If you’ve been following my debt journey for a while, you will know that student loans make up most of my debt. If I could go back in time and change some things I definitely would. I’m at the point of my life where I can’t even worry about the past anymore. If you’re a recent college graduate of you still have a lot of loans, I want you to consider seriously prepaying your student loans. Prepaying on your student loans means to put extra money towards your monthly payments. It’s something that I wish I would have done. I want to share with you four reasons why you should consider prepaying your student loans.
Eliminate the Loans Faster
The first reason why you should prepay your student loans is because you will help you to eliminate them faster. No one wants to have student loan debt following them for too many years. I will be the first person to tell you that it’s not fun having that payment every month. Seeing the numbers go down slowly isn’t exciting either. If you can afford to prepay them, I’d do it as soon as possible.
Save More Money
If you prepay on your student loans, you will save money. The faster your loans are paid, the less interest that you will see. My interest rates are decent, but since my loans are high, I’m still charged about $40 -$50 worth of it each month.
Using the prepayment calculator on this page, I was able to figure out that I would save $5944 amount of money if I prepaid my loans in 6 years. This is tons of money that could go a long way in your day-to-day spending, monthly budget and retirement fund.
Be Able to Do More
If you prepay your student loans, you will be able to do much more with your money. You will be able to save more, travel more or even purchase a house. Having the option to do more with your money is much better than spending $200 – $300 on student loans for years.
If you have a significant amount of student loan debt, it can be stressful for you. That stress could deteriorate your health if you let it. If you’re fresh out of college, or you’ve been out or a while, now is the time for you to come up with a plan to prepay your loans. Get a second job, start a side hustle, or cancel your cable. Whatever you need to do, just do it. The day that you no longer have to deal with student loans will be excellent. From what I hear a huge burden will be lifted. I’m getting excited just thinking about it. I can’t wait for the days where I won’t have to stress about student loans anymore.
You should prepay your loans because it will help you eliminate them faster, you will save more money, you’ll be able to do more with money and you will have less stress.
Do you prepay on your student loans?