I am trying to decide how aggressive to be with a low-interest student loan while my emergency fund is still small.
The minimum payment is comfortable and the interest rate is not high. I currently have about one month of basic expenses in cash. I could keep making extra loan payments, or redirect that money until I have maybe three months saved.
I know this is partly about risk tolerance, but having only one month of buffer feels increasingly thin now that I am paying my own rent and bills. Is there a useful way to think about the tradeoff besides comparing the loan rate with savings interest?