The interest on Sallie Mae college loans changes every month, so signing up to make payments that take care of all the interest each month seems risky. What if I can't afford it, if it jumps a lot?
I think that the $25 per month would be a lot safer, because you know what you have to budget and it won't change. Depending on your interest rate, the amount you pay monthly could be a lot more than $25. Putting the two choices together like that, kind of implies that your payment for the whole interest each month will be around $25, and this is probably not the case.
Twenty-five dollars a month probably won't help reduce the total debt for most people anyway. I would look for a loan that offers other kinds of discounts, or higher ones- not just .25% for automatic payments.
Also, each year you take out a loan adds to the amount you have to pay each month, but during the four years you're in college, your income probably doesn't go up at all. Why not just get a loan where you can wait until you graduate and have a better job, so you can afford payments?
