Title: Should I pay off my student loans early?
Headings: Should I pay off my student loans early?
Should I pay off my student loans early?
Key takeaways
Should I pay off my student loans early?
Pros
Cons
Factors to consider
Other debt
Retirement savings
Homeownership
Lifestyle expenses
Emergency expenses
How to pay off student loans quickly
Pay more than the minimum
Make an extra loan payment each month
Put down a lump-sum payment
Refinance for a lower rate
Next steps
Learn more:

Content: Because your student loan, like most other debt, accrues interest when you carry a balance, it's cheaper if you pay off the loan earlier. It gives the debt less time to accumulate interest, and that means you'll pay less money in the long run. Get a head start on other financial goals: With one less monthly payment to worry about, you'll be able to use the funds you would apply to your student loans for other purposes, like saving for a house or retirement, paying off a mortgage or taking a vacation. Improve debt-to-income ratio: Getting rid of a significant monthly payment will improve your debt-to-income ratio, a measurement that most lenders evaluate when determining your qualifications for credit. With an improved debt-to-income ratio, you may be eligible for better interest rates on credit cards, mortgages and more. Cons
Higher monthly payments: Especially if you're early in your career or not making much money, you may struggle to pay off your student loans early. Paying off your loans early means making additional payments or larger payments, so you should only increase your student loan payments if you can afford to do so without making undue sacrifices.