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Why I Paid off My Student Loans

Holly Lipovits

Posted on October 14, 2020 14:53

4 users

While federal student loans are in forbearance, I decided to tackle a couple of loans and pay them off. Boy, I sure felt a rush of relief!

Ever since President Trump has extended the relief for student loans to December 31, I felt myself sighing as I looked at my loan account. While I am lucky to not have accrued many loans throughout my college career, it still made me ache to see the numbers rise every term.

During this time of relief, many students may feel grateful and take time off from paying down their loans in order to continue saving. Others may disagree and continue making payments to get ahead of the game. There is no interest being added on to the loans right now so that gives students an advantage of all their payments being put towards the principal balance.

To get a little personal here, I had $7,807 in both subsidized and unsubsidized loans. Studentaid.gov states that subsidized loans are loans that do not accrue interest during the school year and begin accruing interest 6 months after school. Unsubsidized loans accrue interest as soon as the loan is disbursed. Knowing that unsubsidized loans accrue interest, I paid the only two loans of that type off. I am now down to $4,973 and feel pretty good about that.

Whether you want to continue building your savings or make extra payments, it is entirely your choice. Do whatever makes you feel better. I'm glad I paid a chunk of loans off and have less to worry about down the road. I will be able to get back to adding to my savings without a huge debt sitting on my shoulder. I paid off some of my loans to ease the stress of having to pay them off in the future, or for months while they accrue interest.

Holly Lipovits

Posted on October 14, 2020 14:53

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Source: WashPost

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