Business Analyst at McKinsey & Company
New York, New York
If you have the means to begin paying down your loans this might make sense for you if the loans are accruing interest every year - the sooner you start paying them down, the less interest will accrue. That said, as a student the opportunity cost of these payments can be high. I would advise considering strongly whether there are other ways you would like to direct that money as a student (study abroad?) that could give you experiences you won't get a second chance to go back and do.
For Stafford subsidized loans (ones from the government that aren't accruing interest) it's probably in your best interest to not start paying those down until you graduate and they begin to accrue interest. (At the very least, de-prioritize these loans for repayment compared to interest-accruing ones)
Last updated Dec 06 '17 at 11:42