Not sure what to offer as it's your business and decision, but when faced with college costs for my daughter we decided to say no to any loans and instead pay for all costs as we go, even if it meant giving up some "discretionary extravagances". Top Raman ain't that bad once you get used to it
Our sitch is obviously different than yours so it's apples to oranges but we felt student loans were evil and should be avoided if at all possible.
If you have the $$$ to pay for the education, seems like paying off the loans would be a good thing so when she gradi-ates she can start fresh without a debt burdon.