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you might want to think of this decision as return on investment of your current cash: either you "invest" the cash into your debt and "earn" the rate of interest on the debt which you no longer have to pay. or, you invest in another asset e.g. mutual fund or house and earn the return on that asset. debt, esp. student loan debt, is pretty cheap these days, so you can probably make a better return by investing in other assets. plus, i seem to recall that interest paid on student loans are tax deductible up for individuals up to a certain income. i guess that makes the psychological pain of having debt on your books a little less.
its actually a nice situation. the only really un-advisable move would be to sit on the cash and watch inflation takes its toll.
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