I have two different types of loans, and I'm trying to figure out which to pay down first.
Student loans: 6 different loans totaling 41K, all at 6.55%, total monthly payments $245
401k loan: 19.5K at 4.25%, monthly payment $102
I'm projecting that I'll be able to put $1500-2000 toward extra payments each month.
Additional Info
-My job is pretty secure. I have a sense of my bosses' retirement schedules, I'm well liked by my superiors all the way up the line, getting raises, etc. I would like to have the option to move on by the end of next year 2015, but I would only do so for a great opportunity. I'm not in a hurry to leave.
-To max my workplace's 401k contributions, I put in 6%, they put in 13%, so even without extra 401k loan payments, I'm putting money into my 401k every paycheck.
-I won't be able to deduct student loan interest in 2014.
Since the interest rate on the student loans is higher than that on the 401k loan, it seems like paying on the student loans first makes sense. However, I think I should be taking future returns on the 401k loan repayments into consideration in addition to the 401k loan interest rate. How should market returns affect my math on this?