Stop Paying Your Student Loans Down So Fast

Follow the Allocation Crossing Point & Step-Down Method instead

That is the wrong question.

Instead, all borrowers with student debt should ask: “how do I optimally *minimize* my interest payable?”

I’m here to tell you DEBT IS NOT INHERENTLY BAD. Debt is only as bad as its daily interest is high!

Therefore, daily interest is a function of your interest rate AND your loan balance, and it represents your key towards getting the most value out of every extra dollar you pay towards your loan.

This article will introduce a new repayment method that is more personalized and will help you get the most value out of every additional dollar that you contribute towards your loans.

Introducing the Allocation Crossing Point and Step-Down Method to Loan Repayment

Allocation Crossing Point (ACP) is defined by the month when less than 50% of your minimum monthly payment starts being allocated towards interest, meaning every additional $1 contributed towards your loan will save less than $1 of interest.

Step-Down Method represents the repayment technique that you may seek to employ after the ACP is passed. Since the ROI of every additional $1 drops below 100%, you should start contributing less than your maximum available net cash flow if you want to optimize repayment.

Example of Loan Repayment Schedule & Allocation Crossing Point

If You Have Multiple Loans

The way to follow the Allocation Crossing Point method when you have multiple loans is simple:

If you would like free access to a spreadsheet that formats this information for you, please email me:

If You Have One Loan

Therefore, you can skip over calculating the daily interest accrual and move on to determining if you should either maximize or step-down additional payments.

If you would like to talk through the step-down method and how to apply it to your unique loan scenario, you can email me at

Emotional Health | Student Debt | Career Advice. Repaying my student loans w/ a proprietary method & helping others save tens of thousands too. Let’s talk debt!

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