It’s difficult to finance higher education, therefore parents or students frequently ask for government loans to cover the full expense. While using student loans might be advantageous, it is important to remember that these loans must be repaid after the student years. After the grace period, one must immediately begin making the monthly installments. This process typically takes years, and it always feels like a great weight. However, the sooner you pay off the debt, the better, and you’ll be glad you did once you’re completely debt-free.

What is a student loan?

A student loan is a type of school loan used to pay for expenditures associated with higher education or post-secondary education. Education loans are designed to pay for living expenses while the borrower is pursuing a degree, as well as tuition, books, and supplies. Payments are frequently postponed while students are enrolled in school, and depending on the lender, they may occasionally be postponed for an additional six months after receiving a degree. Sometimes, this time frame is referred to as a “grace interval.

How can I pay off my loan faster?

There are so many reasons why someone would want to pay off their student loans as quickly as possible. Here are a few things to think about and it is a prudent thing to do.

Make additional payments properly.

There is never a fee associated with making extra payments or early repayment of student loans. However, there is a catch with prepayment: Student loan servicers, who are in charge of billing you, may add the additional money to the payment due the following month. That moves forward the deadline for payment, but it won’t result in quicker loan repayment. Instead, tell your servicer to apply any overpayments to your current amount and to maintain the following month’s due date as scheduled when you contact them online, via phone, or by letter. You can pay more at any time during the month, or you can pay off your student loans in full on the due date. Either option can help you save a lot of money.

Follow the normal payback schedule

Unless you decide otherwise, the government automatically establishes a repayment schedule for federal student loans. Staying on the normal repayment plan is the quickest option to pay off government debts if you are unable to make significant additional installments.

Income-driven repayment options are available for federal student loans, which may result in a longer payback period. Additionally, depending on your debt, you can combine student loans, which extends repayment over a maximum of years.

Eliminate capitalized interest.

While you’re in school, during your grace period, and during any periods of forbearance or postponement, interest will continue to accrue on your loans unless they are government-subsidized. When repayment starts, that interest starts to compound, which causes your debt to increase and your interest payments to increase. To prevent capitalization, think about paying the interest as it accrues every month. Alternately, pay your interest in full before the grace period or delay expires. That will result in a reduced sum to pay off, however, it won’t instantly help accelerate the payback

Activate autopay

Another possible approach to reduce the interest rate on your student loans if you don’t want to refinance them is to enroll in autopay. If you allow federal student loan servicers to automatically take payments from your bank account, they will reduce the interest rate by one-quarter point. A lot of private lenders also provide auto-pay deductions. The savings from this discount would probably be modest; based on a repayment schedule, lowering a loan’s interest rate will save you a small sum altogether. But it’s still more money that will help with the quick repayment of college loans

To sign up or learn if there is a discount for autopay, get in touch with your servicer.

If you have strong credit and reliable employment, refinance

You may pay off student loans quickly without making additional payments by refinancing them. By refinancing, several student loans are replaced with one private loan that, ideally, has a reduced interest rate. Select a new loan term that is less than the amount of time left on your existing loans to expedite payback. Your monthly payment can rise if you choose a shorter term. However, it will enable you to pay off the loan more quickly and save on interest.

If you qualify for refinancing, you should have a decent credit score, a reliable source of income, and a low debt-to-income ratio. If you want or need programs like income-driven repayment and Public Service Loan Forgiveness, you shouldn’t refinance federal student loans.


Before taking out student loans that might later turn into a crippling burden, students and their families should carefully weigh all of their choices. After graduating, the student might look for a job that assists with student loan debt as a perk.