Pay off my student loans or save the money?

[JulyFNC]

Originally Posted by Z ee Bee

Should I pay $1000 a month on my student loans or should I put the money in a money market account and earn some interest? I'm in grad school and I work full time so I dont have to pay until 2009, but I want it all payed off before the government stops paying the interest. The trouble with having so much money in the bank is the temptation to spend it.There is no interest accruing while I am in school the interest and first bill is in Dec. '09. It will all be payed off before the first billl. I can start payments now while I'm in school and 100% goes to principal or I can put the payments in a Money Market at 4.5% (GMAC Bank).

Paying off your student loan interest can help you to improve your credit history and benefit in future.