Paying Off Student Loans

Michael Brown Updated: March 22, 2021

Debt can feel like a weight pressing down on you, but ignoring it doesn’t make things any better. To chart a path out of debt, the first step is figuring out how much you owe. Most people have a vague idea of how many loans they have, but many avoid facing the total head on.

The only way to get control over your finances is to take a full inventory. Add up all of your student loans, credit card balances, car loan balances, lines of credit, overdue bills, and other debts. The grand total can come as a shock, but once you know exactly what you’re dealing with, you have several avenues to explore -- increasing your income, cutting back your spending, and decreasing the sum that you owe.

The last is the one that people overlook most often. But some debts, like medical bills, can be negotiated down. High-interest credit card balances can often be transferred to a new card with a 0% introductory APR. And student loans can often be refinanced or consolidated, saving thousands of dollars over the life of the loan.

8 Tips to Help You Pay Off Student Loans Faster

Paying off student loans isn’t easy, but the following strategies can help you get out from under your debt faster.

1. Refinance for a better rate

Don’t pay more interest than necessary. Refinancing or consolidating your loans could cut hundreds of dollars off of your monthly payments and save you tens of thousands of dollars over the life of your loan. Most federal student loans charge everyone the same percentage, a one-size-fits-all interest rate that is often higher than what private lenders offer, because it has to account for high-risk applicants who are more likely to default or not finish their degrees. People who have built up their credit in the years since graduation are often better off getting a new loan on their own merits. A recent review by the National Student Loan Union found that people who refinanced saved an average of $259 a month and $19,231 over the life of the loan. Some borrowers saved more, and some less, depending on the size of their debt and their credit histories. But the average amounts were pretty staggering.

2. Make extra payments any time you can

With most lenders, there is no penalty for paying early. So any time you have extra money – for example, if you get a tax refund, a bonus at work, or have a month with a third paycheck – it’s smart to make an extra loan payment. Someone with $35,000 of student loans and an interest rate of 6.8% would typically have to pay about $400 a month for 10 years to get out of debt. Adding an extra $100 a month would cut the payoff time by about 2½ years and save $3,583 in interest.

To get the most benefit from your extra payments, be sure to put them toward your highest interest loans first. Start by logging in to the Federal Student Aid website to find out your federal loan interest rates. If you have private loans, contact your student loan servicer to find out your rates. Rank them accordingly and put extra money toward the highest rate loans first.

3. Make a 3- to 5-year plan

It’s easier to make budget sacrifices when you know that it’s temporary. Focus on the end date of your loan, and consider doing things like living with a roommate or keeping an older vehicle until then. Returning to the nest, eating Ramen noodles, and embracing the college lifestyle for a bit longer might not sound that appealing, but committing to your goal will make it all worthwhile.

4. Set up autopay

You’re less likely to overspend if you schedule your loan payments to be debited as soon as you get paid. You won’t miss the money as much if you “take it off the top” and don’t see it in your account. Also, most lenders will give you a 0.25% interest rate discount when you sign up for automatic debit.

5. Explore freelance and “side hustle” opportunities

Doing freelance or part-time work can help keep debt down during and after college. Whether it’s photography, dog-walking, web design, or catering – anything you can do to earn extra money will get you out of debt faster. Sites like Upwork and iFreelance have a wide range of short-term and long-term projects. You can also participate in the sharing economy with companies like Uber, Lyft, Airbnb, and TaskRabitt. Earning an extra $500 a month could cut your payoff time by 5 years or more, depending on how much you owe.

6. Use the buddy system

The buddy system is not just helpful for exercising or losing weight. A lot of people find paying off student loans easier if they have an “accountability partner” who shares the same goals. Things like shopping or going to happy hours can sabotage your financial plans. A buddy can help you stay motivated to cook at home, pursue extra income, decorate with “upcycled” thrift finds, travel cheaply, and avoid splurges. With a little creativity, it can also be fun. You can also read debt success stories and subscribe to couponing and savings blogs.

7. Don’t be afraid to ask for a raise

If you’ve been at your job for a while, you’ve been giving 100 percent, and especially if you have an annual review coming up, consider asking for a raise. Start by keeping track of ways you’ve helped your company save money or make money. Do some research about salaries in your industry and how yours compares. A week or so before your review, schedule time with your boss to discuss your goals with the company and make your case for a raise. They might say no. But if they say yes, you will get a bigger paycheck.

8. Monitor your credit score

Paying your student loans on time each month helps you establish a good credit history. It’s smart to monitor your FICO score for a variety of reasons like buying a car or home, and protecting yourself against identity theft. But as your score rises, you also might qualify for lower interest rates on your outstanding balance – particularly once your score gets above 700. Everyone is entitled to a free credit report every 12 months. You can check yours at

One step you shouldn’t skip

Of all the things you can do to pay off your loans faster, refinancing could be the most impactful. As a result of new competition in the student lending industry, it’s easier than ever for people to review the terms of their student loans and see if they could be getting a better deal. With most lenders, it takes less than 15 minutes to find out how much you could save by refinancing. That’s 15 minutes to potentially save tens of thousands of dollars.

There are many banks that offer student loan refinancing, but based on our research and reviews, we consider these to be the best. Find out how much you can save today with these leading lenders:
#1 - Nitro Recommended View More Details

Special offers for medical resident and fellow refinance products

  • Fixed rates: 1.99% - 7.84% APR
  • Variable rates: 1.74% - 7.49% APR
  • Minimum credit: 650
View More Details
Visit Splash View Loan Disclosure

Splash Financial is a leader in student loan refinancing with some of the lowest fixed in the industry which can save you tens of thousands of dollars over the life of your loans. No application or origination fees and no prepayment penalties. Splash Financial is in all 50 states and is intensely focused on customer service. Splash Financial is also one of the few companies that offers a great medical resident and fellow refinance product. You can check your rate with Splash in just minutes.

  • Low interest rates – especially for graduate students
  • No application or origination fees. No prepayment penalties.
  • Co-signer release program - you can apply for a cosigner release form your loan after 12 months of on-time payments
  • Specialty product for doctors in training with low monthly payment

Click here to see more of Splash's offerings and to see how you can save money.

#2 View More Details

Ability to apply for cosigner release after 24 consecutive payments. 

View More Details
Visit NelNetBank View Loan Disclosure

Give Your Life’s Journey a Jump-Start.

If you’re ready to put student loans in your rearview mirror, Nelnet Bank student loan refinancing offers low rates and flexible terms to help you start getting ahead.

  • VARIABLE RATES: 4.54% - 11.05% APR See Disclaimer
  • FIXED RATES: 4.49% - 8.44% APR See Disclaimer
  • AUTO DEBIT SAVINGS: We’ll knock .25% off of your interest rate when you enroll in auto debit. See Disclaimer
  • NO ORIGINATION FEES: No application, origination, or prepayment fees on Nelnet Bank loans.
  • HARDSHIP PROTECTION: Hardship forbearance helps protect against unexpected loss of income. See Disclaimer

See How Much You Can Save: Estimate your savings with a student loan refinance from Nelnet Bank.

#3 View More Details

ElFi offers top-rated customer service, some of the lowest rates available, and flexible terms to fit your goals.

  • Fixed rates: 3.39% - 6.99% APR
  • Variable rates: 1.86% - 7.98% APR
  • Minimum credit: 680
View More Details
Visit ElFi View Loan Disclosure
Student Loan Refinancing Made Simple.
Discover our low rates and fast, no-fee application process for refinancing your student loans or financing your college education.
The ELFI Difference:
  • Some of the Lowest Rates Available – We believe in rewarding financially responsible borrowers by providing some of the lowest refinancing rates available.
  • Expertise That’s Second to None – Our ELFI management team has over 30 years of expertise in student loans and student loan refinancing.
  • Fast and Easy Process – Secure your personalized student loan or refinancing options in just a few short minutes.
  • Personal Loan Advisors – Our award-winning customer service team will guide you every step of the way.
  • Service Coast to Coast - ELFI private student loans and student loan refinancing are available across the entire U.S. and Puerto Rico.

Click here to refinance now with ELFI.

#4 View More Details

SoFi is the leading student loan refinancing provider. 

  • Fixed rates: 3.49% - 7.99% APR
  • Variable rates: 1.74% - 7.99% APR
  • Minimum credit: 650
View More Details
Visit SoFi View Loan Disclosure

$30 billion+ in refinanced student loans. SoFi has some of the lowest interest rates and, unlike the other lenders we reviewed, there's no maximum on the amount you can finance. Some state restrictions may apply.

  • Serious savings: Save thousands of dollars thanks to flexible terms and low fixed or variable rates.
  • No hidden fees, no catch: No application or origination fees. No pre-payment penalties.
  • Fast, easy, and all online: Simple online application and access to live customer support 7 days a week.
  • Access to member benefits: SoFi members get career coaching, financial advice, and more—all at no cost.
  • 98% of surveyed members would recommend SoFi to a friend

Save thousands on your student loans and pay off your loans sooner. Find your rate.

#5 View More Details

Works with 300+ community lenders for higher approval chances

  • Fixed rates: 2.49% - 7.75% APR
  • Variable rates: 1.90% - 5.25% APR
  • Minimum credit: 660
View More Details
Visit LendKey View Loan Disclosure

Connecting student borrowers to a network of over 300 community lenders with low interest rates. By partnering with these lenders, LendKey is able to give consumers direct access to the best rates available from the most borrower friendly institutions. As the servicer of all loans obtained through its platform, you can rest easy knowing your personal information will be safe and that the best customer service team will be ready to answer your questions from application until your final payment.

LendKey Student Loan Refinance review

  • Lightning fast rate check - 2-minute rate check with no impact on your credit score
  • More lenders, more options - see the best offers from over 300+ community lenders for higher approval chances
  • Life of loan relationship - With LendKey, your personal information will never be sent or passed on to third parties. Their customer service team is with you from the moment you land on their website until you've completely repaid your loan.
  • Unmatched benefits- Community lenders put people over profits and offer unique benefits like cosigner release after 12 on-time payments, interest only repayment options to keep monthly payments low, the largest unemployment protection period in the market, and more.

Get a personalized quote from LendKey now.

#6 View More Details

Best for borrowers who want to customize their repayment schedule to pay off debt fast.

View More Details
Visit Earnest View Loan Disclosure

Using technology, data, and design to build affordable products, Earnest's lending products are built for a new generation seeking to reach life's milestones. The company understands every applicant's unique financial story to offer the lowest possible rates and radically flexible loan options for living life.

  • Commitment-free 2 minute rate check
  • Client Happiness can be reached via in app messaging, email, and phone 
  • No fees for origination, prepayment, or loan disbursement
  • Flexible terms let you pick your exact monthly payment or switch between fixed and variable rates
  • Skip a payment and make it up later
  • Online dashboard is designed to make it easy to apply for and manage your loan

Click here to apply with Earnest and to see how much you can save.

I reduced my student loan payment by $152 per month, by refinancing thru Nitro

Save Money Now