I'm considering using my profit sharing and tax refund checks on my student loan and am looking for someone to check my math/reasoning.

If I pay an extra $4000 on my SL, I will go from $6644.27 total interest paid to $5493.44 total interest paid. Net effect, $1150.03 less interest paid. This would take my loan term to 44 months (3.67 years).

So, ROI/term = 1150.03 / 4000 = 28.75%

or ROI/yr = 7.83%

Other than interest deduction, am I missing something here?

If I pay an extra $4000 on my SL, I will go from $6644.27 total interest paid to $5493.44 total interest paid. Net effect, $1150.03 less interest paid. This would take my loan term to 44 months (3.67 years).

So, ROI/term = 1150.03 / 4000 = 28.75%

or ROI/yr = 7.83%

Other than interest deduction, am I missing something here?

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