Smart Money: ; Defer student loan debt and invest rest

DEAR BRUCE: I'm currently a graduate student. My education ispaid for, and I am receiving a stipend. However, I still have to payoff my student loans from my undergraduate years. What's the bestway to do this? Should I defer my loans until after I graduate (andinvest a certain amount every month), or should I pay them off nowwhile they're still interest-free, which would tighten my pursestrings? Also, if I were to invest, how would I go about it?

G.M.

Ann Arbor, Mich.

DEAR G.M.: You are fortunate that your education is being paidfor. As long as student loans can be deferred interest-free, I wouldinvest the money elsewhere. Anytime you have interest-free money -and it is truly interest-free with no penalties - it is wise to takeadvantage of it.

You are obviously an intelligent person, and you should spend alittle time becoming knowledgeable with regard to investmentoptions: stocks, bonds, mutual funds, etc.

This effort now will pay dividends for the rest of your life.

DEAR BRUCE: I recently divorced my husband of 20 years. He istrying to keep me from getting any of his retirement benefits. He isa 30-year federal government employee with a savings plan, a defined-contribution plan and federal-employee retirement-system defined-benefit plan. Can he legally do this? We live in a community-property state. His attorney has been stonewalling for a year andhalf now. I have asked my new attorney to request the financialdocuments through the court.

Reader

via e-mail

DEAR READER: Under most circumstances, you would have an interestin his retirement benefits. I can see why he would not be happyabout that.

You mentioned that his attorney has been "stonewalling." The onlyway an attorney can stonewall for that period of time is because ofinattention by your attorney, and I suspect that's the case becauseyou've hired the new guy. Have him get on it and stay on yourhusband's lawyer. If your guy puts some pressure on him, yourhusband's lawyer will have to come up with whatever information isrequested.

I can't help but observe that it's amazing so many spouses - whoapparently loved their mates for years - fight so vigorously to geta fair and equitable distribution. I will never understand that.

Send your questions to: Smart Money, P.O. Box 2095, Elfers, FL34680. E-mail to: bruce@ brucewilliams.com. Questions of generalinterest will be answered in future columns. Owing to the volume ofmail, personal replies cannot be provided.