Pay Off Student Loan Debt Early

Should I Pay My Student Loan Debt Early?

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Bill's Answer: Bills.com Resident Expert

That's a good question, and clearly you are making a good initial decision to aggressively pay down your debt. Our recommendation would be to make bi-weekly payments. The amortization schedule of most student loans is most likely based on monthly calculations of interest due. By making payments every two weeks, you will lower the amount of the principal used to calculate the payment, and save yourself $300-400 over the course of a two-year repayment period.

Quick Tip: Need a student loan? See the Bills.com resource Student Loans resource page. Problem with a student loan? Learn more about Student Loan Consolidation.

One other thing to keep in mind: if you have other high interest debt (like credit cards), you'll want to pay those balances down before your student loan balances. You've got a good, low rate on your student loan and if you have other debt, your cash would be better spent on the higher interest rate accounts. Learn more about student loan debt. Thanks for your question.

I hope this information helps you Find. Learn & Save.

Best,

Bill

Bills.com

Comments (2)


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Bills.com
March 23, 2010
I don't understand why she would have to pay taxes on that money. However, if you want to be absolutely certain I suggest you speak with a certified tax professional.
Mary W.
March 23, 2010
My granddaughter has 8000.00 in non secured student loans. if I pay them will she have to pay taxes on that money?
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