 TITLE: How to Pay Off Student Loans Faster CONTENT: Start Paying Off Your Loans as Soon as Possible\n-----------------------------------------------\nStudent loan interest starts accruing the day you receive the funds. But by starting the payments before they're due, you can effectively lower the amount that you'll have to pay.\nIf you have a subsidized federal loan, the federal government will take care of the interest payments while you are enrolled and for up to six months after you leave school or graduate. Making payments during this time will reduce the principal loan amount that's used to calculate interest. To illustrate, say you borrow $30,000 and make payments totaling $5,000 before your first payment is due. You will only pay interest on $25,000 when the repayment period begins.\nIn the case of an unsubsidized loan, the interest is your responsibility from the day the loan hits your bank account. You don't have to make payments until your enrollment drops below half-time or until the six-month grace period after you leave school ends. It's still a good idea to pay at least the interest that accrues before your first payment is due, though—otherwise it will be added to your loan principal, or capitalized, and begin accruing interest.\nPrivate lenders have different policies for assessing student loan interest. Some charge interest from day one, and others wait until students leave or graduate. Either way, it's a good idea to start repaying your loans as soon as you can to reduce the principal balance or interest if it's tacked on while you are in school. END