Student Loan Example : Loan Interest Byter

Student Loan Example

Beat your student loan debt with our bi-weekly payment plan.

Student Loans

Use our bi-weekly payment plan to get out from under your student loan debt. Pay those loans off early and save a lot of money.

The current student loan debt is $1.5 trillion dollars (Forbes, June 13, 2018). It should therefore be no surprise that many of you have a significant amount of student loan debt, and as a result, have unusually high debt to income and payment to income ratios. Because you may have a relatively high level of debt and correspondingly high debt to income and payment to income ratios, many lenders may decline you when you seek approval for a vehicle or home loan. Furthermore, if your loan is approved, your interest rate will be higher than if you did not have so much student loan debt.

Bi-weekly payment plans help you make 26 bi-weekly payments in a year. As a result, you make 13 monthly payments in a 12 month year. Your extra monthly payment goes straight towards the principal of the loan. And that’s how a bi-weekly plan helps pay your loan off early and save you money.

The tables below have three columns of information. The first column (Monthly) is what you save if you do not use a bi-weekly payment plan: nothing. In the second column (Bi-Weekly), you begin to see savings, especially with larger student loans. Even bigger savings appear in the third column (w/Boost). All you’re doing by “Boosting” your bi-weekly payment is increasing your bi-weekly payment by a dollar amount of your choosing. As you can see, the savings with the payment boost are significant.


	Monthly	Bi-Weekly	w/Boost
Loan Amount	$5,000.00	$5,000.00	$5,000.00
Interest Rate	6.34%	6.34%	6.34%
Loan Term	120 months	120 months	120 months
Payment	$56.37	$31.13	$41.13
Payment Boost	N/A	N/A	$10
Savings at Payoff *	N/A	N/A	$1,523.14
Months Saved	N/A	N/A	3yrs+4mths

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* Net service fee $399 and ACH fees.


	Monthly	Bi-Weekly	w/Boost
Loan Amount	$20,000.00	$20,000.00	$20,000.00
Interest Rate	5.34%	5.34%	5.34%
Loan Term	120 months	120 months	120 months
Payment	$215.47	$110.69	$120.69
Payment Boost	N/A	N/A	$10
Savings at Payoff *	N/A	$1,191.73	$3,679.34
Months Saved	N/A	9 months	21 months

Table Plugin

* Net service fee $399 and ACH fees.

How the bi-weekly payment plan helps with student loans

The obvious answer is that the bi-weekly payment plan will pay your student loan off earlier and save you money. The other benefit is the bi-weekly payment plan’s ability to reduce your debt to income and payment to income ratios. Banks look at both of those ratios when making a decision to lend you money or not. Since the bi-weekly payment plan accelerates student loan payoff, it reduces both of those ratios. And that means the bank will be more likely to give you a loan approval (versus a decline) and if approved, your interest rate is more likely to be lower than if you did not use the bi-weekly payment plan to pay your student loans off early.

Calculate how much you can save on your own student loans

You’ve seen the examples. Aren’t you a bit more than a little curious to see how much money the bi-weekly payment plan can save you on your own loans? Just click here, then enter your student loan information into the calculator. The results will impress you: early payoff and a lot of money saved!