Within the past year my wife and I have paid off approximately $40,000 in debt - from her car loan, my two student loans, and other misc debt (new refrigerator, hardwood floor install). I had a car lease expire so I went to purchase a new one and got a 5 year, 0% interest loan, with approximately $20,000 left.
My wife has her doctorate in healthcare and, unfortunately, the student loans racked up and has about $90,000 over the next 26 years.
Based on my estimates we're slated to pay off her student loans within 7 years. We both work full time and I do freelance consulting work on the side. I currently have enough (after taxes) saved from my freelance work to pay off my car or put it towards her student loan.
Which way is better? Should I pay off my car loan and put the $400 per month towards her student loans? Or should I keep paying the car loan and put all our extra money towards her student loans?