what is the most effective way to take advantage of 0% interest : personalfinance


So I have 10 separate student loans, but I’m debt avalanching 2 of them right now which have significantly higher interest than the rest. Balance and interest rate as follows:

1 – $3474 // 6.8%

2 – $5707 // 6.8%

Normally I obviously put my snowball at the 1st loan since it has a lower balance and the original plan was to pay that one off then start the 2nd one.

However now that we have 0 interest till September, I want to know what the most effective way to pay these off is. My payment designated for these two loans is $610. I have a bonus coming in May that will allow me a one-time larger payment of $880.

My question is, should I continue the same way I have been and pay 100% to the 1st loan?

OR, should I split up the payment between the 2 loans to try and lower the 2nd one’s balance so that it will accrue less interest when the interest comes back? I hope that makes sense. This would obviously prolong loan 1’s payoff duration, but if it will save me interest on loan 2 (which accrues a significant amount compared to loan1), then I can live with that.

I’m really dumb when it comes to numbers, so please any and all help greatly appreciated. xx



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