Best way to pay off student debt

Q: How do I pay off 100K in student loans?

Heres how to pay off 100K in student loans:.

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

Table of Contents Show

Pay Right Away
Sign up for Automatic Debit
Pay More than Your Minimum Payment
Use Your Tax Refund
Seek Out Loan Forgiveness and Repayment Options
1. Pay more than the minimum payment
2. Avoid certain repayment plans
3. Use your job to your advantage
4. Consider refinancing your student loans
5. Take advantage of tax deductions and credits
6. Enroll in autopay
7. Use found money
8. Cut from your budget
9. Make extra payments whenever you can
10. Make bi-weekly payments
11. Take advantage of your grace period
Student loan payment FAQs
How long does it typically take to pay off student loans?
What’s the quickest way to pay off student loans?
When is my first student loan payment due?
Find your loan score
What is the fastest way to pay off student debt?
How do you realistically pay off student loans?
Is paying off student loans early worth it?
How do I pay off 100K in student loans?

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

1 Pay Right Away

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 to do so. 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

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

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’ve satisfied future payments, and you’ll 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

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

There are a number of situations in 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!

Our goal is to give you the tools and confidence you need to improve your finances. Although we receive compensation from our partner lenders, whom we will always identify, all opinions are our own. Credible Operations, Inc. NMLS # 1681276, is referred to here as "Credible."

The most effective way to pay off student loans fast is to pay more than the minimum payment in any way you can. The more you pay down the principal balance, the less you’ll pay in interest overall.

Here are 11 creative payoff strategies to help you pay down your student loans faster:

Pay more than the minimum payment
Avoid certain repayment plans
Use your job to your advantage
Consider refinancing your student loans
Take advantage of tax deductions and credits
Enroll in autopay
Use found money
Cut from your budget
Make extra payments whenever you can
Make bi-weekly payments
Take advantage of your grace period

1. Pay more than the minimum payment

Effectiveness: High

The simplest and best way to pay off your student loans is to just pay more. But sometimes that’s easier said than done.

You don’t necessarily have to pay double or triple; maybe you can just afford to pay $20 or $50 more every month. Whatever is possible — do it! Any amount that you can pay over the minimum will help you erase your student loan debt sooner. Just make sure your loan servicer is applying your extra payments to your loan principal. And over time, as your situation allows, increase the extra amount you’re paying.

Use a student loan payoff calculator to see how increasing your monthly payments can impact the total cost of your loan (and how much interest you’ll save!).

Estimate how long it’ll take to pay off your student loan debt using the calculator below. You can also use the slider to see how increasing your payments can change the payoff date.

Enter loan information

Loan balance ? Enter the remaining balance of your loans $

Interest rate ? Enter the average annual interest rate of your loans %

Loan term ? Enter the amount of time left to repay your loan years

What if you increased your monthly payment?

+ $0

Total Payment $

Total Interest $

Monthly Payment $

If you increase your payments by $ monthly on your $ loan at %, you will pay $ a month and pay off your loan by Jan 2021.

Does refinancing make sense for you?
Compare offers from top refinancing lenders to determine your actual savings.

Check Personalized Rates

Checking rates won’t affect your credit score.

Find Out: Which Student Loans to Pay Off First

2. Avoid certain repayment plans

Effectiveness: Depends

Government repayment programs such as income-based repayment can be a saving grace for those struggling to repay their loans, as they can help you avoid default on federal loans. But if you’re trying to pay off your loans faster and have the budget to do so, repayment programs can actually work against you.

Most repayment programs lower your monthly payments by lengthening your loan term. So not only will it take you longer to get out from under your debt, you may end up paying more interest overall, particularly if you don’t qualify for loan forgiveness. So, if you’re truly trying to pay off your student loans faster, avoid repayment programs that extend your payment terms.

Find Out: Can You Pay Your Student Loans With a Credit Card?

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3. Use your job to your advantage

Effectiveness: Medium to high

Your day job might help you pay off your loans in a few ways, too. A number of jobs offer student loan forgiveness in exchange for working in a service capacity. Some public servants, doctors, lawyers, nurses, volunteer organization workers, federal agency employees, and automotive workers may be eligible for student loan assistance or forgiveness, so check whether your career goals align with the criteria for each forgiveness program.

Some employers have started to offer student loan assistance as part of their benefits package, so it could be worth taking this into account as you look for your next job or asking your current employer if they offer (or would consider offering) this perk. Even if it’s not explicitly stated, it could be worth negotiating something into your compensation package if you expect student loans to be a significant burden on your finances.

Learn More: Should You Pay Off Student Loans or Invest?

4. Consider refinancing your student loans

Effectiveness: High

Student loan refinancing is an increasingly popular option for borrowers with good or excellent credit and relatively high interest rates.

When you refinance, you essentially consolidate your student loans into one by taking out a new loan with a private lender and use it to pay off your original loan. This allows many borrowers to secure lower interest rates because they’re more financially stable than when they took out the loan in the first place.

Keep in mind that if you refinance your federal loans, you’ll no longer have access to federal programs like income-driven repayment or student loan forgiveness.

Here are some lenders that will allow you to refinance your loans over the course of just five years (which will help you pay them off faster and save money in interest):

LenderRates from (APR)Min. term (years)

Credible Rating

Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.

View details

Variable: 4.08%+
Fixed: 4.21%+5Get Rates

Fixed APR: 4.21%+
Variable APR: 4.08%+
Min. credit score: 690
Loan amount: $10,000 to $400,000
Loan terms (years): 5, 7, 10, 15, 20
Repayment options: Military deferment, forbearance
Fees: Late fee
Discounts: Autopay
Eligibility: Must have a credit score of at least 720, a minimum income of $60,000, and must be a resident of Texas
Customer service: Email, phone
Soft credit check: Does not disclose
Cosigner release: No
Loan servicer: Firstmark Services
Max. Undergraduate Loan Balance: $100,000 - $149,000
Max. Graduate Loan Balance: $200,000 - $400,000
Offers Parent PLUS Refinancing: Does not disclose

Credible Rating

View details

Variable: 5.09%+1
Fixed: 5.39%+15Get Rates

Fixed APR: 5.39%+1
Variable APR: 5.09%+1
Min. credit score: Does not disclose
Loan amount: $10,000 to $750,000
Loan terms (years): 5, 7, 10, 15, 20
Repayment options: Immediate repayment, academic deferment, military deferment, forbearance, loans discharged upon death or disability
Fees: Late fee
Discounts: Autopay, loyalty
Eligibility: Must be a U.S. citizen or permanent resident and have at least $10,000 in student loans
Customer service: Email, phone, chat
Soft credit check: Yes
Cosigner release: After 24 to 36 months
Loan servicer: Firstmark Services
Max. Undergraduate Loan Balance: $100,000 to $149,000
Max. Graduate Loan Balance: Less than $150,000
Offers Parent PLUS Refinancing: Yes

Credible Rating

View details

Variable: 3.69%+2
Fixed: 4.49%+25Get Rates

Fixed APR: 4.49%+2
Variable APR: 3.69%+2
Min. credit score: Does not disclose
Loan amount: $5,000 to $300,000
Loan terms (years): 5, 7, 10, 12, 15
Repayment options: Military deferment, forbearance, loans discharged upon death or disability
Fees: Late fee
Discounts: Autopay
Eligibility: All states except for ME
Customer service: Email, phone, chat
Soft credit check: Yes
Cosigner release: After 24 to 36 months
Loan servicer: College Ave Servicing LLC
Max. Undergraduate Loan Balance: $100,000 to $149,000
Max. Graduate Loan Balance: Less than $300,000
Offers Parent PLUS Refinancing: Yes

Credible Rating

View details

Variable: 6.46%+5
Fixed: 7.41%+55Get Rates

Fixed APR: 7.41%+5
Variable APR: 6.46%+5
Min. credit score: 700
Loan amount: $7,500 to $200,000
Loan terms (years): 5, 10, 15, 20
Repayment options: Immediate repayment, academic deferment, forbearance, loans discharged upon death or disability
Fees: None
Discounts: Autopay
Eligibility: Must be a U.S. citizen or permanent resident and submit two personal references
Customer service: Email, phone
Soft credit check: Yes
Cosigner release: After 36 months
Loan servicer: Granite State Management & Resources (GSM&R)
Max. Undergraduate Loan Balance: $150,000 to $249,000
Max. Graduate Loan Balance: $150,000 to $199,000
Offers Parent PLUS Refinancing : Yes

Credible Rating

View details

Variable: 3.53%+3
Fixed: 4.48%+35Get Rates

Fixed APR: 4.48%+3
Variable APR: 3.53%+3
Min. credit score: 680
Loan amount: $10,000 to $250,000
Loan terms (years): 5, 7, 10, 12, 15, 20
Repayment options: Forbearance
Fees: None
Discounts: None
Eligibility: Must be a U.S. citizen or permanent resident, have at least $15,000 in student loan debt, and have a bachelor’s degree or higher from an approved school
Customer service: Email, phone
Soft credit check: Yes
Cosigner release: No
Loan servicer: Mohela
Max. Undergraduate Loan Balance: $250,000
Max. Graduate Loan Balance: $250,000
Offers Parent PLUS Refinancing: Yes

Credible Rating

View details

Variable: 5.12%+4
Fixed: 5.18%+45Get Rates

Fixed APR: 5.18%+4
Variable APR: 5.12%+4
Min. credit score: 670
Loan amount: $5,000 to $250,000
Loan terms (years): 5, 10, 15, 20
Repayment options: Academic deferment, military deferment, forbearance
Fees: Late fee
Discounts: Autopay
Eligibility: Must be U.S. citizen or permanent resident
Customer service: Email, phone, chat
Soft credit check: Yes
Cosigner release: Yes
Max undergraduate loan balance: $250,000
Max graduate loan balance: $250,000
Offers Parent PLUS refinancing: Yes

Credible Rating

View details

Variable: N/A
Fixed: 3.94%+ 75Get Rates

Fixed APR: 3.94%+ 7
Variable APR: N/A
Min. credit score: 670
Loan amount: Up to $300,000
Loan terms (years): 5, 7, 10, 15, 20
Time to fund: Usually one business day
Repayment options: Academic deferral, military deferral, forbearance, death/disability discharge
Fees: None
Discounts: Autopay
Eligibility: Available in all 50 states
Customer service: Email, phone
Soft credit check: Yes
Cosigner release: After 24 months
Max. undergraduate loan balance: $300,000
Max. graduate balance: $300,000
Offers Parent PLUS loans: Yes
Min. income: None

Credible Rating

View details

Variable: N/A
Fixed: 5.49%+5Get Rates

Fixed APR: 5.49%+
Variable APR: N/A
Min. credit score: 670
Loan amount: $7,500 to $300,000
Loan terms (years): 5, 8, 12, 15
Repayment options: Does not disclose
Fees: None
Discounts: None
Eligibility: Must be a U.S. citizen and have and at least $7,500 in student loans
Customer service: Email, phone, chat
Soft credit check: Yes
Cosigner release: After 12 months
Loan servicer: PenFed
Max. Undergraduate Loan Balance: $300,000
Max. Graduate Loan Balance: $300,000
Offers Parent PLUS Refinancing: Yes

Credible Rating

View details

Variable: N/A
Fixed: 5.29%+5Get Rates

Fixed APR: 5.29%+
Variable APR: N/A
Min. credit score: 680
Loan amount: $7,500 to $250,000
Loan terms (years): 5, 10, 15
Repayment options: Academic deferment, military deferment, forbearance, loans discharged upon death or disability
Fees: None
Discounts: Autopay
Eligibility: Available in all 50 states; must also have at least $7,500 in student loans and a minimum income of $40,000
Customer service: Email, phone
Soft credit check: Does not disclose
Cosigner release: No
Loan servicer: Rhode Island Student Loan Authority
Max. Undergraduate Loan Balance: $150,000 - $249,000
Max. Graduate Loan Balance: $200,000 - $249,000
Offers Parent PLUS Refinancing: Yes

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Check Out: Best Student Loan Consolidation and Refinancing Companies

5. Take advantage of tax deductions and credits

Effectiveness: Medium

Two types of school-related tax deductions can help reduce the tax burden for students and recent graduates.

Student loan interest tax deduction

The student loan interest tax deduction allows you to reduce your taxable income by up to $2,500 for interest paid on student loans in the year for which you’re filing. In order to qualify for this deduction, you must:

Have paid interest on a loan in your name
Have been enrolled at least half-time in a degree program when you took out the loan
Be filing as a single taxpayer or as “married filing jointly”
Have a modified adjusted gross income (MAGI) of less than $80,000 as a single taxpayer or $160,000 if you’re filing jointly
Not have anybody else claiming you as a dependent on their tax return

Tuition and fees tax deduction

The second type of deduction is for up to $4,000 per year for tuition and fees. Unlike the student loan interest tax deduction, you can only claim this deduction for tax years in which you paid for educational expenses. This will generally only be an option while you’re in school, or if you go back to school while repaying your student loans.

To be eligible for this deduction you must have paid qualified education expenses of higher education (including tuition and fees, but not room, board, transportation, etc.) for yourself or an eligible student (your spouse or your dependent for whom you claim an exemption on your tax return).

If you’re still in school or have gone back to graduate school, you might also be eligible for tax credits, which directly reduce the amount of tax you owe.

Learn More: How Long It Takes to Pay Off Student Loans

6. Enroll in autopay

Effectiveness: Low

Many loan servicers offer an interest rate discount of 0.25% when you enroll in automatic payments. This is a small amount, but can add up to some major savings over the life of your loan.

Plus, autopay is generally a good idea, as it decreases the chance that you’ll get into trouble by forgetting a payment. Talk to your servicer about any interest rate discounts they offer that you can benefit from.

Check Out: How to Lower Your Student Loan Interest Rate

7. Use found money

Effectiveness: Depends

In some cases, people have a right to money or assets that they haven’t claimed or have forgotten about — if the money is rediscovered or claimed, it’s known as “found money.” If you’re able to secure any cash this way, you can then put it toward your student loans.

Having unclaimed property is more common than you might think. About one in 10 people have unclaimed cash or property that’s being held by treasuries or state governments, which is worth billions of dollars, according to the National Association of Unclaimed Property Administrators (NAUPA).

For example, you might be able to claim:

Checking or savings accounts
Stocks
Utility security deposits
Insurance payments or refunds
Uncashed dividends, payroll checks, or bonuses

You can search for any unclaimed property that you have a right to through your state’s unclaimed property office or through a multi-state database.

Tip: In addition to searching for unclaimed property, you could also consider starting a side hustle to increase your income. This way, you’ll have more funds to pay toward your student loans.

Some potential side hustles include:

Driving for Uber or Lyft
Selling your unwanted stuff on eBay or Craigslist
Delivering with Postmates or Grubhub
Starting a dog walking business
Renting out a room or your entire residence on Airbnb

Also be sure to run through your budget to see if there’s any extra cash you can put toward your student loans. Many free budgeting apps are available to help you keep track of your spending and savings opportunities, such as Mint and You Need a Budget.

Find Out: How to Pay off Student Loans in 5 Years

8. Cut from your budget

Effectiveness: Medium to high

The last thing you can do to really get your foot in the door when it comes to paying off your debt is to reduce your monthly spending wherever possible.

Whether it’s $50 less per month because you canceled cable or $200 of spare cash per month you didn’t spend going out to eat, look for extra wiggle room in your budget — and put that toward your student loans.

9. Make extra payments whenever you can

Effectiveness: Medium

In addition to paying more on your monthly bill, think about making extra payments. This can be particularly easy if you find yourself with extra cash.

Grandma sent you a check for your birthday? Put it toward your loans.
Got a one-time bonus at work for a job well done? Put it toward your loans.
Tax refund? Put it toward your loans.

Spending that money on your loans now will pay off down the road when you’ve paid less in interest — and therefore have more money to spend how you wish.

Tip: Depending on your credit, refinancing your student loans might get you a lower interest rate — which could save you money on interest and potentially help you pay off your loans faster.

You can use this student loan refinancing calculator to estimate how much you could save.

Step 1. Enter your loan balance

Loan balance ? Enter the remaining amount of the loans you’d like to refinance $

Step 2. Enter current loan information

Interest rate ? Enter the average annual interest rate of the loans you’d like to refinance %

Monthly payment ? Enter the monthly amount you currently pay on your loans (or enter remaining term) $

Remaining term ? Enter the amount of time left to repay your loan (or enter monthly payment) years

Step 3. Enter your new loan information to start calculating your savings

Interest rate ? Enter an estimated new interest rate. %

Monthly payment ? Enter the monthly amount to pay on your new loan (or enter new loan term) $

New loan term ? Enter the amount of time you have to repay your loan (or enter monthly payment) years

Lifetime Savings Increased Lifetime Cost $

New Monthly Payment $

Monthly Savings Increased Monthly Cost $

If you refinance your student loan at % interest rate, you can save will pay an additional $ monthly and pay off your loan by . The total cost of the new loan will be $.

Does refinancing make sense for you?
Compare offers from top refinancing lenders to determine your actual savings.

Check Personalized Rates

Checking rates won’t affect your credit score.

Learn More: How to Pay off Student Loans in 10 Years or Less

10. Make bi-weekly payments

Effectiveness: Medium

Another smart way to make extra payments and eliminate your debt is to pay your bill bi-monthly. Instead of making one payment every month, simply cut your bill in half and pay that amount every two weeks.

Even though this sounds like it won’t do much, this strategy adds one extra payment to your loans each year. That can make a significant difference — especially if you’re paying off a large balance.

11. Take advantage of your grace period

Effectiveness: Medium

Many student loans come with a grace period, which means you don’t have to make payments for a certain period of time after you leave school or drop below required enrollment. For example, most federal student loans come with a six-month grace period.

Keep in mind, though, that depending on the type of student loans you have, interest might continue to accrue on your loans while you’re in school, during your grace period, and during periods of deferment or forbearance. If you don’t make payments to cover the interest during these times, that interest could be added to your principal balance — this is known as capitalization.

Instead, consider making payments while this interest accrues, such as during your grace period. This way, you can avoid having unpaid interest capitalize — which will keep your student loan balance lower and more manageable.

Keep in mind: Federal student loan payments and interest accrual have been paused by the CARES Act through June 30, 2023. If you were in your grace period before this administrative forbearance began, any unpaid interest will capitalize after the pause ends.

Find Out: How to Pay Off $150,000+ in Student Loans

Student loan payment FAQs

Here are answers to some commonly asked questions about student loan payments:

How long does it typically take to pay off student loans?

The amount of time it takes to pay off student loans varies based on factors like the total amount you owe, your interest rate, and your repayment term. Federal student loans come with repayment terms ranging from 10 to 25 years. If you have private student loans, it’s common to have repayment terms ranging from five to 20 years.

What’s the quickest way to pay off student loans?

The quickest way to pay off student loans is to pay more than the minimum payment each month. Any extra amount you can apply toward your loan balance will help reduce the amount you owe, and the total interest you’ll pay. When you make an extra payment, be sure to ask your servicer to apply it to the loan principal.

When is my first student loan payment due?

For most federal student loans, your first student loan payment is due when your grace period ends — typically six months after you graduate, withdraw, or drop below half-time enrollment. To keep your interest costs lower, you can opt to make interest-only payments while you’re still in school.

If you have private loans, check with your lender. Some private lenders offer grace periods, while others will expect you to start making payments as soon as they disburse the funds.

Find your loan score

If you’re wondering how competitive your loan is, the loan score tool below can help. Just enter your APR, credit score, monthly payment, and remaining balance (estimates are fine) to see how your loan stacks up.

Loading widget - loan-score-tool

Keep Reading: How Often Can I Refinance My Student Loans?

More Resources:

Student Loan Repayment Calculator: Estimate Your Payoff Date
How to Tell If Refinancing Your Student Loans is a Good Idea
How to Pay Off $200,000 in Student Loans

Napala Pratini contributed to the reporting for this article.

About the author

Jamie Young

Jamie Young is an authority on personal finance. Her work has been featured by Time, Business Insider, Huffington Post, Forbes, CBS News, and more.

What is the fastest way to pay off student debt?

Pay More than Your Minimum Payment 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've satisfied future payments, and you'll pay off your loan faster.

How do you realistically pay off student loans?

How to Pay Off Student Loans in 10 Steps.

Get on a budget..

Find out your payoff date..

Pay more than the minimum payment..

Make some financial sacrifices..

Pay off student loans with the debt snowball..

Apply every raise and tax refund toward paying off your student loans..

Increase your income with a side hustle..

Is paying off student loans early worth it?

Paying off your private or federal loans early can help you save thousands of dollars over the life of your loan since you'll be paying less interest. If you do have high-interest debt, you can make your money work harder for you by refinancing your student loans.