Why Pay Off Student Loans Early
Student debt can really hold you back in life. It can weigh down your finances and significantly delay important purchases like a first home, new car, or much-needed vacation — and even keep you from saving for retirement. That’s why it’s so important to have a smart strategy to pay down student debt quickly.
The Secret To Paying Off Your Student Loans Early
Almost 20 million people in the United States attend college every year. And according to ASA.org, out of those people, just about 60 percent borrow money so they can afford the expenses of being a college student. With almost 37 million borrowers, that all adds up to nearly $1 TRILLION in total outstanding student loan debt in the United States. If you think that sounds absolutely crazy, we’re with you.
AutoPayPlus can help you save money while getting you out of debt as soon as possible. We have a game-changing option for repaying student debt: bi-weekly loan payments. Bi-weekly payments help students get out from under the heavy burden of student debt that can hold them back financially. The AutoPayPlus automated bi-weekly loan service can help graduates get peace of mind knowing their loans are being paid off on time each month, and ahead of schedule.
Here’s How Our Bi-weekly Student Loan Payments Work
How do students save money by using the AutoPayPlus program? If you’re making monthly payments on your student debt, every year you make 12 payments. When you make a biweekly loan payment, you make two payments every month for 12 months. That’s a total of 26 payments a year, or the equivalent of 13 monthly payments. By making that one extra payment a year, you can get out of debt years sooner.
For example, if your debt is $40,000 when you graduate and your interest rate is 4.5 percent, you would make monthly payments of $414.55 over about a 10 year period. However, if you switched to biweekly loan payments with AutoPayPlus, you would pay $207.28 twice a month and would shave the time down to payoff your loan to 9 years, 2 months. Plus you’re saving more than $430 on interest in the process!
A lot of students are held back financially from the time they graduate because of their student loan obligations. As a result, sometimes they can only afford to make the interest payments on their loans. However, if you’re paying biweekly, there’s less time for interest to build on your loan, and this lowers the total amount of interest you end up paying. It may even allow you to pay more than the minimum payment — which is very important when trying to pay down your debt. In addition, many people get biweekly paychecks, which makes the process that much easier because your income and loan payments are in sync.
We Know What You’re Thinking
You’re a recent graduate and perhaps just getting started with your first real job. You’re incredibly busy with work and going out with friends so you have little time stay on top of your student loan payments.
Or, maybe you’ve been a graduate for a while now and your student debt is still along for the ride. It feels like an annoying itch you just can’t get rid of. You’re tired of sitting down to make payments every month and would rather spend that time relaxing or doing something else you enjoy.
That’s where we come in. The AutoPayPlus service is automated to make those recurring payments for you. You don’t have to worry about a thing. When you enroll your loan, we take over the payments so that you can have peace of mind knowing that your obligation is met each month. Meanwhile, you’re saving money and time! So sit back and relax while we take care of that student debt. If you’re interested, you can learn more about biweekly loan payment on our website. To calculate how much you can save by paying off your student debt early, check out the AutoPayPlus Loan Savings Calculator.