How to pay off student loans fast

Tips to help you pay off your loans

Whether you’re a current college student, a new grad, or a seasoned professional, creating a plan to pay off your student loans is a smart move. With the right resources, you can get ahead of schedule and pay off your student loans fast.

1. Get organized

First, find out what loans you used. If you have federal student loans, you can visit the Federal Student Aid official website or the National Student Loan Data System to find them. If you have private student loans, visit your lender’s website and log into your account or pull your credit report to find out.

After finding all your loans, create a spreadsheet to organize the following info:

• Which loan servicer(s) you used
• How much you owe
• When your payments are due
• What the interest rate is for each loan

With this info, you can see which loans have the highest interest rates. These are the loans you should prioritize to pay down first.

2. Use the right tools

Your student loan payments will be another monthly bill to add to your list of expenses. A monthly budget worksheet can help you see where your student loan payments fit in with things like rent, food, and transportation, and it can help you manage your spending.

If you’re still in school or in your grace period, a student loan calculator estimates how much your student loan payments may be.

3. Make payments while you’re in school

Making payments while in school may help set you up to pay your loans off quicker in the future. Whether you make interest-only payments or even a small, fixed amount every month, you may be able to lower your total loan cost. This could help you graduate with less debt, boost your credit score, and make your post-school payments more manageable.

Are you working while in school? Do you get paid biweekly? Making a student loan payment every time you get paid may help you pay your loan down faster, too.

On a typical monthly repayment schedule, a borrower makes 12 student loan payments per year. By making 26 payments (52 weeks in the year, divided by two) of half the required payment amount, you could end up making 13 months’ worth of student loan payments over the same 12-month span. You may also lower your principal amounts more frequently, which could lead to lower total interest being paid over the life of the loan.

4. Enroll in auto debit

Many federal student loan servicers offer a 0.25 percentage point interest rate discount if you set up automatic payments for your student loan. Many private lenders offer this, too. Enrolling in auto debit may ensure your student loan payments are paid on time each month.

At Sallie Mae, enrolling in auto debit may qualify you for a 0.25 percentage point interest rate deduction on your eligible loan(s).^{footnote 1} By lowering your interest rate and making on-time payments each month, you may save money on your total loan cost, which could result in your student loans getting paid off faster.

5. Take advantage of extra money

Got some birthday money? A bonus from work? A refund? Think about using that money to make an extra payment on your student loan. Even a small amount may save you money on interest over the life of your loan.

6. See if your employer can help

Some employers have programs to help employees pay down their student loans. They may send direct payments to lenders or offer online tools to help employees track their loans. If you’re interviewing for jobs or currently employed, ask a manager or HR representative if your employer has any options to help you pay your loans down.

Address any problems right away 

If you’re having trouble paying down your student loans, you should speak with your cosigner, if you have one. Your cosigner is equally responsible for paying off the loan, so they should know if you’re having trouble. 

Also, don’t hesitate to contact your loan servicer—they may be able to help.