Choosing which student loans to pay off first
I'm trying to take advantage of the 0% interest rate on student loans right now by attacking my principal amounts. I'm wondering the best way to approach it--should I focus on one loan or spread out my payment between them?
Here is a snapshot of my loan situation (these are just the unsubsidized ones, I have two subsidized loans as well). I recently put my whole stimulus check towards the top one.
I think Dave Ramsey recommends the debt snowball approach of only focusing on one, but I wanted to see if there were other thoughts.
Another vote for starting with the lower balance if the rates are similar. My problem with going after the larger is that the lower ones just hang around taunting me...
Also, patience, or rather the lack of it. I can knock out a $500 balance faster than a $5000 one and the debt is gone, not just reduced.
I suggest paying the minimum + 5-10% if feasible (of the minimum, not the total owed) on the larger loan while throwing everything you've got at the other.