New Delhi, Nov. 18 -- For many young professionals, one question keeps coming up: Should I prepay my education loan or start investing?

With limited surplus income and competing financial goals, choosing the right path can shape your long-term finances. The answer depends on your interest rate, cash flow, tax benefits and overall financial preparedness.

Here's a step-by-step way to decide what works best for you.

Start with your loan cost

If your education loan carries an interest rate above 9% per annum (after accounting for tax benefits), prepaying it aggressively usually makes sense. Your loan is expensive, and the guaranteed savings from reducing interest outgo outweigh the returns you might earn from investing.

If your interest ...