• Lisa Ericson

Can I repay my student loans earlier?

You can repay your federal student loan at a faster pace than required from your original plan. If done wisely, it will help you save significantly on interest payments.

L. from Alabama, $11K of student loans debt

Federal student loans have the option of repaying larger than minimum amounts payments. Increasing the monthly payments will result in lowered overall total debt cost. For L. it means that the standard repayment will cost $116 per month and approximately $3,000 in interest cost. Increasing the repayment to $200 a month would save L. 50% (!) of his interest costs, and will help him become debt free in just 5 years instead of 10 years on his initial repayment plan.

Want to become debt free faster? Money Compass allows you to easily find the best repayment plan to fit your goals. Click here to give it a try

Have a specific question regarding your loans? Send it to FreeAdvice@moneycompass.io

#studentloans #studentdebt


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