Should we save for down payment or pay off our student loans?

Should we save for down payment or pay off our student loans? and what about retirement? My partner and I want to buy a house soon. He is a young professional and I am a grad student. We are both recent university grads and are working towards paying off our school loans. The interest rate on these is about 8% (it?s a private bank loan). I am confused as to how to divide up the little money we have between paying off the education loans, saving for retirement and saving for the downpayment. What is most logical money-wise? Not to save for either retirement or downpayment until we pay off the loans in full, because we are not likely to make more than 8% in anything else? But then it may take a while to pay them off (approx. $25,000 to go). I heard that many people save for downpayment in ING savings account (if the purchase is less than 5 years away). ING savings account pays 3.5-4% in Canada, so it doesn?t seem to make much sense to do that, when we are paying 8% on our education loans. Is the better approach just keep paying off as much of education loans as possible, and then just take out the mortgage with zero downpayment? (The rates on the mortgage are low now, so we could get 5.5% rate right now). One option would be to keep paying off the education loans, until we find the house we like, and then just take out a large mortgage and cover the education loans in one shot. This way, we will only have one large relatively low-interest debt. Has anyone done this? Any advice and suggestions would be appreciated.