In 2008, when I was in the process of paying of my student loans I questioned the decision and the process. Paying $858/month when I was living in Silicon Valley, working at temporary jobs that could end at any time and having a high deductible health insurance plan, it seemed easier to pay the minimum and start saving for health emergencies or retirement. Then I sat down with a calculator and realized how much I can save by accelerating payments.
According to money.com calculator, paying the minimum in student loans (about $858) will take 26 yrs, 9 mo and I would pay— $153,057 in interest (WTF!!!)
If I continued to pay $1358/mo (min plus 500 addtl) the loan would be repaid in 9 yrs 1 month and $453,112 will be paid in interest.
If I doubled the minimum, 7 yrs 9 mo and $36,802 will be paid in interest
To pay off in 5 years, I would need to pay $2420.36/mo and interest will be $22,979.
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