Will switching from monthly to biweekly payments help me pay down my student loan debt faster?

by James J. Newhard | Jun 08, 2015

Yes, it will. Interest is calculated on outstanding principal from payment to payment. More frequently remitted payments amortizes reductions to principal each biweekly payment, and the interest would be calculated on a lower, though slightly, principal balance. This is an excellent strategy for saving both interest costs and total cash in repaying debt.


James J. Newhard, CPA is the owner of James J. Neward, CPA in Paoli. 
The responses are based on the limited information provided by the questioner and apply the laws and regulations at the time of posting. Other options could arise as rules and regulations may change over time, including but not limited to the passage of the Tax Cuts and Jobs Act of 2017. They are intended to provide general information, not specific accounting or tax advice; they are not intended or written to be used and cannot be used for the purpose of avoiding or evading taxes or penalties under the IRS code or regulations. Views expressed do not imply an opinion of the PICPA, its officers, directors, employees, or members.
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