How do I know whether it is a good deal to pay off a student loan early? More than nine years ago, I owed $10,000 in student loans to one provider who offered a $2,000 discount if I paid it off immediately. But other people might face similar questions if they have low rates on auto loans, credit cards and other debt: Is it smart to pay the loan off early, even though it isn’t accruing much interest — or any interest at all? Most student loan borrowers won’t see this kind of offer to reduce what they owe unless they are struggling to keep up with their payments, Mayotte says. On a purely financial basis, it could be more cost-efficient to pay off the loan early in exchange for the smaller debt load, Mayotte says.

Source: Washington Post September 06, 2016 11:03 UTC