So, if you're trying to crush your student loan debt, you’re not alone. Although managing your overall personal budget requires considering many different factors, including interest rates, outstanding balances, due dates, and/or collateral, we at RISLA are not financial advisors. But we do know student loans. Below are some helpful things we’ve learned over decades of experience to help you pay off your student loan(s) early.
The good news. Paying off your loans faster is definitely doable. It just takes some strategy, discipline, time, and maybe a few lifestyle swaps. Whether you're aiming to be debt-free in record time or just want to save on interest, these tips can help get you there.
We get it - lower monthly payments are tempting. But stretching out your repayment timeline through income-based or extended plans often means shelling out way more in interest. If you can swing it, stick with the standard repayment.
Example: Borrow $30,000 at 5% interest and you’ll pay around $319/month for 10 years, with about $8,200 in interest. Switch to a 20-year plan? Sure, your payment drops to $198/month, but you’ll fork over more than $17,500 in interest. Ouch. Use a loan calculator to view various scenarios that may work for you.
If you have solid credit and a steady income, refinancing could lower your interest rate and save you money, especially if you keep or shorten your loan term. Do your homework first! Get your questions answered by reading our Refinancing Guide.
Even small extra payments can make a big difference over time. Whether it’s an extra few dollars or a little more from a side hustle, putting more than the minimum toward your student loans each month can help reduce the amount of interest you pay and shorten your repayment timeline.
🎯Pro Tip: Tell your loan servicer to apply extra payments toward your principal, not next month’s bill. If your servicer does not allow you to do this, you may want to give more consideration to refinancing.
If you want to put more money towards your loans, you’ve got to find the cash. Start small:
Those little swaps can free up hundreds over the course of a year.
It’s much harder to see financial changes if you don’t track them. Your banking app may have a budgeting tool you can use or even a simple spreadsheet to map out where your money goes each month will do the job. Seeing it all in one place makes it way easier to find areas to cut and redirect toward your debt.
Want an easy starting point? Try our budgeting calculator.
With remote and gig work more accessible than ever, it’s easier to find ways to earn extra income on your own terms. Whether it's freelance writing, pet sitting, tutoring, or driving for a delivery app, even a few hundred dollars a month can make a big difference when applied directly to your loan balance.
Example: Earning $300/month from a side hustle equals $3,600/year, which can significantly reduce your repayment timeline, depending on your loan size and rate.
Most servicers offer a small interest rate discount—usually 0.25%—if you enroll in autopay. It’s a small drop, but it adds up over time and also ensures you’re never late on a payment (which protects your credit). If your servicer does not allow you to do this, you may want to give more consideration to refinancing.
If your car payment is eating up $400+ a month, consider downsizing. A reliable, used car (or no car at all, if you can swing it) can free up serious money. Redirect even half that car payment to your loans and you’ll see your balance shrink faster than you think.
9. Use Windfalls Wisely
Tax refund? Work bonus? Graduation money from your aunt? Instead of spending it all, toss a chunk toward your loans. Even a few big one-time payments can make a huge dent in your balance (and your timeline).
Stay focused on eliminating your student debt so that your student loan payments can be applied to your important life goals, such as purchasing a home, saving for retirement, and more.