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Knowledgebase Home | Favorites | Forum Welcome to our knowledge base. To find what you're after, use the search box below or choose a category to view listed articles. Search the Knowledgebase Browse by Category [Advanced Search] -- Select Category -- Credit MythbustersLoans    - Personal Loans    - Auto Loans    - Home Loans    - Student LoansCredit CardsCredit Reports and ScoresCredit Report CardIdentity TheftDebt HelpConsumer Law Guide    - College Cost Reduction and Access Act    - Credit Card Accountability Responsibility and Disclosure Act (CARD Act)     - Credit Repair Organizations Act (CROA)    - Equal Credit Opportunity Act (ECOA)    - Fair and Accurate Credit Transactions Act (FACTA)    - Fair Credit Reporting Act (FCRA)    - Fair Debt Collection Practices Act    - Overdraft Rules for Debit and ATM CardsCustomer Support The article has been updated successfully. Knowledgebase Home > Loans > Student Loans Is it a good idea to make extra payments on my student loans? Article Details Last Updated 1st of May, 2009 Would you like to... Discuss Print this page Email this page Post a comment Subscribe me Add to favorites Remove Highlighting Edit this Article Quick Edit Export to PDF User Opinions (4 votes) 50% 50% How would you rate this answer? Helpful Not helpful Help us improve. Why was this unhelpful? Thank you for rating this answer. As a general rule, no, making extra payments on your student loans won’t necessarily help you much, unless you are the type of person that wants to pay off all your debts as soon as possible. However, there are some variables to consider. First, look at the interest you are paying on your student loan(s). If you consolidated your loans during your grace period, you probably locked in your interest rate at a reasonable, fixed rate. If that is the case, your student loan debt is not necessarily a bad thing. If you manage it responsibly by paying it on time each month, it will actually help your credit scores for two reasons: first, because of the positive payment history you will show, and second, because your student loan debt adds to the diversity of your accounts, which is one of the five categories used to calculate your credit scores. Also, assuming you have a reasonably low interest rate on your student debt, you will likely want to pay off any other debt you owe – credit card debt, car loan payments, etc. – before you start making extra payments on your student loans. Chances are good that you are paying a much higher interest rate on your other debt than you are on your student loans, so you will save a lot on interest by paying the other debt off first. If you have no debt, think about how you can best utilize your money. If you just graduated, you’re probably young, and now is the time to use that entrepreneurial spirit. Do you want to start your own business? Go into a business with a friend? Think about how you want to spend your money. If you can make more on your money than what you are paying in interest for your student loans – by putting it in a bank CD or other investments like real estate, stocks, or mutual funds – you may want to consider those options too. Related Articles In regards to student loans, what rights does the College Cost Reduction and Access Act give me? What are private student loans? How can I get out of student loan debt? How can I find out about college student credit cards? I've heard that there's different "types" of consumers; what are they? Continue