even without the job, I would have enough to live on for 3-6 months, I think.

Can't argue with the folks encouraging you to look at consolidation or other options that may reduce the interest rate.

I looked into consolidation, but as far as I could tell, I can't do that if I only have ONE LOAN. I mean...you can't consolidate one thing. So I don't know how to get this interest rate reduced.

But I'll add that you can pay down the principal without paying off completely. Either in a lump sum or by adding a little something extra every month. (We do the latter with our mortgage -- it's surprising how fast the benefits show up on monthly statements!)

Is there a way I can specify all my money go to principal? I was sort of annoyed when I made my thousand-dollar slam a month ago because I'd miscalculated the timing and ended up using a lot for interest. I think the way my loan works, actually, all I have to do is make the payment the day after my monthly payment is due. Because the interest is calculated between payments. So if I make a small payment followed by a large payment, there's very little interest for the large payment.

Finally, a subject that neither you nor anyone else raised, but it crossed my mind. How well are your savings working for you? I recently moved a fair amount of my liquid reserve (that 3-6 months expenses I was talking about above) from a bank account paying 0.2% to a bank account paying over 4%. Same safety, big difference in return. (A short-term corporate bond mutual fund is a little riskier -- but not a lot -- and can also offer decent return.)

I've been thinking about this too since, yeah, I just have it all in a savings account that's probably doing very little for me. Few dollars a month.

On a similar topic, if you have your liquid reserve in place, you might want to look at investing with a longer timeframe in mind. I'm not giving any advice on specifics, but if you want to look in that direction, find a copy of Investing for Dummies, Kiplinger's Personal Finance magazine, or the like.

Investing scares me. But it sure is fun to have stock options, which didn't cost me a thing and can only ever give me money. I do have money to play with, though. The company also has an employee purchase plan that pays off after quarters (you get to buy at the lowest price and sell at the highest price within the quarter, so you always win).

Oh, and speaking of investing: any advice on where to put my 401(k)? I was given a list of choices but had no idea what they were, so I'm actually not sure where it's going at the moment.

Thanks a lot for the advice, Fred!

P-C, I was also going to suggest a money market account or something for your savings--anything to get a higher interest rate than a regular savings account while still giving you plenty of access to your money.

Money market accounts still give me the same access as a regular savings account? I was thinking about CDs, which I know keep my money away from me. Money market accounts have high fees or something, though, right?

there would have been a few months where there were no carries in the Iran/Iraq region

Ah, this is where things get tricky. You have to remember we have carriers out of both the east and the west coast. There is always one out from each coast all the time. I'm guessing whoever is out of the west coast right now was intended to relieve the Enterprise (and probably still is), but the Ike was sent out early to give 2 ship coverage with whichever west coast carrier is currently deployed.

P-C, I was also going to suggest a money market account or something for your savings--anything to get a higher interest rate than a regular savings account while still giving you plenty of access to your money.

We love the ING account. We have 4!

I've heard about that thing. I think my uncle used it too.

I have no problem with the concept of a zucchini latte, possibly because I love the zucchini bread so much. However, I will note that pumpkin is a sweeter/smoother taste than zucchini, so it is more probable as a latte. That said, I can't stand the pumpkin lattes, because they're way too frickin' sweet. If you took the pumpkin & yogurt bit from kaddo and made that into a drink, I'd totally drink that.

I love the image of attack Olivia. Sort of like Hobbes greeting Calvin at the door.

That's exactly where my mind went!

Thanks. I will admit that I'm partly in this position since my dad paid off the unsubsidized half of the loan a long time ago. And, like, I've thought about saving up money to pay him back, but...he doesn't care about that sort of thing.

On another topic, sort of, it occurs to me that maybe you can keep this in your back pocket, mentally, to take some of the sting out of all the gold earrings and such? Hope I'm not overstepping in suggesting that.

All this talk of pumpkin makes me want to go to Helmand's and get that pumpkin yougurty thingamabob.

We love the ING account. We have 4!

Just started one of those!

I pack for Pittsburgh for a weekend on my own with my college friend. DH gets the kids all weekend and I get to drink wine and sleep late.

YAY!

Given all the talk about the Navy - Fleet Week is a known quantity, yes? It's known which ship will be at Fleet Week, etc.? Does that question make sense?

ING is free, has crazy excellent interest (4.4% for plain ole savings), is easy to transfer money in and out, also has CDs and IRAs that you can link to any accounts.

I am large with the ING love.