How to Pay Off Your Student Loans Fast

"The Standard Repayment Plan—the plan that federal student loans automatically go on if you don’t choose an alternative—spans 10 years, but some options stretch payoff over 20, 25 or even 30 years. If you don’t want debt hanging over your head for a decade or longer, and you can make some room in your budget, there are strategies for paying it off faster," The Wall Street Journal reports. 

... "Another trick to pay off your student loan debt faster—and with minimal pain—is to make payments on a biweekly schedule, rather than a monthly one. When you pay every two weeks, you’ll end up making 26 half-payments in a year, or 13 full payments. That is one full payment more than the 12 you’d make on a monthly payment schedule without much extra legwork on your part."

"'Paying twice a month would help chip away at that debt more quickly,' says Karen McCarthy, who heads up public policy and federal relations for the National Association of Student Financial Aid Administrators."

... "Signing up for autopay is also helpful, since most loan servicers offer a 0.25 percentage point reduction on your interest rate for doing so. While this might not seem like much, every little bit counts when you’re trying to save money on your loans and pay off your debt faster. Enabling autopay can also help you avoid missing payments, as long as you have sufficient funds in your bank account."

"'Borrowers should keep in mind the timing of the automatic deduction, ensure they have the funds available in their checking account and account for it in their monthly budgets so they’re not caught off guard,' says McCarthy."

NASFAA's "Notable Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Articles included under the notable headlines section are not written by NASFAA, but rather by external sources. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.


Publication Date: 9/10/2023

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