Two practices you can put into place to make sure you are keeping up with your student loan repayment plan are to put your payments on autopay, and to make biweekly payments instead of once a month. Continue reading below to learn more about how these practices can help you pay off your loan earlier.
If refinancing your loans isn’t the best option for you, enrolling in an autopay program is another good way to lower your student loan interest rate. Continue reading below to learn about setting up autopay and also how to schedule biweekly payments.
Setting Up Autopay
If you have a federal student loan, your service provider may have quarter-point interest rate discount options. This means that, if you allow your service provider to automatically deduct payments from your bank account on a monthly schedule, you may be able to have your interest rate lowered from, for example, 5% to 4.75%.
Private lenders also commonly have auto-payment discount options.
This may not be a massive savings technique, but it can still save you hundreds of dollars.
Scheduling Biweekly Payments
By making payments towards your student loan repayment plan twice a month instead of once a month, you can save some dollars from your overall interest costs and minimize your repayment schedule. It may not be much, but it’ll put you in the right mindset, so you’ll never miss a payment due date.
You can use biweekly student loan payment calculators to calculate how much time and money you can save by making payments twice a week instead of once.
You may also be able to use autopay for your biweekly payments, which may save you even more money than using just one of these strategies.