Making extra or larger monthly payments toward your student loans can help you pay off the debt faster and save money in the process. Use our payoff calculator to see how much sooner you'll be be debt-free with extra payments. The amortization schedule shows the total interest cost.
Why use a student loan payoff calculator
The higher your extra payments — and the more you put toward your principal balance — the less interest you’ll pay.
For example, if you borrow $20,000 in student loans with an interest rate of 5%, then your monthly payment on a standard 10-year term would be $212. By the end of the loan, you'll have paid $5,456 in interest.
But if you paid an extra $100 a month toward that loan, you can pay it off nearly four years sooner and save $2,000 in interest.
How to pay off student loans faster
Here are three ways to pay off your student loans faster.
1. Apply extra student loan payments toward the principal
You may need to contact your lender or servicer and ask them to apply your extra payments toward the principal rather than next month’s interest payment. Your lender may have a specific way to make the request:
Online. You'll want to select "principal payment" when you make a payment in the online portal.
In writing. Some lenders require a written request for extra payments to go toward the principal.
On the phone. If you make a payment by phone, you should ask verbally.
On your check. If you send a check by mail, add “apply to principal” to the memo line.
2. Make larger, one-time payments
If you can’t make an extra student loan payment every month, look for opportunities throughout the year to increase your payment or make larger, one-time payments. As noted before, you'll need to let the lender know this payment should be applied to the principal. Here are a few examples of opportunities to make a larger principal payment:
Windfall money. Windfall money can come in the form of a gift, job bonus, legal settlement or inheritance.
Tax refund. When you file your tax return each year, you might get a federal or state tax refund.
Pay raises. If you get a raise, you can apply the additional money each paycheck toward your student loans.
3. Enroll in autopay or make bi-weekly payments
If you have a federal student loan, you’ll get a 0.25% reduced interest rate for enrolling in autopay. This means your monthly student loan payment will automatically be debited from your bank account. Many private lenders also offer an autopay discount that may help lower your interest rate.
In addition to autopay discounts, you can also expedite student loan payoff by making more than one payment per month. Bi-weekly payments take your full monthly payment and divide it into two payments per month. By the end of the year, you’ll have made an extra payment using this method. It's a simple way to trick yourself into making one full extra payment each year.
Trade-offs to extra student loan payments
Paying off your student loans faster can lift a huge burden, but also look at your overall finances to make sure you're not skimping on higher priorities. Higher-interest debt, like credit card debt, will cost more in the long run. You may want to prioritize extra payments toward this debt before aggressively tackling your student loans.
Similarly, if you haven't been able to build an emergency fund or your retirement savings, allocate money to these before your student loans.
More NerdWallet student loan calculators
Student loan payment calculator. Estimate your payment amount and total cost for a single student loan or multiple student loans. You can include undergraduate and graduate loans, as well as federal and private loans.
Student loan refinance calculator. Compare your current loan payment or multiple payments with a refinanced student loan.
Student loan consolidation calculator. See how consolidating your federal student loans will change your payment, interest rate and repayment term.
Income-driven repayment calculator. Use this calculator to figure the monthly payment amount for a federal student loan, using either the new Repayment Assistance Plan (RAP) or older income-driven repayment plans.
Parent PLUS loan calculator. Estimate your monthly payment and total cost over multiple years of borrowing with a parent PLUS loan.
