How to Pay Off Student Loans More Quickly
There are some great articles and blogs offering advice and tips for paying off your student loans quicker. In short, the goal is to lower your principal balance. When you pay the minimum amount on a student loan, a portion of the payment goes to the principal, a portion to fees, and a portion to the interest rate. The lower your principal, the lower your daily accrued interest, the faster you can pay off a loan. Three quick tips recommended by Clearpoint Credit Counseling Solutions:
- If possible, pay more than the minimum monthly payment.
- If you have multiple loans and they are not consolidated, put extra money toward the loan with the highest interest rate.
- Consider making bi-weekly payments instead of monthly payments, which may help reduce your overall debt because your accumulated interest will be less.
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Federal Student Aid Repayment Estimator comparing different programs