Find Out Your Loan Payoff Date
If you’re wondering this, know you’re not alone! According to CNBC, women are 2x more likely than men to think it will them longer than the average 20 years to pay off their debt. Not only do you possess the power to know how long it will take you to pay back your loan, you also have the capability to speed things up in the process.
Identify Your Loan
First things first, you need to know if you have: A.) government loan or B.) private loan (or options A & B). Don’t worry, this isn’t a trick question like the ones on your exams in school. If you don’t know the difference, check out this quick guide here. Public loans are the most popular (and what I have experience with), so we’ll be focusing on those for the remainder of this blog post. If you do have a private loan, consult your source directly for information on your repayment plan.
If You Have a Public Loan
For those who do have public loans, you’ll be corresponding with a loan servicer (aka the ones that do the dirty work) on behalf of the Federal Government. Below is a pic with some of their names. These agencies collect your money. I know it’s difficult but be nice to them. You wouldn’t want a computer glitch to accidently delete your payment history!
Choose a Repayment Option
Your loan servicer will be in touch with the different repayment plan options you have. Once you have chosen one or opt for the default mode (do nothing!), they should tell you how much your minimum monthly payment will be, total number of payments, as well as your interest rate. This information combined will tell you the total you owe (with interest) and how many years it will take to pay it back.
Do Your Own Math
If you weren’t given the information by your loan servicer, or you want to double check the math; you can run your own calculations. Use the Repayment Estimator on the Federal Student Loan website and plug in your information.
If you don’t like what you see, you can be an overachiever like I was, and pay down your debt quicker than 20 years. All it takes is a little hard work, and I’m here to help!