Back when you signed up for your first federal student loan, you might have been grateful to learn you had 10 years or more to pay the money back. A longer loan term typically comes with smaller monthly payments — and that can be helpful when you’re just starting out and trying to make ends meet.
Once you’re feeling steadier on your feet financially, though, the idea of dumping that debt a little sooner than planned can be tempting. One way to do that is by adjusting the frequency of your student loan payments. You can make extra student loan payments each month beyond your minimum required payment.
Below we explore the merits of making weekly student loan payments vs. biweekly or monthly student loan payments.
Table of Contents
Key Points
• Making weekly or biweekly student loan payments can help pay off debt faster and reduce total interest costs.
• Extra payments should be applied to the loan principal to maximize savings and avoid early payment being counted toward future minimums.
• Biweekly payments align with many payroll schedules and can result in an extra full payment each year.
• Alternative repayment strategies include adding small extra amounts monthly, making lump sum payments, or refinancing for better terms.
• Income-driven repayment plans may be a better option for those struggling with federal student loan payments.
How Do Weekly Student Loan Payments Work?
You can make weekly student loan payments through automated or manual payments every seven days. Both federal and private student loans typically require minimum monthly payments, but you can make extra payments above that amount if you wish.
If you’re required to pay $300 per month on student debt, for example, you could instead pay $100 each week. Paying at that rate would accelerate your loan payments, meaning you may pay your debt off faster and reduce your total interest costs over the life of the loan.
Here’s another example of how weekly student loan payments can work:
Let’s say a recent graduate has a monthly student loan payment of $400. That’s $4,800 a year. Now that she’s working, she realizes she can pay a little more every month. If she splits that $400 into $100 weekly student loan payments, over the course of the year she’ll pay $5,200 instead of $4,800. That’s equal to a whole extra payment for the year that can reduce her interest costs over the life of the loan.
What’s an Extra Student Loan Payment?
An extra student loan payment is when you pay more than the required amount due on your monthly billing statement. You can make extra student loan payments if you wish, but it’s important that everyone is on board regarding how those extra payments should be applied.
When you apply for student loans, you may take out multiple education loans to help cover your tuition and related expenses. You can instruct your lender to put extra payments toward principal reduction, not the next month’s payment. It may be possible to do this electronically by logging into your account and selecting how the extra amount should be allocated.
As a borrower, you can consider different repayment options. If you determine that making extra payments is right for you and your budget, you can ask your lender or loan servicer to allocate your extra payments to your higher interest loans first.
Student loan refinancing may be another way to reduce your total interest costs.
💡 Quick Tip: Ready to refinance your student loan? With SoFi’s no-fees-required loans, you could save thousands. Note that you may pay more interest over the life of the loan if you refinance with an extended term.
Are You Ready for Accelerated Payments?
Just about every financial strategy has pros and cons, and that applies to accelerated payments. There are a few scenarios when making extra loan payments wouldn’t necessarily be in a borrower’s best interest.
If a person is carrying $50,000 in high-interest credit card debt, for example, that debt may take priority over a student loan with a lower interest rate.
Another priority could be building an emergency fund first to handle unexpected costs — from car repairs to medical bills.
You have no obligation to pay extra, but borrowers are expected to repay their student loans when due. Missing payments could damage your credit score and eventually lead to default.
Recommended: How to Pay Off $100K in Student Loans
Benefits of Paying Student Loans Biweekly
Reduce Total Interest Costs
Making loan payments biweekly instead of monthly can accelerate the payoff of the student debt and reduce your total interest costs over the life of the loan. Paying student loans biweekly may be right for you if you’re interested in paying more than your required amount due each month.
You Can Align Payments with Your Paycheck
Aligning payment frequency with an employer’s payroll schedule (whether it’s weekly or biweekly) may help with budgeting and ensuring money is in the right bank account when your payment is due. If you’re making weekly or biweekly payments, it’s critical that you cover at least the required amount due by your scheduled due date to avoid any penalties.
You Can Rely on Autopay to Deduct Your Payment
If that seems like too much extra work and worry, autopay (also called direct debit) might be a solution to staying on top of payments. The U.S. Department of Education does not charge prepayment penalties on federal student loans, and federal law prohibits prepayment penalties on private student loans.
Whether you have federal or private student debt, paying off your education loans sooner rather than later can minimize your total interest costs without penalty.
Alternatives to Accelerated Payments
For those who aren’t quite ready to move into an accelerated payment plan, there are alternative methods that can help with getting ahead of student debt.
Pay More When You Can
To try a test run, you could divide your current monthly payment by 12 and add that amount to each payment whenever possible. For example, a $400 monthly payment would be about $33 extra a month, but when times are tight, you could send the regular amount.
Another approach might be to put lump sums of extra money toward loan payments spontaneously but whenever possible. (If you get a tax refund, for instance, or receive a bonus at work.)
Consolidate Your Loans
You could also look at a federal Direct Consolidation Loan, which allows you to combine your federal education loans into a single loan with one payment. That can make repayment more manageable, but because it’s a government program, it doesn’t include private loans. And a federal consolidation loan usually increases the period of time the borrower has to repay the loans, which means one could end up paying more in interest.
Refinance Your Loans
If you have a stable income and solid credit, you might want to look at combining all of your student loans into a new loan with one manageable payment by refinancing with a private lender. Note that refinancing federal loans means losing eligibility for federal repayment plans, forgiveness programs, and other benefits.
đź’ˇ Quick Tip: When refinancing a student loan, you may shorten or extend the loan term. Shortening your loan term may result in higher monthly payments but significantly less total interest paid. A longer loan term typically results in lower monthly payments but more total interest paid.
Use an Income-Driven Repayment Plan
Making weekly or biweekly student loan payments may not be right for everyone. If you cannot afford voluntary extra payments on federal student loans, you may consider enrolling into a federal income-driven repayment (IDR) plan. Private student loans are not eligible for IDR plans.
Your current options for income-driven repayment are the Income-Based Repayment (IBR) plan, Pay As You Earn (PAYE) plan, and Income-Contingent Repayment (ICR) plan. All these plans adjust your payments based on your income and extend your terms to 20 or 25 years.
The IBR plan can also end in loan forgiveness eventually. Due to recent legislation, the PAYE and ICR plans will shut down by July 2028. The IBR plan will remain an option for current borrowers. Current and new borrowers will also be able to access the new Repayment Assistance Plan starting in July 2026.
Pros and Cons of Student Loan Refinancing
Refinancing student loans has both pros and cons. Here are some potential advantages:
• Lower interest rate: The primary benefit is reducing your interest rate. This can reduce your monthly payment and lead to major savings over the life of your loan.
• New repayment terms: You can choose new terms, often between five and 20 years. A shorter term can accelerate repayment, while a longer term will make your monthly student loan bills more affordable (but probably increase your interest costs).
• Combining multiple loans into one: You can refinance multiple loans into a single new loan, which could simplify repayment.
Some potential downsides of refinancing include:
• Lose eligibility for federal repayment plans: Refinancing federal loans into a private loan means you’ll no longer qualify for federal repayment options like income-driven repayment.
• Forfeit access to federal loan forgiveness: If you refinance federal loans, you’ll also no longer be able to get forgiveness from an IDR plan or the Public Service Loan Forgiveness program.
• Pay more interest if you extend your loan term: If you add years to your repayment term, you’ll likely end up with higher interest charges in the long run.
Weigh the pros and cons of student loan refinancing carefully to determine whether it’s the right path for you.
Recommended: Should I Refinance My Federal Student Loans?
The Takeaway
Choosing the right payment frequency for your student loan can significantly impact your financial well-being and the speed at which you pay off your debt. Whether you opt for weekly, biweekly, or monthly payments, the key is to find a schedule that aligns with your budget and financial goals.
Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.
FAQ
How can making weekly or biweekly payments benefit you?
Making weekly or biweekly payments can help you pay off your student loans faster and reduce the total interest you pay over the life of the loan. This is because you end up making the equivalent of one extra monthly payment each year, which can significantly decrease your loan balance.
Can making more frequent payments affect your credit score?
While making more frequent payments doesn’t directly impact your credit score, it can indirectly help build it by reducing your overall debt more quickly. This can lower your credit utilization ratio and demonstrate responsible financial behavior, which are positive factors for your credit score.
What should you consider when deciding on a payment frequency?
When deciding on a payment frequency, consider your budget, cash flow, and financial goals. Ensure that the chosen frequency is sustainable and doesn’t strain your finances. It’s also a good idea to check with your loan servicer to understand any specific requirements or benefits associated with different payment frequencies.
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