As tempting as it may be to splurge after paying off your student loans, you should take the money that you were making payments on to pay off any high-interest debt like credit cards or other loans.
It is possible to take a small percentage of your money and put it into savings for a “rainy day”, but I wouldn’t recommend the whole amount because your money is growing at a snail’s pace, while your debt is growing at lightning speed.
Investing the entire amount of your “new money” is smart when you have no debt, but putting your money in high-risk investments is risky in the event the market doesn’t work in your favor. You may not accrue additional debt this way, but it will prolong how long you will be paying on your current balance.
No matter what you do with your extra cash, just make a great decision and weigh the pros and cons before you spend even one penny.