Hello everyone,
I am a professional student that has almost $58k in loans part way through my second year of school. I only take out loans for tuition and mandatory fees; after that I receive $1,200 per month for rent and living expenses. I'm projecting my loan total to be a bit over $200k, not including interest accrual throughout school.
After inspiration from MMR and other sources a few months ago, I began budgeting and I decided to throwing my extra cash towards loan payments to pay down the interest accrual. I was able to shave off $100 from my budget in June, $100 from July, and $200 in August. In addition, I deposited a bunch of cash lying around for payment, which amounted to $629. This $1,029 went to a payment on my recently disbursed, highest interest loan (6.31%). $16.83 went to interest, $1,012.17 went to principle. I currently have total interest accrual from my lower interest rate loans at $1,027.34, making me only $15.17 behind, although keeping up with additional loans for the next 2+ years will not be possible at this rate.
My question is: should I continue throwing money at the interest throughout my time in school, or would it be best to save money elsewhere?
Thank you for your time!