In the UK, student loans are repaid as a percentage of earnings, and only when your annual income is over a certain threshold. How long will it take me to pay off my student loan: UK? British students have a more relaxed, means-tested approach, whilst US students face a harsher system and therefore Whether you really need to concern yourself with overpaying to shrink the debt is dependent on where you studied. Ultimately though, the general rule remains the same: the more you pay towards it, the faster the debt will shrink. The value of your student debt depends on a number of factors: where you studied, when you studied, and how long for. How long will it take me to pay off my student loan?
College loan payoff calculator mobile app how to#
So read on to learn how to shorten and shrink your loan. The following guide focuses particularly on student loans, but the tips and advice can apply to all types of loans.
Play around with our Loan Payoff Calculator, above, to see how overpayments can shorten the length of your loan. Loan a whole five years earlier, and only pay $8,855.67 interest. Your monthly payment would be $295.88, meaning that your total interest comes to $13,258.40.īut paying an extra $100 a month could mean you repay your You borrow $40,000 with an interest rate of 4%.
Important part: the faster you pay back the principal, the lower the interest amount will be.Į.g. When you repay a loan, you pay back the principal or capital (the original sum borrowed from the bank) as well as interest (the charges applied by the bank for their profit, which grow over time). How long will it take to pay off my loan?