It makes no sense to pay down a car loan at 2.5% when you can make 4% (likely 3% after taxes) risk free in a HYSA or up to 5% risk free with slightly more hassle through CDs, money market accounts, or bonds.

It makes even less sense to pay down that car loan when they have student debt that is not dischargeable in bankruptcy and will soon be at 4.5% interest.

It makes even less sense again if they will soon be buying a house that will likely come with a mortgage interest rate of ~6%, plus potential PMI if their down payment is not large enough.

They're better off saving money in a HYSA now and using it toward their house downpayment when that comes. If interest rates decrease (so the HYSA is earning less and the mortgage rate is lower), they can always put the saved cash toward the car (or potentially preferably the student loans depending on what happens with payment pause/forgiveness) and come out ahead of where they'd be if they put the money toward the loans now.