Finance
What Happens If You Pay Off $50K in Student Loans Aggressively?
The Answer
5 years saved, $11,000 saved
The Full Picture
With $50,000 in student loans at 6.5% interest, minimum payments of $562/month take 10 years and cost $17,440 in interest. Paying $1,000/month cuts payoff to 5 years and reduces interest to $6,220 — saving $11,220 and half a decade of debt.
By the Numbers
Minimum payment payoff10 years, $17,440 interest
Aggressive ($1,000/mo) payoff5 years, $6,220 interest
Interest saved$11,220
Change the numbers
These numbers are just a scenario. Use our Loan Calculator to see what your specific situation looks like.