If you have student loans you may or may not have wondered just how your loan works & how lender determines schedule for how the loan gets paid off? Well read how student loan amortization works here.
In the beginning, very little principal gets paid with the earlier loan payments. However, with each passing payment, more payment goes towards principal and less towards interest
When you make extra payment, it accelerates the loan amortization schedule so that your next loan payment will be made up of a greater amount of principal.
To sum it up, extra monthly payments help you pay less interest and pay your student loan off faster by accelerating the loan amortization schedule.
Basically the more you pay now, the less you will pay later. The more you can get the principal balance down, the less interest you will pay.