5 Ways to Pay Off Your Student Loans Faster

Loan Repayment3 minutes

There are manageable ways to pay off your student loans more efficiently and ensure you are getting the most out of each payment.

Here are five ways to pay off your student loans faster and save money:

1

Pay Right Away

Interest will continue to build when delaying or lowering payments.
Remember, interest continues to build when delaying or lowering payments.

Consider making student loan payments during your grace period or while you’re still in school, even if you’re not required. If you can, try to pay at least enough to cover the amount of interest you’re accruing each month. That way less interest will capitalize and get added to your principal balance when you enter repayment.

2

Sign up for Automatic Debit

A bullhorn announcing the 0.25% interest rate reduction you can get by signing up for automatic payments.
Did you know you can reduce your interest rate by 0.25% by signing up for automatic debit?

If you sign up for automatic debit, your student loan servicer will automatically deduct your student loan payment from your bank account each month. Not only does this help ensure that you make payments on time, but you may also be able to get an interest rate deduction for enrolling. Contact your loan servicer to see if your loan is eligible for this interest rate reduction.

3

Pay More than Your Minimum Payment

The extra dollars you pay add up to save you money and pay off early.
Additional payments can contribute to extra savings and paying your loan of quicker.

Paying a little extra each month can reduce the interest you pay and reduce your total cost of your loan over time. Continue to make monthly payments even if you have satisfied future payments, and your loans will be pay off your loan faster. Ask your servicer if the additional payment amount can be allocated to your higher interest loans first.

4

Use Your Tax Refund

Bags of money, representing the costs you can save with extra payments.
Making extra loan payments lowers your overall cost.

One easy way to pay off your loan faster is to dedicate your tax refund to paying off some of your student loan debt. Part of the reason you may have received a refund in the first place is because you get a tax deduction for paying student loan interest.

5

Seek Out Loan Forgiveness and Repayment Options

Information about the different types of loan forgiveness available, based on employment, financial need, and service.
There are loan forgiveness options for teachers, public service, income-driven repayment, military, and Americorps.

There are a number of situations under which you can have your federal student loan balance forgiven. There are loan forgiveness and repayment programs for teachers, public servants, members of the United States Armed Forces, and more.

Most of these programs have specific eligibility requirements, but if you think you might qualify, you should definitely do some research. Also, research whether your employer offers repayment assistance for employees with student loans. There are many who do!