[dazraf69]

[ QUOTE ]
i'd probably prefer to put it in an index fund myself but if you can't handle a 20-30% drop i'd just pay it back.

[/ QUOTE ]

My intent was to put it in an index fund. I was planning to set up an accoutn with vanguard and place the whole sum there and contribute to it when I can. As for the potential risk, I am a firm believer that in the long run ( over a 20yr period), an index fund will return a positive gain as opposed to say a bond. I have a high telerence for variance and realize that the market is volatile but in the long run profitable.

[ QUOTE ]

1. Invest 8k of the $ in your Roth for 2006 and 2007
2. Pay 2k back
3. Set up autopay for the student loan with your bank account and further establish your credit history by paying it back.

[/ QUOTE ]

Just curious why you suggest 8,000 instead of the full 10k? As for the student loan I have a larger sum that I must pay back (grad school = $$$) and have set up autopay. And as for the credit, I am fortunate to have very good credit and that aspect right now is not an issue.

Thanks for everyones suggestions. I do not know that much about a ROTH but will look into that. As for consolodating for less than the 6.8 I am at right now..this is being worked on as we speak and looks to be able to get reduce to somewhere in the ballpark of 4.5%. SO again is this a worth while move? The risk seems to be worth it in the long run.