That worked , thanks a lot ! <| sep |> Some misunderstandings . 1 When comparing different investments you compare the aftertax returns of both options . If either is taxed at full rates , or deductible at full rates , then the math nominal % return 1 marginal tax rate So 5 . 2 % 1 37 . 12 % 3 . 3 % 2 Normal loan interest is rarely tax deductible though unless trace $$ borrowed into taxed investments . I don ' t know what NSLSC is all about , but most student loans are not tax deductible . You are allowed a tax credit a different animal . You claim the credit on Schedule 1 where you see the list of items getting added up and then multiplied by the 15 % bottom Federal tax rate . Your province probably has the same deal . So the tax rate you use in the calculation is more like 22 . 5 % the bottom rate for tax credits , not your top marginal rate . 3 As teetopp says above , repaying debt principal increasing wealth . Just like adding savings to an investment portfolio . 4 The rate of return you get from repaying debt is a guaranteed return . It should be compared to the 1 % yield Treasury bonds you own in an investment portfolio not your risky assets that you feel convinced will earn humungous returns . 5 You need to repay debts as fast as possible , because most everyone has needs later in life to borrow for other reasons . And you certainly don ' t want to just add debt on top of debt on top of debt . like many do . Don ' t start with unpaid student debt , then borrow more to buy that necessary car , then borrow more to buy that home , then borrow more to make those home improvements , etc .