My husband recently passed away at the age of 51. The only debt we had outside our mortgage was his student loan, which has a rate of 2%, a balance of 13K and a monthly payment of $125. We had decided not to pay it off because we preferred to invest the funds.
Now that he is passed, I am feeling like it might be better to just pay it off.
Reasons for doing so:
Since he is gone, I feel in my gut that paying off his last debt is the right thing for me.
The cash isn't an issue; his life insurance is in a taxable brokerage account so I can easily pull the money from there.
I can't write off the nominal interest anyway.
On the other hand, I can keep that money in an investment account where it will yield much more than the loan is costing.
If you were in my shoes, what would you do?