Should one pay off a $5,000 federal college student loan with a 3.5% interest rate or $5,000 of credit card debt with 9.0% interest rate? Generally one would think that it is best to pay off a $5,000 credit card because of the higher rate. But did you know, that federal student loan debt is not dischargeable; that is, if you file for bankruptcy, the student loan debt is not forgiven by the courts, whereas credit card debt is! So the next time you are paying bills, weigh the options.