Greetings,

I have been struggling to find the best method for paying off my student loan debt. I have 10 loans that are currently being serviced as a single payment. The loans are all fixed at a 6.55% interest. The loans were set for a 25 year repayment period where any remaining balance at the end of the term will be forgiven. The remaining term is 271 months. The balances and payments are listed below:

Loan Balance Monthly Payment

Sub loan 4 $633.65 $3.59

Sub loan 3 $1,251.35 $7.08

Sub loan 1 $1,970.25 $11.16

Sub loan 5 $3,003.25 $17.00

Sub loan 10 $5,954.61 $33.71

Sub loan 9 $7,064.11 $39.98

Sub loan 2 $7,257.77 $41.09

Sub loan 8 $7,271.38 $41.16

Sub loan 7 $7,553.42 $42.75

Sub loan 6 $24,356.94 $137.87

Total $66,316.73 $375.39

I currently have $10,000 that I will be paying onto this debt. Then an additional $1,000 per month will be going to principal reduction, plus whatever portion of the current monthly payment is eliminated as I pay off specific loans.

What is the right approach? I am having a difficult time finding an online calculator that will work with the loan setup since they all seem to be assuming a fully amortized loan term. Because they are all the same interest rate, and also the same terms, I am struggling to be able to quantify the best approach.

My initial thoughts:

Use the $10,000 and my first $1,000 in principal reduction to pay off sub loans 4, 3, 1, and 10. This will eliminate $61.81 in monthly payment which will then be added to the principal reduction payments. Then I would focus the principal reduction on the loans starting with the smallest and adding the monthly payment of that loan to principal reduction as the loan is eliminated.

But,

should I be paying off the largest loan first? Or should I have my additional principal payments distributed among all of the loans, thereby increasing the portion of each regular payment that goes to principal?

Thanks for your help,

Steve