So, I did figure out a way to actually start actively paying toward my principal, versus just the interest:
Every student loan payment goes directly to the interest that my account accrues every month. I accrue approximately $198 in interest, monthly. If I make a $300 payment, $198 goes to interest and the remaining $102 goes to my principal.
My actual loan is comprised of four separate loans (1 is subsidized and 3 are un-subsidized) and each payment splits into a payment for each loan…
Which results in a few dollas goin’ heerre ..and a few quarters goin heeere….And my principal goin’ nowwhheerree.
But my interest is steadying getting higher. Nah, fam. No bueno. And since I have no plans of spending the rest of my life paying on this student loan or having it in permanent deferment-
I discovered that I could actually customize where my “excess” payment could go (see above my example of the $300 payment).
So, instead of paying just a portion of each loan’s respective principal, I customized it so that ALL of my excess payment goes to the loan with the smallest balance. So, now my $102 dollar payment all goes to just one loan, whilst also paying the $198 interest payments or all four loans. The goal is to eventually pay all of the principal for the smallest loan and then move to the next smallest loans, et cetera, et cetera…That way I will eventually not have to pay the interest for that loan in the future because it will be eliminated. Its kinda like the snowball method.
My plan is to use my part time paychecks strictly for student loan annihilation. Still have a long way to go, but I’m eating the elephant…one bite, at a time!
What hacks or shortcuts are you using to help with your debt repayment? What is working or not working for you? Let me know in the comments!