<prompt> Human: Right now I have about 28k in student loans. Interest rates vary from 3.35 to 6.9. If I set up auto monthly payments through the servicer I get a 0.25 reduction in interest rate. However, interest compounds daily and I thought about paying half of a payment out of each check 2 per month. This would eliminate my 0.25 reduction because its not on auto draft. But would reduce the interest that acrues between payments. Which would be better?  <response>: Set up autopay to take care of the monthly minimums, and then make a manual payment whenever you have the money to do so. You should be putting all the money you can towards the highest interest rate first anyway, so this is the best option.Edit: However, interest compounds dailyJust noticed this part and wanted to make a clarification on terms. Interest does not compound daily. It accrues daily.Compounding means that interest is added to the principal balance, and subsequent interest is calculated off of the new total balance. This only happens when your student loan exits a period of deferment, such as the end of your in-school deferment grace period.Accrual means that the interest is calculated off of the principal balance, but then kept in its own category. You still need to pay off accrued interest before you can touch the principal balance, but that interest balance is not also accumulating interest on itself. 