Do a little of both. Susie Orman says you should never miss a student loan payment under any circumstances, that is worse than missing a credit card payment. So, make your student loan payments on time and save as much as possible for a down payment. The more you put down on a home the better. The more you have for a down payment will make it easier to get a loan, will get you lower payments, and lower interest rate. Also, make sure you have a retirement plan.