One of the best ways to pay off student loans is to make more than the minimum payment each month. This will reduce the interest that you’ll owe and allow you to quickly remove the balance. Here are some tips for helping you pay off your student loans more quickly.

 

Be Prompt

You never have to pay a penalty for making more than the minimum payment each month, and there’s no limit on how much you can pay early. However, there’s a catch: Your student loan servicer may add that extra amount to the next payment.

 

Unfortunately, this method won’t help you pay off your loans faster. Instead, you should instruct your servicer to apply overpayments to your outstanding balance and keep the next month’s due date the same.

 

You can also make a lump-sum payment on the due date or an additional payment at any point throughout the month. Both options can help you save a lot of money.

 

Use Autopay

Federal student loan servicers can lower your interest rate by allowing you to make automatic payments from your bank account. Other private lenders also offer this type of deduction.

 

This type of deduction isn’t likely to make a huge difference in your student loan payments. However, it can help you pay off your loans faster by reducing the interest rate. For instance, if you have a $10,000 loan with a 4.25% interest rate, you could save about $144.

 

Pay Biweekly

One of the easiest ways to pay off student loans is by making half of your payments every two weeks. This method will allow you to avoid making one full payment each month.

 

By making an extra payment each year, you’ll be able to shave off a significant amount of time from your repayment schedule. A student loan payment calculator can help you estimate how much money and time you can save by making half of your payments every two weeks.

 

Stick to the Normal Plan

If you have federal student loans, the government will put them on a 10-year repayment schedule unless you choose to change it. The fastest way to pay off these loans is through the standard repayment plan.

 

Federal student loans come with income-driven repayment plans that can extend the life of your loans by up to 25 years. You can also consolidate your loans and lengthen your repayment to a maximum of 30 years.

 

If you don’t consolidate or extend your loans, the standard repayment plan can help you get on track to be debt-free.