Student Loan Payoff Tool
Take control of your educational debt. See exactly how strategic extra payments can accelerate your path to being debt-free.
Student Loan Repayment Strategies
The Avalanche Method
If you have multiple student loans (e.g., subsidized vs. unsubsidized), list them from highest interest rate to lowest. Make minimum payments on all of them, but throw all extra cash at the loan with the highest rate. This minimizes the total interest you pay over time.
The Biweekly Payment Strategy
Instead of making one full payment a month, make half a payment every two weeks. Because there are 52 weeks in a year, this results in 26 half-payments, which equals 13 full payments per year. It is an easy way to sneak in an extra payment annually without feeling a budget crunch.
Capitalized Interest Alert
If you recently graduated or exited an in-school deferment, unpaid interest may "capitalize" (be added to your principal balance). Try to pay off any accrued interest before it capitalizes to prevent paying "interest on your interest."