What would you do?

[DaFace]

Originally Posted by seclark

if it's financially possible, i would pay it off. i'm a different kinda cat, though.
put me down on that tittay list also, please.
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Originally Posted by Pestilence

I would pay it off now while you can. You never know what's going to happen with the government.

For what it's worth, this is what my gut says to do, but my mathematical brain says Option 2 is the way to go. It's a pretty simple equation, really. If we pay it off, the expected value is $18,700 (100% chance of that happening - again oversimplified). If we don't, I'd calculate the expected value as being $11,875 (25% chance of getting screwed and paying $25k total + 75% chance of not getting screwed and paying $7500 total).