What is the best way to pay off student loans more quickly?
flygirl asked:
I have about $60,000 in student loans. I am now only paying interest right now because I had to defer them in the past. I have heard that if you pay ahead it just counts towards future payments, but I would really like to pay them off early and try to pay less interest.
I have about $60,000 in student loans. I am now only paying interest right now because I had to defer them in the past. I have heard that if you pay ahead it just counts towards future payments, but I would really like to pay them off early and try to pay less interest.
Tags: Ahead, Student Loans
April 24th, 2009 at 12:25 pm
If you pay an extra amount with your monthly payment, it should go toward principal. If you just pay a couple days early, it would basically count as your next payment but might save a very small amount in interest.
April 26th, 2009 at 10:20 am
Make double payments…
April 26th, 2009 at 1:07 pm
When you send in extra money, make a separate check indicating it’s to be applied to principal.
April 28th, 2009 at 6:34 pm
Any time you can lower your debt, your interest will be less. You know, I don’t know how they work – I leave my daughter to decide how she’s going to do it, and she and her “significant other” have a system. I don’t think they can be set up like a loan for a car, Simple Interest, so if you don’t have any papers on the loans, get in touch with the source, and let them give you advice. Or, go to one of your Professors, preferably in the monetary side of education, and see if he or she can put you on the right track. It stands to reason, any time you lower the balance, the interest will go down remarkably, but your credit is still good so long as you pay the interest payments themselves regularly. Good luck!