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Recommendation When Paying Off Student Loans

 

The best way to attack your student loans is to first consolidate them if possible to a lower fixed interest rate. You can start that process here. Realize consolidation lengthens the repayment term along with the cut in the interest rate so you end up paying more interest in the long run if you only pay the monthly minimum consistently. However, you will not pay more interest if you can pay more then the monthly amount--this way you are taking advantage of the reduction in interest rates but yet it is not costing you more in the long run. Therefore, accelerating payments is when you pay more then the minimal amount due every month. It is a general rule of thumb to always accelerate your payments on private student first because the interest rate is usually higher and therefore they cost you more in the long run than federal student loans.