Wednesday, April 2, 2014

Extra payments on Student Loans

My hope was, initially, to make large (at least $1500/month) payments on my student loans throughout this year, but the dental work blew that out of the water. However, when I found out that I would be spending the majority of my disposal income this year on dental work I started making efforts to make extra payments on my last 2 (I consider it one) student loans. So despite the major blow to my debt payoff plan, I have still managed to make extra payments.  The minimum payment is $202.37/a month for both loans combined.  The larger loan (over $20,000) has a minimum payment of $150.82, the smaller loan has a minimum payment of $51.55.  I am paying $300 ($150.82 towards the big loan and $149.18 towards the small loan) at the end of each month.  Then mid-month I am making a $165 payment on the smaller loan.  The smaller loan is over $6,000 so I am using the extra payments to chip away at it so that at the end of the year only a few thousand dollars will be left.  Any money that I have left at the end of the year that does not go toward dental expenses I can put on that smaller loan and pay it down even further.  The sooner I pay down the smaller loan I will be able to use that extra $51.55 to pay on the bigger loan. 

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