Anonymous
Anonymous asked in Business & FinancePersonal Finance · 1 decade ago

Student Loans?

I just read on here that with mortgages, if you pay more often (eg. two $600 payments per month vs. one $1200 payment per month), you decrease your interest. How does this work, and does it work the same for student loans?

Update:

I'm in the US, and these are "public" student loans... through the state student loan corporation.

6 Answers

Relevance
  • Anonymous
    1 decade ago
    Best Answer

    Mortgages can be paid monthly, bi-weekly (once every two weeks, so example: every second Friday), semi monthly (1st and the 15th of each month), or weekly. If you opt for the biweekly option, this means there are some months that you make three payments due to the way the calendar falls. So, in the end, you end up making the equivalent of one extra monthly payment per year. What this means is that on an average mortgage of 25 years, it actually knocks the time down to 21 years and 4 months. On a loan, you don't have any penalties (usually) to pay extra on it, or pay it out early completely. You WILL save yourself interest in the long run, as it will be calculated on a lesser amount each month than it would have if you had not paid additonal onto the principle. The rate of interest the loan comes at, however, will not be different.

  • 1 decade ago

    .:Nahira:.

    Just like the answerer " B " told you exactly that is true how

    ever if you need to know more about Student Loans & how

    this work step by step how to pay decrease the interest and

    so then go to Only Best Deals , I am Sorry I cant post the site

    link here so open Yahoo & type :

    Only Best Deals

    now the first line in search results a site called Only Best

    Deals open it and check the right green titles about Student

    Loans if You didnt find it , Use the Top Search Box which

    must lead you directly to these posts about Student Loans

    and how it works in easy steps from the beginning ,

    well .:Nahira:. I hope You The Best ,

    GOOD LUCK .

  • Anonymous
    4 years ago

    I think ya do. Student loans are the worst. I'm graduated and more then half my pay goes to stupid student loan payments. Interest is a Beeoch! Good luck to you.

  • Anonymous
    1 decade ago

    Federal loan interest is 6,8%, fixed. I found interesting information about your answer, college loans, FEDERAL LOANS, scholarships, here. http://all-student-loan-consolidation.blogspot.com...

  • How do you think about the answers? You can sign in to vote the answer.
  • 1 decade ago

    It depends where in the world you are. What country are you getting your loan from?

  • 1 decade ago

    I have no idea about it..

Still have questions? Get your answers by asking now.