Student Loan Repayment Simulator
Visualize different repayment strategies and see exactly how extra payments, bi-weekly schedules, and increased monthly amounts can accelerate your journey to debt freedom.
Configure Your Loan & Strategies
Loan Details
Test Strategies
Add extra to each monthly payment
Loan Balance Over Time
| Strategy | Monthly Payment | Payoff Time | Total Interest | Total Paid | Savings |
|---|---|---|---|---|---|
| Standard Repayment | $325.58 | 10y 0m | $9069.46 | $39069.46 | Baseline |
| Bi-Weekly Payments | $352.71 | 15y 0m | $8379.11 | $38379.11 | $690.35 -60 months faster |
Bi-Weekly Payments
Understanding Repayment Strategies
The way you choose to repay your student loans can have a dramatic impact on how much interest you pay and how quickly you become debt-free. Small changes in your repayment strategy can save you thousands of dollars and years of payments.
Our repayment simulator helps you visualize the real impact of different payment approaches, making it easier to choose the strategy that best fits your financial goals and budget.
Popular Repayment Strategies
Standard Repayment
Make the minimum required payment each month for the full loan term. This is the baseline strategy that most borrowers start with.
Extra Monthly Payment
Add a fixed extra amount to your monthly payment. Even $50-$100 extra per month can significantly reduce your repayment timeline and total interest.
Bi-Weekly Payments
Pay half your monthly payment every two weeks. This results in 26 half-payments (13 full payments) per year instead of 12, accelerating payoff without feeling like much extra.
Debt Avalanche
Make minimum payments on all loans, then put any extra money toward the loan with the highest interest rate. This mathematically minimizes total interest paid.
Debt Snowball
Pay off the smallest loan first for psychological wins, then roll that payment into the next smallest loan. Creates momentum and motivation.
Annual Lump Sum
Make regular monthly payments plus one large payment per year (from tax refund, bonus, etc.). Reduces principal significantly while maintaining manageable monthly budget.
How Extra Payments Impact Your Loan
Understanding the math behind extra payments can motivate you to pay more when possible. Here's what happens when you add extra payments:
Example: $30,000 Loan at 6% Interest
Savings from $200 extra per month: $5,469 in interest saved and 4.5 years faster payoff!
Step-by-Step: Creating Your Repayment Strategy
Calculate Your Current Position
Use our simulator to input your current loan details: principal balance, interest rate, and remaining term. This establishes your baseline scenario - what happens if you just make minimum payments.
Determine Your Extra Payment Capacity
Review your budget to find how much extra you can realistically afford each month. Even $25-$50 can make a significant difference. Be honest about what's sustainable long-term.
Compare Different Strategies
Use the simulator to test various approaches: extra monthly payments, bi-weekly payments, or annual lump sums. Compare the visual timelines and total interest to see which strategy provides the best results for your situation.
Implement and Automate
Once you've chosen your strategy, set up automatic payments with your loan servicer. Automation ensures consistency and removes the temptation to skip extra payments. Most servicers allow you to specify that extra payments go toward principal.
Review and Adjust Quarterly
Every 3-6 months, revisit your strategy. If you get a raise, bonus, or reduce other expenses, consider increasing your extra payments. Use the simulator to see how these adjustments can further accelerate your payoff timeline.
Advanced Repayment Tactics
Round Up Your Payments
If your monthly payment is $287, round it up to $300. This simple psychological trick makes extra payments feel effortless while still accelerating your payoff. Over time, these small amounts add up significantly.
Apply Windfalls Strategically
Put unexpected money (tax refunds, bonuses, gifts, raises) directly toward your loan principal. A $2,000 lump sum payment on a $30,000 loan at 6% can save you over $500 in interest and shorten your loan by months.
Split Your Payment in Half
Instead of paying $400 once a month, pay $200 every two weeks. This reduces your average daily balance and the interest that accrues on it. Plus, you'll make 13 full payments per year instead of 12.
Refinance to Lower Rates
If you have good credit and stable income, refinancing to a lower interest rate can save thousands. Use the simulator to compare your current loan with a potential refinanced loan to see if it makes sense (note: refinancing federal loans means losing federal protections).
Use the "Debt Snowball" Momentum
If you have multiple loans, pay minimums on all except your target loan (highest interest or smallest balance). Once you pay off one loan, roll that entire payment amount into the next loan. Your payment stays the same, but you accelerate payoff exponentially.
Recertify Income-Driven Plans Annually
If you're on an income-driven repayment plan, recertify your income every year as required. If your income increases, consider switching to a standard plan or making extra payments to reduce the amount eligible for forgiveness (which may be taxable).
Common Mistakes to Avoid
❌Not Specifying "Principal Only" for Extra Payments
When making extra payments, always specify that the extra amount should go toward principal, not future payments. Otherwise, your servicer might just apply it to next month's payment, which doesn't reduce your interest as effectively.
❌Sacrificing Emergency Savings
Don't drain your emergency fund to make extra loan payments. A financial emergency without savings will force you into high-interest debt. Aim for 3-6 months of expenses before aggressively attacking student loans.
❌Ignoring Higher-Interest Debt
If you have credit card debt at 18-25% interest, pay that off before making extra student loan payments at 5-7% interest. Always tackle the highest-interest debt first for maximum financial benefit.
❌Missing Out on Employer 401(k) Match
Always contribute enough to get your full employer 401(k) match before making extra loan payments. The match is free money and an instant 100% return - you can't beat that with loan payoff.
❌Choosing an Unsustainable Strategy
Being too aggressive with extra payments can lead to burnout and missed payments. Choose a sustainable strategy that fits your lifestyle and budget, even if it's slower. Consistency beats intensity.
Frequently Asked Questions
How much extra should I pay on my student loans?
It depends on your budget and financial goals. Even an extra $25-$50 per month can make a significant difference. Use our simulator to see how different extra payment amounts affect your timeline and total interest. Start with what's comfortable and increase as your income grows.
Is it better to pay extra every month or make lump sum payments?
From a pure math perspective, paying extra consistently every month is slightly better because it reduces your principal balance earlier, minimizing interest accrual. However, lump sum payments (like tax refunds) can also be highly effective. The best approach is the one you'll actually stick with.
Should I pay off student loans or invest?
This depends on your loan interest rate and risk tolerance. As a general rule: pay off loans with interest rates above 6-7% first, then invest. If your loans are below 5%, consider splitting between extra payments and investing. Always get your full employer 401(k) match first.
Can I change my repayment strategy later?
Yes! You can adjust your extra payment amounts or strategy at any time. Your loan servicer doesn't lock you into a specific extra payment amount - you simply pay more when you can afford it. This flexibility makes it low-risk to try different approaches.
Will making extra payments affect my credit score?
Making extra payments won't hurt your credit score and may actually help it slightly by reducing your overall debt. However, paying off loans completely might cause a small temporary dip as you lose a credit account, but this recovers quickly and the debt freedom is worth it.
Ready to Optimize Your Student Loan Strategy?
Explore our other calculators and resources to take complete control of your student debt.