Paying student loans

Benefits of making in-school payments on your student loans

July 29, 2025 – 4 mins

Are in-school payments right for you?

Let’s start by answering a common question: “Can I make student loan payments while I’m in college?” Yes, you can—and should. Here’s why.

You could save money with in-school payments

You’ve probably heard of interest—it’s the cost of borrowing money. Student loans usually start racking up (accruing) interest as soon as the money is sent to your school. That means by the time you graduate, your loan balance could be a lot bigger than what you originally borrowed. But not all student loans work the same way when it comes to interest.

There are two kinds of federal student loans—subsidized and unsubsidized. The government covers interest for subsidized loans while you’re in school. However, interest starts building immediately for unsubsidized loans. For private student loans, interest begins to grow as soon as the funds have been sent to your school.

If you let that interest sit while you’re in school, it can pile up. But if you start making small payments—like just the interest or even $25 a month—you could lower the total cost of your student loan and save money in the long run.

Not sure if you can afford to make payments in school? Consider using extra money, tax refunds, or money from a side hustle. Every little bit helps.

Need money for college?

Consider a Sallie Mae^® private student loan

Available for online or on-campus study
Competitive fixed and variable rates
No origination fee or prepayment penalty^{footnote 1}
95% of undergraduate students who’ve been approved with a cosigner were approved again when they returned with a cosigner the following year^{footnote 2}

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Photo webImage blog Cross Sell study Girl.

Make payments no matter your repayment option

When you first get your student loan, you choose to either make in-school payments or defer (put off) making payments until after graduation or leaving school. Deferring payments can be helpful for people who can’t or don’t want to make regular payments during school. But with private student loans, interest continues to grow all through the years you’re in school and you’ll end up paying more for your loan.

Deferring your loan payments means that you don’t have to make payments while in school. But you’re allowed to (and should!) make payments if you can. It could help you save money on your total loan cost.

Build credit with regular payments

Paying your student loans while you’re in school isn’t just about saving money—it can also give your credit score a boost. Credit is the ability to borrow money, based on the lender’s belief that you can pay it back.

If you don’t have much of a credit history yet, making on-time payments is a great way to show lenders you’re responsible. Your credit history can help when you’re ready to get a car, rent an apartment, or apply for a credit card.

Take control of your loan

Is making in-school payments right for you? If you’ve got a little wiggle room in your budget, it’s definitely worth considering. It may lower your total loan cost, make your post-school payments more manageable, and build your credit.

footnote Sallie Mae does not provide, and these materials are not meant to convey, financial, tax, or legal advice. Consult your own financial advisor, tax advisor, or attorney about your specific circumstances.

footnote External links and third-party references are provided for informational purposes only. Sallie Mae cannot guarantee the accuracy of the information provided by any third parties and assumes no responsibility for any errors or omissions contained therein. Any copyrights, trademarks, and/or service marks used in these materials are the property of their respective owners.

footnote Sallie Mae, the Sallie Mae logo, and other Sallie Mae names and logos are service marks or registered service marks of Sallie Mae Bank. All other names and logos used are the trademarks or service marks of their respective owners.

footnote 1. Although we do not charge you a penalty or fee if you prepay your loan, any prepayment will be applied as provided in your promissory note — first to Unpaid Fees and costs, then to Unpaid Interest, and then to Current Principal.

footnote 2. Sallie Mae loans cover enrollment periods of up to 12 months. Students must apply for a new loan each school year. This approval percentage is based on students who were approved for a Sallie Mae undergraduate loan with a cosigner in the 2021/22 school year and were approved for another Sallie Mae undergraduate loan when they returned with the same or new cosigner in 2022/23. It does not include the denied applications of students who were ultimately approved in 2022/23.