Benefits of Paying off Student Loans Early
Are there benefits to paying off student loans early? Weighing the pros and cons of paying off student loans early can be difficult. On one hand, you like to use your disposable income for fun and enjoyment, but on the other hand, you can’t imagine staying in debt longer than you have to. You might be thinking, “Should I pay off my student loans or buy a house?” You might also wonder, “Should I pay off my student loans or invest?” But the answer for everyone will be much different.
The answer really depends on your risk tolerance. While it’s smart to invest sooner than later because time equals money, carrying debt while your future is uncertain can be too risky for some people. For example, you may not know if you will lose your job or have some other change in your income situation that could prevent you from making your debt payments. If that bothers you, then holding on to debt may not be the best choice for you.
How Early Can You Pay Off Student Loans?
You can pay your student loans in full while you are in school to save on interest and there are no penalties for doing so. But even if you don’t pay them off while you are still in school, there are benefits to paying them off early shortly after graduation. For one, you will pay less interest since the life of your loan is shorter. Also, your credit score can improve as a result of getting rid of some of that debt. Perhaps the best thing about paying off student loans early is having additional income to buy a home, have fun, invest or anything else you’d like!
Calculate How Fast You Can Pay off Student Loans
If you are still on the fence on whether or not you what to pay off your student loans early, check out this calculator that can show you how adding just a few more dollars to your payment can help you pay your loans off faster and earlier than you originally anticipated. This extra payment calculator can come in handy to motivate you and keep you committed to paying off your student loans early.
How Chonce Maddox Paid off Her Student Loans Early
Finally, if you still aren’t convinced about paying off your student loans, take a listen to this interview with Chonce Maddox of My Debt Epiphany.
She was able to pay off all her student loans in less than 3 years. The benefits of paying off her loans early include peace of mind, more disposable income, and more options in life in general. In this interview, we discuss:
- Why Chonce wanted to pay off her student loans early
- How she adjusted her budget to make room for more debt payments (plus what she cut out and what she kept!)
- The side hustles she started: like blogging, freelance writing and being a brand ambassador and virtual assistant to add more income to the mix
- How Chonce changed her money mindset to support her debt repayment goals.
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