Why did my financial aid advisor say this?

caliotter3 · Apr 27, 2015

Paying off the principal first, lowers the amount of interest paid over the life of the loan because there is less "loan" on which to charge interest. Yes, you want to submit any extra payments or early payments to principal first. It is wise.

mirandaaa · Apr 28, 2015

Usually if you're still enrolled in school, making payments aren't required but depending on the loan, your interest may start accruing immediately or it may not begin until after you finish school.

If you want to make payments during school, it is wise to make sure it's going to the principal amount (which is the amount that does not include any interest) so this means you're paying on the actual loan itself, not the interest. This is good because it decreases the amount of interest you'll accrue/pay in the long run :)

Nursing pursuit · Apr 28, 2015

Thanks Mirandaaa CNA :) also, if I start paying it off now, would that make me legible to take out more loans in case I'm close to maxing out?

SunkissedRN2b · Apr 28, 2015

You have to be sure to let them know each payment you make over your regular payment should be applied directly to the principal.

mirandaaa · Apr 28, 2015

To be truthful, I've never heard of anyone maxing out on school loans but it is best to pay as you go if you're able just so it's less to pay back later and less interest will accrue.

JustBeachyNurse, LPN · Apr 28, 2015

Many people max out on school loans. Last I read on the government website paying down does not increase the amount you can borrow. Pay down some but save some and pay cash for the rest. Many schools offer discounts of you pay tax plus you may be eligible for a tax credit.