[quote=moneymaker]A lot of variables to consider, your age, your risk tolerance, kids (college fund), desires (possibly wifes desires here too), where is the money coming from? In my case I have less to pay off at a lower rate, however I can still deduct and not get hit by caps. Personally I would pay it off if the money is coming out of the stock market, but hey I’ve been wrong many times before so I think you should consult the wife. If the money is sitting in a money market account then I would say it is probably a wash and don’t lose any sleep over it. Max out 401k/IRA/college fund and then count your blessings.
You should have already refi’d into a 15 year to get the best rate and deduction, if you didn’t then that’s one more thing you can kick yourself for.[/quote]

I think for those of you that can, you should take advantage of the tax free distribution of the 529 college savings plan, but working with a trusted relative that sends their kids to a private school, in which you pay for their tuition and they gift you back the cost of the tuition, so you can get all of your investment returns in the 529 plan tax free.