Can You Really Pay Off Student Loans While Still in School?
Paying off student loans while you’re still in school may seem like a stretch. After all, juggling tuition, textbooks, and the daily expenses of college life can already be a handful. But the short answer is yes—you can pay off your student loans while you’re still studying. And doing so could be a smart way to reduce your debt burden in the future.
Federal Student Loans: Deferment and Interest Payments
If you have federal student loans, you’re generally not required to make payments while you’re in school, as your loans are deferred until after you graduate. However, it’s important to note that interest on certain federal loans (like unsubsidized loans) will continue to accrue during your time in school. While you don’t have to make payments, paying off the interest now can save you money in the long run by preventing it from being added to your loan balance.
Private Student Loans: Check with Your Lender
Private loans work differently. Depending on the terms of your loan, you may have options to make interest-only payments or even defer payments while in school. Some private lenders might allow you to reduce the overall loan balance by making partial payments on the interest, or they might offer deferment. Be sure to contact your lender to understand your options and whether it makes sense to pay while you’re in school.
How Paying Off Loans Now Can Help You Later
While it’s tempting to put off payments until after graduation, paying off even a small portion of your loans during school can make a big difference. Reducing the principal balance means you’ll be charged less interest over time, and your monthly payments after graduation will be smaller. Even setting aside a small amount each month can help you pay down interest and stay on top of your loan balance before it spirals out of control.
How Life Planner Helps You Stay on Track
Keeping track of your loans while in school can get complicated, but Life Planner makes it easy. With Life Planner’s loan tracking features, you can monitor your loan balance, interest accrual, and payment schedule all in one place. You can also set up budgeting tools and savings goals to help you manage your finances more effectively during school. Life Planner is a great companion to keep you on track with your loan payments and help you visualize your financial future.
Take Control of Your Debt Now
Paying off student loans while still in school is a proactive choice that can save you money and stress down the road. With a little effort, you can reduce your debt and set yourself up for financial success after graduation. Whether you're planning to pay off interest or make a dent in your principal, tracking your loans and staying on top of your budget is essential.
If you’re ready to take control of your student loans and your financial future, download the Life Planner app today! Life Planner offers loan tracking, budgeting tools, and even savings goal features to help you manage your finances while in school and beyond. Don’t wait—start taking charge of your financial journey now!
Download Life Planner from Google Play or Download Life Planner from the App Store.