# Q. about student loan repayment **URL:** \ **Category:** NYSpeed Off Topic\ **Created:** [August 29, 2008, 9:18am UTC](https://forums.speedlife.net/t/q-about-student-loan-repayment/54091 "2008-08-29T09:18:51Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![Penfold](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/penfold/32/5007_2.png) [@Penfold](https://forums.speedlife.net/u/Penfold)\ **Post date:** [August 29, 2008, 9:18am UTC](https://forums.speedlife.net/t/q-about-student-loan-repayment/54091/1 "2008-08-29T09:18:51Z")
OK, quick question. I have three private student loans for college right now. I am making enough money now that I can start paying them back early. I know I can pay them off early without penalty and I definitely want to pay off as much of the principal as I can while in school still. Here is my question. Of the three loans, the first has a lower interest rate than the second and third. The third loan is half the size of the first two. The interest is not being added to the principle yet. Am I better of paying back the first loan first because it is larger or the last two loans because the interest rate is higher? Thanks for any help. -Jeremy ---
**Author:** ![Joe](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/joe/32/7219_2.png) [@Joe](https://forums.speedlife.net/u/Joe)\ **Post date:** [August 29, 2008, 9:19am UTC](https://forums.speedlife.net/t/q-about-student-loan-repayment/54091/2 "2008-08-29T09:19:57Z")
Always pay off from highest interest to lowest. If you can afford to pay off one of the bigger ones, pay off the high interest one and half of one of the others. ---
**Author:** ![Penfold](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/penfold/32/5007_2.png) [@Penfold](https://forums.speedlife.net/u/Penfold)\ **Post date:** [August 29, 2008, 9:29am UTC](https://forums.speedlife.net/t/q-about-student-loan-repayment/54091/3 "2008-08-29T09:29:16Z")
Alright, thats what I was looking for, thanks! Will do. 🙂 ---
**Author:** ![boxxa](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/boxxa/32/5045_2.png) [@boxxa](https://forums.speedlife.net/u/boxxa)\ **Post date:** [August 29, 2008, 9:38am UTC](https://forums.speedlife.net/t/q-about-student-loan-repayment/54091/4 "2008-08-29T09:38:15Z")
Student loans carry no penalty to paying off early. You can pay as much as you want at any time. Def pay off the highest interest rate loan first. ---
**Author:** ![boxxa](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/boxxa/32/5045_2.png) [@boxxa](https://forums.speedlife.net/u/boxxa)\ **Post date:** [August 29, 2008, 9:39am UTC](https://forums.speedlife.net/t/q-about-student-loan-repayment/54091/5 "2008-08-29T09:39:30Z")
Also, since they are all private loans, try to consolidate into a lower fixed rate if you can and then pay them off on all at once when you can. If you have variable i think you can lock in the rate at like 3-4% now ---
**Author:** ![Penfold](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/penfold/32/5007_2.png) [@Penfold](https://forums.speedlife.net/u/Penfold)\ **Post date:** [August 29, 2008, 9:52am UTC](https://forums.speedlife.net/t/q-about-student-loan-repayment/54091/6 "2008-08-29T09:52:56Z")
but, if I consolidate now, wont I have to start paying off all of it on a regular monthly bill? I am just planning on making monthly payments to the loans of a few hundred dollars or more. ---
**Author:** ![theblue](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/theblue/32/5074_2.png) [@theblue](https://forums.speedlife.net/u/theblue)\ **Post date:** [August 29, 2008, 10:02am UTC](https://forums.speedlife.net/t/q-about-student-loan-repayment/54091/7 "2008-08-29T10:02:39Z")
so they are private unsubsidized loans which are accumulating interest but you don’t need to make payments until you graduate, right? first of all, do you have any savings… if not, work on that. after that, if you can pay off any of the loans in their entirety, then I’d probably do that. After that, then I’d work towards paying the higher interest loan. Consolidate when done school. ---
**Author:** ![Penfold](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/penfold/32/5007_2.png) [@Penfold](https://forums.speedlife.net/u/Penfold)\ **Post date:** [August 29, 2008, 12:05pm UTC](https://forums.speedlife.net/t/q-about-student-loan-repayment/54091/8 "2008-08-29T12:05:39Z")
Alright, I have some savings, but how much are we talking? I have enough to hold me over for at least 6 months without any income. ---
**Author:** ![boxxa](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/boxxa/32/5045_2.png) [@boxxa](https://forums.speedlife.net/u/boxxa)\ **Post date:** [August 29, 2008, 12:11pm UTC](https://forums.speedlife.net/t/q-about-student-loan-repayment/54091/9 "2008-08-29T12:11:53Z")
Typically, you have the option to wave payments for 6 months after graduation. When you get to that point, you can lock the rates into a low fixed rate so you have one payment with one intrest rate at once that wont change. ---
**Author:** ![walter](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/walter/32/7202_2.png) [@walter](https://forums.speedlife.net/u/walter)\ **Post date:** [August 29, 2008, 12:14pm UTC](https://forums.speedlife.net/t/q-about-student-loan-repayment/54091/10 "2008-08-29T12:14:45Z")
> [@Joe](#): > > Always pay off from highest interest to lowest. If you can afford to pay off one of the bigger ones, pay off the high interest one and half of one of the others. Not true. Pay off the loan with the highest interest (payment) first. Depending on term and principal, it may not be the loan with the highest intereste _rate_ ---
**Author:** ![theblue](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/theblue/32/5074_2.png) [@theblue](https://forums.speedlife.net/u/theblue)\ **Post date:** [August 29, 2008, 12:14pm UTC](https://forums.speedlife.net/t/q-about-student-loan-repayment/54091/11 "2008-08-29T12:14:52Z")
> [@Penfold](#): > > Alright, I have some savings, but how much are we talking? I have enough to hold me over for at least 6 months without any income. that’s plenty… pay them loans off before you change your mind. ---
**Author:** ![Penfold](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/penfold/32/5007_2.png) [@Penfold](https://forums.speedlife.net/u/Penfold)\ **Post date:** [August 29, 2008, 12:16pm UTC](https://forums.speedlife.net/t/q-about-student-loan-repayment/54091/12 "2008-08-29T12:16:04Z")
Yeah, but I do not graduate for two years. I want to start paying the loans off now. I want a lower payment after college because I will be buying a house. Or am I better off just saving up for a large down payment on a house instead? I figured starting to pay off the loans would improve my credit as well. ---
**Author:** ![walter](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/walter/32/7202_2.png) [@walter](https://forums.speedlife.net/u/walter)\ **Post date:** [August 29, 2008, 12:20pm UTC](https://forums.speedlife.net/t/q-about-student-loan-repayment/54091/13 "2008-08-29T12:20:13Z")
> [@Penfold](#): > > Yeah, but I do not graduate for two years. I want to start paying the loans off now. I want a lower payment after college because I will be buying a house. > > Or am I better off just saving up for a large down payment on a house instead? > > I figured starting to pay off the loans would improve my credit as well. Interest and payments on Student Loans are extremely low. Add in that they are tax deductible and you will be better off not paying them off and saving that money for the house. Once your AGI exceeds the limit for the tax deduction it will make more sense to try and pay them off. Until then, throw the money in a savings or CD and hold on to it. Paying off the loans will not appreciably affect your credit. ---
**Author:** ![theblue](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/theblue/32/5074_2.png) [@theblue](https://forums.speedlife.net/u/theblue)\ **Post date:** [August 29, 2008, 12:27pm UTC](https://forums.speedlife.net/t/q-about-student-loan-repayment/54091/14 "2008-08-29T12:27:07Z")
yeah, if a house is your goal than just save more money… ---
**Author:** ![nappy1380](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/nappy1380/32/7502_2.png) [@nappy1380](https://forums.speedlife.net/u/nappy1380)\ **Post date:** [August 29, 2008, 12:35pm UTC](https://forums.speedlife.net/t/q-about-student-loan-repayment/54091/15 "2008-08-29T12:35:30Z")
> [@walter](#): > > Interest and payments on Student Loans are extremely low. Add in that they are tax deductible and you will be better off not paying them off and saving that money for the house. Once your AGI exceeds the limit for the tax deduction it will make more sense to try and pay them off. Until then, throw the money in a savings or CD and hold on to it. > > Paying off the loans will not appreciably affect your credit. :bigclap: There is the golden answer. ---
**Author:** ![JustinH](https://avatars.discourse-cdn.com/v4/letter/j/9fc29f/32.png) [@JustinH](https://forums.speedlife.net/u/JustinH)\ **Post date:** [August 29, 2008, 6:19pm UTC](https://forums.speedlife.net/t/q-about-student-loan-repayment/54091/16 "2008-08-29T18:19:06Z")
> [@walter](#): > > Interest and payments on Student Loans are extremely low. Add in that they are tax deductible and you will be better off not paying them off and saving that money for the house. Once your AGI exceeds the limit for the tax deduction it will make more sense to try and pay them off. Until then, throw the money in a savings or CD and hold on to it. > > Paying off the loans will not appreciably affect your credit. Not private loans dude. Mine are around 9 percent. My federal loans are 2.5 percent, thats like free money. ---
**Author:** ![Penfold](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/penfold/32/5007_2.png) [@Penfold](https://forums.speedlife.net/u/Penfold)\ **Post date:** [August 29, 2008, 6:21pm UTC](https://forums.speedlife.net/t/q-about-student-loan-repayment/54091/17 "2008-08-29T18:21:02Z")
my first private loan is 6.5% and the second two are 8.5% all variable. The second was 11% for the first 6 months, but then went down to 8.5%. ---
**Author:** ![TurboTSi](https://avatars.discourse-cdn.com/v4/letter/t/22d042/32.png) [@TurboTSi](https://forums.speedlife.net/u/TurboTSi)\ **Post date:** [August 29, 2008, 8:49pm UTC](https://forums.speedlife.net/t/q-about-student-loan-repayment/54091/18 "2008-08-29T20:49:20Z")
How much money are we talking here? ---
**Author:** ![Willybeen](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/willybeen/32/7351_2.png) [@Willybeen](https://forums.speedlife.net/u/Willybeen)\ **Post date:** [August 29, 2008, 10:11pm UTC](https://forums.speedlife.net/t/q-about-student-loan-repayment/54091/19 "2008-08-29T22:11:11Z")
> [@walter](#): > > Interest and payments on Student Loans are extremely low. Add in that they are tax deductible and you will be better off not paying them off and saving that money for the house. Once your AGI exceeds the limit for the tax deduction it will make more sense to try and pay them off. Until then, throw the money in a savings or CD and hold on to it. > > Paying off the loans will not appreciably affect your credit. +1… Look at the interest paid on the first 10 years of your mortgage. :lol: ---
**Author:** ![theblue](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/theblue/32/5074_2.png) [@theblue](https://forums.speedlife.net/u/theblue)\ **Post date:** [August 30, 2008, 8:16am UTC](https://forums.speedlife.net/t/q-about-student-loan-repayment/54091/20 "2008-08-30T08:16:15Z")
while it’s true, the counterpoint is that the $100 a month in pocket from paying off one of the loans is worth a lot more than saving one year at the end of 30. [Next page](https://forums.speedlife.net/t/q-about-student-loan-repayment/54091.md?page=2)