The fastest way to pay off student loans includespaying interest while in school,using autopay and making payments biweekly. Make extra payments to principal when you can. Consider refinancing. If not,stick to the standard repayment plan rather than income-driven plans or using forbearance.
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What are the best ways to pay off student loans?
Another method you can try with paying off student loans is switching from monthly to biweekly payments. Similar to making biweekly mortgage payments, this tactic means you’ll have to make one extra loan payment per year.
How long will it take to pay off my student loans?
If you stick with the default, or standard, repayment plan for federal loans, you will have them paid off in 10 years. As long as the monthly payment is something you can afford, this is the easiest way to pay off your student loans.
What happens if I pay extra on my student loans?
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鈥檝e satisfied future payments, and you鈥檒l pay off your loan faster. Ask your servicer if the additional payment amount can be allocated to your higher interest loans first.
Should you refinance your student loan debt?
Opting for a shorter term may increase your monthly payment. But it will help you pay the debt faster and save money on interest. For example, refinancing $50,000 from 8.5% interest to 4.5% could let you pay off your student loan debt nearly two years faster.