I have my loans through Iowa Student Loan and so does my wife; however, she has some private loans too. One of the private loans has a balance of $2,300, interest rate of 6%, and the monthly payment is $50. We have money in our savings account (which is actually a money market account earning approximately 3.5%). Should I take $2,300 out of our savings (money market) to pay off the student loan and take the $50 per month that we would be putting towards the student loan and put it in our savings (money market)?
I would like to pay off the other private loans that have a larger balance and higher interest rate, but think taking that much out of savings would be unwise. What do you think?

Yes, and no.

Take the $1300 that you have and pay toward the loan. Do this yesterday.

Continue making $50 payments until the loan is paid off.

Then, take the $50 that you are paying now on this loan and pay it toward another balance along with any amount that you are already paying ($50 + $x = new amount paid each month).

When the second balance is paid, take the $50 that you paid on your $2300 loan, add it to what you were paying on the second balance, and start whittling away at a third balance ($50 + $x + $y = new amount paid each month to third creditor).

Then, continue the process, rolling your previous monthly payments from debts you have paid off toward paying off the next outstanding balance.

You are attacking each one in turn and using the money that you were paying to everyone previously as added ammunition to get it all paid quickly.

Prioritize your balances as you see fit. Some choose to go with the highest balance debt first. Others choose to attack the highest interest rate. Still a third group gets on the lowest balance first.

Either way, pick a path and stick with it. Eventually, you will be making a humongous payment to your one remaining creditor. You will be done with all this before you know it.

Until you get all of this paid, don't finance anything. Pay cash for everything. If you can't pay cash for something, don't buy it.