How can you minimize the total amount paid in interest on student loans?

Choosing to pay off the highest interest rate loans first is an effective strategy for minimizing the total amount paid in interest on student loans. This approach is known as the avalanche method. By prioritizing loans with the highest interest rates, you reduce the amount of interest that accrues over time because you're diminishing the principal on the loans that cost you the most in the long run.

When high-interest loans are paid off first, less interest will accumulate as these loans are outstanding for a shorter period compared to others. This method can significantly decrease the overall interest payments, which can lead to considerable savings over the life of the loan.

In comparison, making only minimum payments will generally increase the total interest paid since most of the payments go towards interest rather than the principal. Delaying payments will also lead to additional interest being added to the principal, compounding the amount owed. While refinancing can sometimes offer lower interest rates, it may not always be possible or beneficial depending on individual circumstances and market conditions. Therefore, focusing on the highest interest loans first is a judicious choice for minimizing interest payments effectively.