Make extra payments and recalculate your monthly payment. To further maximize savings a person should make additional payments on their student loans. After making the $13,000 payment to my federal loan with outrageously high interest rates I called my loan servicer and asked them to recalculate my monthly payment. My loan servicer will recalculate my monthly payment after making a large payment, but you should check with your servicer to see how easy it is. In my case, it’s simply a quick phone call.
Thus, after making approximately $13,000 in extra payments my monthly payment was reduced by about $153 a month! $153 a month for the next 120 months (120 months is the standard repayment term)! Are you serious? $153 x 120= $18,360. Pay $13,000 now to save $5,360 over the course of the loan! This savings is possible because I am utilizing the cash advance to make extra payments on my loan. If you are only able to trade in your high interest student loan for a low interest cash advance you will not realize these additional savings. You will only realize the $617.50. Why? Because you are unable to ask your servicer to recalculate your monthly student loan payment. Recalculating your monthly payment requires an individual to continue making monthly student loan payments in addition to paying off the cash advance.
Thus, after making approximately $13,000 in extra payments my monthly payment was reduced by about $153 a month! $153 a month for the next 120 months (120 months is the standard repayment term)! Are you serious? $153 x 120= $18,360. Pay $13,000 now to save $5,360 over the course of the loan! This savings is possible because I am utilizing the cash advance to make extra payments on my loan. If you are only able to trade in your high interest student loan for a low interest cash advance you will not realize these additional savings. You will only realize the $617.50. Why? Because you are unable to ask your servicer to recalculate your monthly student loan payment. Recalculating your monthly payment requires an individual to continue making monthly student loan payments in addition to paying off the cash advance.
