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Student Loans Student Loan Repayment

How to Pay Off Student Loans Fast: 12 Strategies to Become Debt-Free Sooner

Paying off student loans fast isn’t just a dream; it’s a smart financial move that saves you money and reduces stress. Whether you’re just starting repayment or feeling stuck in a long-term plan, you can take actionable steps today to pay off your student loans faster. From making extra payments to using employer benefits, this guide shares the best strategies to help you become debt-free sooner.

Here’s how to pay off student loans quickly and reach your financial goals faster.

Table of Contents

12 best ways to pay off student loans fast

If you’re serious about paying off student loans faster, these strategies can help you save money and shave years off your repayment schedule.

1. Pay more than the minimum

Making extra payments directly toward your principal balance can significantly reduce the total interest you owe.


Tip

Set up autopay for a higher amount than your minimum payment to stay consistent.


2. Refinance your student loans

If you qualify for a lower interest rate through refinancing, you could reduce both your monthly payment and the total interest paid.


Caution:

Refinancing federal loans means losing access to income-driven repayment plans and forgiveness options.


Credible is our top choice for comparing student loan refinance options. It’s a free online marketplace that lets you shop actual prequalified rates from multiple top lenders without affecting your credit score

Create a budget, and then prioritize loans with the highest interest rates and pay more than the minimum. Consolidating federal loans into private loans is not the best option for many borrowers.

Jim McCarthy, CFP®
Jim McCarthy , CFP®, ChFC®

3. Make biweekly payments

Splitting your monthly payment in half and paying every two weeks results in one extra payment per year — a simple trick that can reduce your repayment timeline without a big impact on your budget.

4. Pay off high-interest loans first

Prioritize extra payments toward loans with the highest interest rates. This method, called the debt avalanche, can save you the most money over time.

5. Take advantage of interest-rate reductions

Many lenders offer a 0.25% interest rate discount if you enroll in automatic payments. Some may offer additional reductions for on-time payment streaks.

6. Create a budget

Building a budget that prioritizes debt repayment can help you identify areas to cut back and allocate extra cash toward student loans.

7. Work for an employer with repayment assistance

Some employers offer student loan repayment benefits, either through signing bonuses, matching contributions, or direct payments. It’s worth asking about.

8. Avoid extended repayment terms

Choosing longer repayment plans can lower monthly payments but cost you thousands more in interest. Stick to shorter terms if you want to pay off loans faster.

9. Use tax deductions

If you qualify, you can deduct up to $2,500 of student loan interest on your taxes, reducing your taxable income and freeing up extra cash.

10. Make lump-sum payments

Got a tax refund, bonus, or inheritance? Applying a lump sum toward your loans can knock out a big chunk of principal all at once.

11. Use loan forgiveness programs

If you qualify for Public Service Loan Forgiveness or another forgiveness program, you could eliminate part of your debt after making qualifying payments.

12. Join the military

Military service offers multiple student loan relief programs, including direct repayment benefits and Public Service Loan Forgiveness eligibility.

How long does it take to pay off student loans?

The average borrower takes more than 20 years to pay off student loans, according to the Education Data Initiative.

However, timelines vary based on your repayment plan:

If you make extra payments or use the strategies above, you can drastically cut down that timeline.

What is the fastest way to pay off student loans?

The fastest way to pay off student loans is to:

  • Make large lump-sum payments when possible
  • Refinance to a lower interest rate (only if you won’t need federal protections)
  • Pay more than the minimum every month
  • Set up biweekly payments to make an extra payment each year

Small changes add up over time—and big payments, when possible, can make a massive dent.

Break your budget into “must-haves,” or needs, versus “nice-to-haves,” or wants. Look to reduce, suspend, or eliminate items in the “nice-to-have” category to create extra cash to pay off loans.

Jim McCarthy, CFP®
Jim McCarthy , CFP®, ChFC®

How to stay motivated while paying off student loans fast

Paying off student loans is a long game. Stay motivated by:

  • Setting milestones: Celebrate when you hit smaller goals ($1,000, $5,000, then $10,000 paid off)
  • Tracking your progress: Use an app or spreadsheet to see how far you’ve come
  • Focusing on your future: Visualize what life will look like without student loan payments
  • Rewarding yourself: Plan small, budget-friendly rewards when you hit repayment goals

Mistakes to avoid when paying off student loans quickly

If you’re aggressively repaying loans, avoid these pitfalls:

  • Skipping your emergency fund: Always keep some cash on hand for unexpected expenses.
  • Missing payments: Making extra payments is great—missing required payments is not.
  • Tapping retirement accounts: Early withdrawals can hurt your long-term financial health.
  • Ignoring refinancing opportunities: A lower rate could help you save even more.

Additional resources

FAQ

How can I reduce the time it takes to pay off my student loans?

You can get a shorter loan term and make additional payments to reduce the time it takes to pay off your student loans. You’ll still be making monthly payments for several years, but staying consistent will make you debt-free sooner.

How long does it usually take to pay off student loans if I make extra payments?

You can save several years of time by making extra payments. The amount of time it will take depends on your current loan, how much extra cash you pay each month, and other factors.

Recap: How to pay off student loans faster

Repayment strategyBest if you
Pay more than the minimumHave extra cash to spare
Refinance your student loansHave a high rate or lengthy loan terms
Make biweekly paymentsGet a consistent paycheck every two weeks
Pay off high-interest loans firstHave multiple student loans
Take advantage of interest rate reductionsCan qualify for lower rates
Create a budgetRarely track your expenses and progress toward long-term goals
Work for an employer with repayment assistanceWork with an employer that offers such a program
Avoid extended repayment termsCan afford standard monthly payments on your current loan
Use tax deductionsDon’t itemize your tax deductions
Make lump-sum paymentsHave extra money or receive an inheritance
Use loan forgiveness programsAre eligible for forgiveness
Join the militaryAre in the military or want to join