So I think I know what I want to do about paying off DH's student loans (vs buying a car with cash). I realized that much of the money is tied up in CD's which mature in February and March. So my current plan is to payoff one of DH's student loans in January to the tune of $8500. After this I have to get a couple questions answered.

1) Will APLE pay his undergraduate loans or only his graduate loans? If they will pay the undergrad loans then we can pay off without worry.
2) When will APLE send the check in?
3) When will our situation with the district overpayment be resolved?
4) How much will be owe the district?

I have about $6K set aside to deal with the district overpayment that I would love to have free. If I can resolve these two bureaucratic nightmares then I will free up $5K-8K which I can later use to buy a car. Plus if DH can get summer school then we can use that extra income to buy a car.

I realized one main reason to pay off the student loans is to keep from having a monthly payment right now when our budget is already tight. The debt payment would come out of our Savings budget anyway.