If you have debt, you are probably aggressively paying it off, or should be. If you follow the Dave Ramsey Plan (or a version thereof as I still believe in high interest loans should be paid first), you will try to pay everything off before you save money for an emergency fund or in your retirement fund.
If you have student loan debt that will be dismissed after a certain amount of years because you work for a non-profit, for example, you might not want to pay off the loans quicker than you should.
In my case, it mathematically works out better if I pay the minimum on the loan that has capitalized interest because the principal and the interest is currently tax deductible. Therefore, I'm not in a rush to pay that off until the capitalized interest is paid off.
For me and the people whose loans will get dismissed, a savings account valued at the same amount as the student loan is necessary to feel the debt freedom that everyone should want to experience. This way, if something happens - you quit working for the non-profit, decide to move, etc., you have the freedom to pay off the loan in full and be debt-free.
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