How to Tackle Accruing Interest and Pay Off Your Student Loans Faster
Getting a handle on your student loan debt can feel like a marathon, not a sprint. One of the biggest challenges? The dreaded monster of accruing interest . It can feel like your loan balance is constantly growing, no matter how much you pay. But don't worry—you have the power to take control. This guide will show you exactly how to tackle interest head-on and supercharge your efforts to pay off your student loans faster, saving you a significant amount of money and stress in the long run. Understanding the Enemy: How Student Loan Interest Works Before we can fight it, we need to understand it. Interest is essentially the cost of borrowing money. It accrues on your loan balance daily, even if you’re not making payments (like during deferment or forbearance). Simple vs. Compound Interest: Most student loans use simple daily interest, but if you don't pay off the interest that accrues, it can capitalize, or be added to your principal loan balance. When this happens, you’ll sta...