Pay Down Debt or Build Up Retirement?

I’ve really been having a difficult time figuring out whether I want to max out my Roth IRA ($5,500 for 2014) or use most of that money to pay down my student loans.  I contribute $50/month to my IRA, regardless of my loans, and my parents are awesome and they match the $50, so I will, no matter what, contribute $1,200 in 2014.  To explain, I’ll list out some pros and maybe you’ll understand the predicament.

Max out Roth IRA:

·         The money goes in taxed now and when I take it out in 40+ years, it won’t be taxed then.  This includes the interest!

·         While I may not earn the interest just in 2014 that my loan would cost, the interest lost on the loan would be recuperated many times over by the time I retire, something that would be delayed if I skipped maxing out for a year.

Pay down debt:

·         A significant amount of interest won’t accrue and won’t have to later be paid.

·         Interest paid on loans is tax deductible up to $2,500, which I probably won’t hit regardless of if I max out my Roth IRA.

·         My loan paid in full date is much sooner (about 4 months) if I use the money to pay down debt.

Looking at the numbers, I can see why I’ve been struggling.  My head says max out the Roth, but my heart is screaming “Get me out of debt!”  Even though it’s going to hurt in the short-term, maxing out my Roth IRA is going to benefit me so much more in the long-term, so I’m going to go for that.

What do you think of this plan?  Would you pay down debt or build up retirement?