To get started, enter the total amount of your loan, the accompanying interest rate, and your regular monthly payment.
The calculator will tell you how much you can save over the life of your loan by implementing a biweekly repayment plan – that is, making payments equal to half your regular monthly payment every two weeks. It will also tell you how much sooner you’ll pay off your loan.
(If you are unsure of your monthly payment, or your loan is not yet in repayment, you can estimate your monthly student loan payment using the Basic Student Loan Payment Calculator.)
The results table will show you the year end balance for each year your loan is in repayment. To see the full schedule of payments, click ‘SEE FULL AMORTIZATION TABLE’.
By making payments bi-weekly, you will save ___________ over the life of your loan. Additionally, you'll pay it off ___________ months sooner.
BI-WEEKLY REPAYMENT SUMMARY
|Year||Total Paid||Interest Paid||Balance|
SCHEDULE OF PAYMENTS
What Are Biweekly Payments?
A biweekly student loan repayment plan is one in which you pay half of your regular monthly payment every two weeks. In total, you’ll make 26 payments throughout the course of the year. You’ll make payments more often, and you’ll pay more each year than you would on a monthly repayment plan, but you’ll pay your loan off sooner, and pay less in interest over the long term.
How Does a Biweekly Plan Create Savings?
Under a biweekly plan, you’ll make a total of 26 payments during the course of the year, each for half the amount of your normal monthly payment. This equates to one full extra payment each year.
Of course, by paying more, you’ll pay your loan balance down faster. A lower balance means that you’ll pay less in interest.
Why Use a Biweekly Repayment Strategy?
You may be asking yourself what’s so special about a biweekly repayment plan. After all, you’re just paying more, which isn’t a fancy strategy at all. And, for the most part, this is true.
While there’s nothing magical about a biweekly repayment strategy, it provides a structured approach to paying down student debt. And, for many people, it’s easier to stick to a predefined plan.
How Do I Implement a Biweekly Payment Strategy?
Most student loan servicers don’t offer a biweekly repayment plan. So, you’ll need to implement this strategy yourself. Fortunately, it’s not all that difficult, and we created a spreadsheet to help you track your biweekly student loan payments.