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Established Contributor
rifleman
Posts: 565
Registered: ‎06-11-2007
0

those pesky student loans

How do you guys do it?
If you're on a mission to pay them off fast, do you make 2 payments a month, or pay a big lump sum once a month? I may be stupid, so I was hoping someone could help me--

In general, is it better to pay $1000 once a month, or pay $500 twice a month?
Valued Contributor
Boswd
Posts: 1,065
Registered: ‎04-26-2007
0

Re: those pesky student loans

What ever works out for you the best financially.   It's just like anyother loan.   But IMO the sooner you pay it off the better, so do what is best for you without living on Ramon Noodles and Kool-Aid each month.
Frequent Contributor
jaguls66
Posts: 356
Registered: ‎06-06-2007
0

Re: those pesky student loans

who can afford both Ramen Noodles and Kool-Aid in the same month?
Established Contributor
rifleman
Posts: 565
Registered: ‎06-11-2007
0

Re: those pesky student loans

sometimes you gotta live on ramen...Seems like sometimes we exist in order to pay bills
Frequent Contributor
jenkins
Posts: 278
Registered: ‎04-29-2007
0

Re: those pesky student loans

I think for this is depends on your interest rate.  I had a private student loan through salliemae and the interest rate was pretty high, so it was in my best interest to pay more than one payment a month to keep the interest low, so i got one payment ahead and started spliting my payments half on the first then half on around the 15th.  However now that I am a military member the interest rate was dropped to like 5 or 6% so over a months time i occur like 5 dollars in interest i believe, but i still make two payments amonth sometimes even paying more than what i need. gotta love the ramen.

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Established Contributor
rifleman
Posts: 565
Registered: ‎06-11-2007
0

Re: those pesky student loans

ok so you found you paid less interest when making two payments rather then one big payment? I understand it works for biweekly mortgage payments because it's biweekly, meaning in a 52 week year you are effectively making 26 payments 52/2= 26.

With student loans however, you aren't doing it biweekly, you're doing it twice a month so it's 12*2= 24 payments. I guess this doesn't make a difference huh.

I need a Kool-aid rewards card, giving me bonus points to purchase ramen noodles with
Frequent Contributor
jaguls66
Posts: 356
Registered: ‎06-06-2007
0

Re: those pesky student loans



rifleman wrote:
I need a Kool-aid rewards card, giving me bonus points to purchase ramen noodles with


WHen you find that card let me know!

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