Originally Posted by E175 Driver (Post 2245977)

60K first year pay, and 12K pay cut second yr pay.

Do your homework fellas

Originally Posted by NMuir (Post 2244604)

Except that Sallie Mae applies extra payments to interest, not principle :mad:

Originally Posted by Pedro4President (Post 2245140)

Pretty sure all loans are interest first then principal. That's pretty standard across the board isn't it?

Originally Posted by E175 Driver (Post 2245977)

60K first year pay, and 12K pay cut second yr pay.

Do your homework fellas

Originally Posted by TallFlyer (Post 2245997)

Meh. Learn how to not live paycheck to paycheck and move on with your life.

Your perspective could just as easily be "48K first and second year, and 12K extra thrown at my debt."

Originally Posted by TallFlyer (Post 2245994)

If you know how loans work that makes zero sense. If you look on Sallie Mae's website they'll tell you that interest accrues daily. So unless they're banking your extra payments and applying it towards later, not yet accrued interest (spoiler alert: they're not), any additional amount above the interest portion of you payment gets applied to principal.

https://www.salliemae.com/student-lo...ng-off-a-loan/
Sallie Mae: How To Apply Payment To Principal - Graduating in Debt


Google "Amortization Schedule." Bottom line, your payment is allocated to varying amounts of principal and interest across the life of the loan. You do pay more in interest earlier in the life of the loan, but anything extra above your calculated payment should be applied to principal.

Originally Posted by PSA help (Post 2244537)

Paying off high interest loans will save you a TON of money in the long run!

Originally Posted by BizJet (Post 2245185)

That might be why my parents told me to bank the bonus, in savings, and just do my monthly payments out of it. I need to call them and find out what they do.

Originally Posted by Bravix (Post 2246123)

But student loan interest is tax deductible up to $2500? If you're incurring more than $2500 a year in interest, then yeah, pay it down. But otherwise, you get back at tax season (assuming your federal withholding was >=$2500). Though if you've got nothing to invest the extra cash in, loans aren't bad I suppose.




Depends. Do you have multiple loans? Or did you have them all consolidated?

If you have multiples, you can just start paying down the interest and the principal on one, while just making the minimum on others (if decreasing principal is your goal).