Saving for College - Pay Student Loan Interest While Still in School
If at all possible, try to make interest payments on student loans even while the student is still in school. That way you or your child will only owe the principal, not interest plus the interest on that interest. In many cases the payment could be less than $50 per month, but the long-term savings can be useful. According to Sallie Mae, the average student could be able to reduce the repayment period by as much as 50% while saving almost 30% on the total cost of the loan. While it sounds counter-intuitive to pay while you are still borrowing, interest payments could generate dramatic overall savings on college loans.