Hi all, I started grad school in 2011 and I'm about to graduate this coming year. 

Question 1: I took out a subsidized loan (interest accrues 6 month later) with Sallie Mae for $8,500 @ 6.8% interest. I technically had enough to pay for my tuition, but instead took out the loan because it's frozen at "$8,500" without interest until I graduate and instead put the money to my Roth IRA currently at (~$15,500). When I graduate next year (June 2014), should I pay all $8,500 off with my high-yield savings bank fund, or should I pay the minimum and put the savings to my Roth? (FYI, I have enough for Roth @$5,500 and for $8,500).

Question 2: My brother pulled out a hefty loan ($15,000), but doesn't have any funds to repay it nor does he have a roth account. I want to help him start off and my parents want to pitch in as well. My parents bought bonds that are worth $50 now, but will mature to $100 in 2020 (fixed, as in it's either $50 or $100). Should they use the bond money now (tax-free when used for school) to pay off his loans, or should they wait? I was also telling them he should start a roth account instead rather than paying the full loan amount and just pay the minimum. 

What are your thoughts, PF?
user
I took out a loan for a 6.8% interest rate on a $8,500 loan for grad school, and am considering paying it all off in full (or paying the minimum). My
assistant
Hi all, I started grad school in 2011 and I'm about to graduate this coming year. 

Question 1: I took out a subsidized loan (interest accrues 6 month later) with Sallie Mae for $8,500 @ 6.8% interest. I technically had enough to pay for my tuition, but instead took out the loan because it's frozen at "$8,500" without interest until I graduate and instead put the money to my Roth IRA currently at (~$15,500). When I graduate next year (June 2014), should I pay all $8,500 off with my high-yield savings bank fund, or should I pay the minimum and put the savings to my Roth? (FYI, I have enough for Roth @$5,500 and for $8,500).

Question 2: My brother pulled out a hefty loan ($15,000), but doesn't have any funds to repay it nor does he have a roth account. I want to help him start off and my parents want to pitch in as well. My parents bought bonds that are worth $50 now, but will mature to $100 in 2020 (fixed, as in it's either $50 or $100). Should they use the bond money now (tax-free when used for school) to pay off his loans, or should they wait? I was also telling them he should start a roth account instead rather than paying the full loan amount and just pay the minimum. 

What are your thoughts, PF?
user
Me:
assistant