How extra payments work
Student loans charge interest on the outstanding balance, so any amount you pay beyond the required payment reduces principal and every future month's interest. A $35,000 loan at 6% over 10 years has a standard payment of about $389 and costs around $11,600 in interest. Adding $150 a month clears it more than three years early and saves about $4,200.
When you pay extra on US federal loans, ask the servicer to apply the extra to principal and not to advance your due date, and target the highest-rate loan first if you have several.
Should you pay early?
It depends on the rate and your other options. Paying off a 6% to 8% loan early is a guaranteed return at that rate. For low-rate loans, investing extra money may grow faster over time. If you might qualify for Public Service Loan Forgiveness or an income-driven plan with forgiveness, paying early can reduce the amount forgiven, so check your plan first.
Common questions
Is it smart to pay off student loans early?
Usually for higher-rate private or federal loans. Check forgiveness programs before paying extra on federal loans.
How do I make sure extra payments go to principal?
Tell your servicer in writing or in your online account to apply extra payments to principal, highest rate first.
Should I refinance my student loans?
Refinancing federal loans into private ones can lower the rate but removes federal protections like income-driven repayment.
This calculator gives estimates for planning. Real returns, rates and prices change, so treat the result as a guide rather than a promise. Read how we build and check our calculators.