If possible, paying off any debt early may seem like a good idea – But when it comes to student loans, it could be more beneficial to put your money elsewhere. There are some calculations you should consider before making your decision to pay off your student loans early.

Today, students are graduating with immense student loan debts as college tuitions rise to unsustainable levels. We all know the deeper you are in debt, the harder it is to get out – so if you have some extra cash, should you pay down your student loans early? Due to interest costs, it sure can save you money. If you pay your debts early, think of it as an investment – You’re paying more now to owe less interest over time. It can also help free up your monthly cash flow. If you have a plan to pay $150/month for ten years, and you pay your balance early, that’s $150 more you’ll have in your pocket each month.

On the other hand, you may be able to earn a better rate of return investing in the stock market than you can by paying off your loans. (The exception to this rule is if your student loan has an interest rate higher than 10 percent.) When prioritizing your money, you should first pay off any high-interest credit card debt. You should also invest in mutual funds, like your company’s 401K. Of course, still make your regular student loan payments each month. Honolulu accountants also agree that paying off your student loans in full is not recommended if it means draining your savings account!