Student Loan Strategy

Same loan, three different payoff strategies, three very different lifetime costs. Don't pay back $50K twice.

Total loan balance ($)

Interest rate (APR %)

Federal undergraduate rates have ranged 4-7%; private and grad rates run higher.

Standard repayment (years)

Aggressive monthly payment ($)

What you could pay if you kept your post-college rent low for a few years.

Compare three paths

Strategy	Monthly	Years	Total paid	Interest

Aggressive payoff saves

$8,400

in interest vs. the standard 10-year plan. That's money in your pocket.

Refinancing — when it makes sense If your rate is > 7% and you have stable income + decent credit (700+), a private refinance can drop it 1-3 points. But: you lose federal protections (forbearance, income-driven repayment, loan forgiveness). Don't refi federal loans unless you're certain you don't need those safety nets.

The order of operations 1. Capture your 401(k) match (free money). 2. Pay above-minimum on student loans if APR > 6%. 3. Max your Roth IRA. 4. Pay loans down faster only after the Roth is maxed and APR is > 5%. Below 5% APR, invest the difference instead — it'll likely earn more than the loan costs.