Pay off student loans or save money?

[Administrator]

I've graduated in college last year December. And, started paying off my student loans in February. I didn't consolidate though. The interest rate on the $25000 loan is 7.5% . I'm paying about $165 a month. I'm currently making $40000 annually and have no credit card debts yet. There are no car payments too. But I have maxed out my IRA for 2007. I do have a 401k with employer contribution. I believe ein frugal living so don't spend much on dai;ly items.i know if I can continue to pay the student loans, I will be able to deduct interest from my taxes. But I need to save also. So should I pay off student loans asap and get out of it or pay the minimum while deducting taxes for the nest 10-12 years and save the rest?

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(Source: mortgagefit.com)