Well, you should honestly ask those questions yourself. Do you know of any investment plan that will give you a really good yield? You have to calculate it for yourself. I'd honestly pay off the loan, since 25k isn't that big of an amount in the investment world... Now, if you had about 100k+, that's another deal, as you could invest into real estate with that money and get quite a high return. You could buy a house or condo with 100k, and then lease it out, which would give you about a 15% return, so $15000 per year. But with 25k, there's nothing much you can do that will give you a high enough return.. unless you know of something? If you do, go ahead and invest it, but I would pay off the loan

You have no right to invest it. Your dad's will is that you pay the loan off if you accept the $25,000.

P S General Motors was a blue chip stock. So was Sears. Washington Mutual Bank was well respected. What if you had bought Apple at $600 but then failed to sell when it hit $700 ( a 16.67% PAPER gain)? { it was down to about $180 recently, and now did a 2/1 split so selling for about $90 per "half" share. } [ ... or whatever. It also costs money to buy and sell stock, so a small increase does not = profit.]

Invest it, you can always pay off your loans but can you always have $25k at your disposal? Imagine you invest the 25k then make money to pay off your loans in comparison to paying the loans with no monetary award.

Pay the freaking loan off - the only people that make money from your money are the people collecting administrative fees and commissions on your money. You risk not only not making anywhere near 5.91% but also losing your principal. If you gamble, be prepared to lose and then you will owe quite a bit more than $25K - more because you are still paying interest on that $25K. Some people know how to game the system - my dad's "friend" from childhood got my dad to invest with his blue chip firm - he never made my dad a dime - yet because they were friends my dad kept some money with him for decades - and yet this guy lived on a country club estate - he was making money alright - just not for his clients - he was making money OFF his clients. People that work on commission are not your friend - no matter how well you know them - it might mean they will screw you less - but it might not. Go to the casino when it's your own money and you are debt free. Hard to believe you even got into college. FYI $25K is about the cost of a car - live at home for 2 years and pay that off.

I have a current outstanding balance on my student loans of around $25,000 with an average interest rate of %5.91. My dad has offered to pay off the loan with a plan to pay back the money over time. This way we are gaining money in savings plans versus losing money on loan interest.

My question is it better to take the $25,000 and invest it and continue to make payments on the loan or to just pay off the loan right away.

In simpler terms does a best practice investing plan yield more than %5.91 with some liquidity to help make payments from time to time?

A friend in finance recommended Blue Chip and stocks and looking into REIT's. I would be going to a broker but some plan like this is generally what I would be doing if I invested.

Any recommendations on investing the $25k or paying off the loan right away?