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Student loan debt in the US totals over $1.6 trillion, with an average balance of $35,000 or more per borrower. These numbers aren’t getting any better. If you have a lot of student loan debt, there are a few ways to repay it faster. Some are a little more unconventional than others.
The federal government backs most student loans, and incentives, such as subsidized interest payments and loan forgiveness, are available. But most borrowers need to get them paid off as quickly as possible so they can start growing wealth. Student loans can feel like a heavy load.
To help, we’ve compiled a list of 15 strategies to pay them off faster. If you’re stressed over your loans or someone you know, use these strategies to pay them off early.
Use the Debt Avalanche Method
To do this, list all your student loan debt in order of interest rate. Make at least the minimum payment on all your loans, but prioritize paying extra on the loans with the highest interest rates. This will pay off the more expensive debt more quickly and cut down on interest charges.
Use the Debt Snowball Method
With the debt snowball method, you focus on paying the small loans first and then work towards the larger ones. It can be effective because you’ll feel a sense of accomplishment as the smaller loans are paid off. This can help motivate you to pay off the larger debts faster.
Live on a Tight Budget
You can still live on a student’s budget even after graduating college. This will ensure you have extra funds to pay off your student loans faster.
Take on a Side Hustle
Even if you land a fantastic job right out of college, you can take on a side hustle to earn a little extra and use it to pay off your student debt. There are plenty of things you can do part-time and many work-from-home options available.
Use ‘Found’ Money
If you get any type of financial windfall, such as a raise, inheritance, or loan refinance bonus, put at least part of it to make extra payments on your student loans. Focus on the ones with the highest interest first.
Ask Friends and Family for Help
If you have somebody close to you willing to lend you a hand, ask them if they’d help you with your student loans. It could be making a single payment on one of your loans or offering you an interest-free personal loan to help you pay the balance.
Join Clinical Trials
Clinical trials are a good way to make extra money, which you can use to make additional payments on your student loans. In a clinical trial, medical professionals test medicines and viral responses on you. Before you do this, check with your doctor to ensure you’re healthy enough to participate.
Donate Blood
You can donate blood, plasma, sperm, or eggs. Each donation isn’t a lot, but it adds up, and you can use the money you earn to make extra payments on your student loans.
Get a Part-Time Job While in College
If you get a part-time job while still in college, you can use what you earn and reduce how much you need to borrow in student loans. This will help make your repayments a little easier. Check to see how much you can earn without affecting your eligibility for financing and your school’s resource center to see what local jobs are available.
Refinance
Refinancing your student loans can help you pay them off more quickly without making extra payments. Refinancing will allow you to combine multiple student loans into one. Look for options with lower interest rates than the original loans and shorter terms to get the refinanced loan paid off quickly.
Make Extra Payments
This is one of the easiest ways to pay off student debts faster. Even if you can’t make a lump sum payment, you can make smaller, additional payments that will help reduce your overall balance.
Apply for Loan Forgiveness & Assistance
Many state and federal programs offer student loan forgiveness and assistance if you go into specific employment fields. For example, the Public Service Loan Forgiveness program provides forgiveness after ten years if you work for a nonprofit or the government.
Set up Autopay
Most lenders offer a discount or reduction in interest rates if you set up autopay. This means more of your payments will go towards the principal, which will help you pay off the loans more quickly.
Take Advantage of Tax Credits & Deductions
You may be eligible for a tax credit if you pay tuition for a graduate or undergraduate program. Tax credits are often better than deductions. But both will reduce the amount you have to pay in taxes. This leaves you with a larger tax refund and more disposable income to repay your student loans.
Make Payments While in School
While you don’t have to pay on student loans until after you graduate, you can get a head start by making payments while you’re still in school. This won’t be practical for everyone, but if you have a part-time job and some extra income, making early payments will help you pay off your loans faster.
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