Which Student Loan Should I Pay off First

When prioritizing loan repayments, it’s a good idea to repay your direct unsubsidized loans first before paying back your direct subsidized loans. Because an unsubsidized loan continues accruing interest while in school, the balance of your unsubsidized loans will be larger unless you paid the interest while in school.

Is it better to pay off unsubsidized or subsidized loans first?

When prioritizing loan repayments, it’s a good idea to repay your direct unsubsidized loans first before paying back your direct subsidized loans. Because an unsubsidized loan continues accruing interest while in school, the balance of your unsubsidized loans will be larger unless you paid the interest while in school.

When starting to pay for school which loans should you consider first?

Pay off the student loan with the highest interest rate first. That will save you the most money over time. But if getting rid of small balances one by one motivates you more, go that route regardless of interest rate.