Tripod,
Student loans have forebearance and deferment for job loss and disability.
You also seem to apply the inflationary number 4% to the ROI on the 401(k) but not apply it to the student loan.
If he's paying 2.65% on the student loan and there is 4% inflation, hell, that's great, right?
His student loan balance is just getting smaller by looking at it with high inflation. He's got cheap money.
We could argue about 6, 8 or 10%. . . I personally think the stock market will stall at 0% the next 5 years until we are able to get on an alternative energy source in America. Once that happens, there will probably be a run-up. to catch up to 6-8%.
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