20 Strategies to Pay Off Student Loans Quickly
Crush your student loans fast with these 20 smart, practical, and sometimes unexpected strategies that will save you money and time.
- Sophia Zapanta
- 6 min read
Student loans can feel like a financial black hole, but the right approach can help you escape debt faster than you think. From making small changes to your spending habits to hacking repayment plans, there are plenty of ways to speed up the process. These 20 strategies will help you take control of your debt and finally break free.
1. Make Extra Payments Whenever Possible
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Every extra dollar you put toward your loans reduces the principal, saving you money on interest. Even small additional payments add up over time and shorten your repayment period. Use windfalls like tax refunds, bonuses, or side hustle income to make lump-sum payments. The faster you lower your balance, the less you pay overall.
2. Refinance for a Lower Interest Rate
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If your credit score has improved since taking out your loans, refinancing can get you a lower interest rate. A lower rate means more of your payment goes toward the principal instead of interest. Compare lenders to find the best deal and avoid fees that cancel out your savings. Just make sure refinancing won’t cost you federal loan benefits like forgiveness or income-driven repayment plans.
3. Use the Biweekly Payment Trick
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Instead of making one full payment a month, split it in half and pay every two weeks. This results in 26 half-payments a year, which equals 13 full payments instead of 12. That extra payment each year helps you pay off your loan faster without feeling the pinch. It’s an effortless way to chip away at your debt.
4. Live Like a Broke College Student for a Little Longer
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Just because you graduated doesn’t mean you need to upgrade your lifestyle right away. Keep living cheaply—stick to roommates, cook at home, and resist unnecessary splurges. Every dollar you don’t spend is a dollar you can throw at your loans. The sacrifice is temporary, but the financial freedom lasts forever.
5. Get a Side Hustle
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A little extra income can go a long way in tackling your student debt. Whether freelancing, driving for a rideshare service, or selling things online, a side hustle boosts your loan payments. Funnel all extra earnings straight into your loans to pay them off faster. Bonus: You’ll develop new skills and maybe even find a passion that makes you extra cash long-term.
6. Take Advantage of Employer Repayment Assistance
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Some companies offer student loan repayment benefits as part of their compensation package. If you’re job hunting, look for employers who help pay off loans—it’s basically free money. Already employed? Ask HR if this perk exists or if they’d consider adding it. It’s worth a shot, and you could save thousands.
7. Round Up Your Payments
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Instead of paying exactly what’s due, round up to the nearest $50 or $100. It’s a painless way to pay extra without feeling the financial sting. Over time, these small boosts reduce your balance significantly. Think of it as sneaking in extra payments without even trying.
8. Use Cash Windfalls Wisely
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Tax refunds, work bonuses, and unexpected cash gifts are perfect for lump-sum payments on your loans. Instead of spending that money on a vacation or a new gadget, throw it at your debt. You’ll cut down your loan term without changing your monthly budget. The future you will thank you for the smart move.
9. Cut Unnecessary Subscriptions
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Streaming services, gym memberships you don’t use, and forgotten app subscriptions drain your wallet. Cancel the ones you don’t need and redirect that money to your loan payments. You won’t even miss them after a while, but you’ll love seeing your balance drop—less Netflix now, more financial freedom later.
10. Make Payments While Still in School
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Most student loans don’t require payments while you’re in school, but interest still piles up. Making even small payments during college can prevent interest from ballooning. Even just $20 a month can reduce your future debt load. Think of it as buying yourself a smaller bill after graduation.
11. Join a Loan Forgiveness Program
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If you work in public service, education, or healthcare, you might qualify for loan forgiveness. Programs like Public Service Loan Forgiveness (PSLF) can erase your debt after 10 years of payments. It takes commitment, but it’s one of the best ways to eliminate student loans. Do your research and see if you qualify—you could save tens of thousands.
12. Automate Your Payments
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Many lenders offer interest rate discounts if you enroll in autopay. Besides saving money, automation ensures you never miss a payment or rack up late fees. Set it, forget it, and watch your loan balance shrink effortlessly. It’s the lazy person’s secret to debt payoff.
13. Avoid Loan Forbearance and Deferment
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Pausing payments might sound like a relief, but interest continues to build. This means you’ll owe even more once you start paying again. If you’re struggling, look for income-driven repayment options instead. The longer you delay, the harder it gets to dig out.
14. Use the Debt Snowball or Avalanche Method
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The snowball method pays off small loans first for quick wins, while the avalanche tackles high-interest debt first for maximum savings. Pick the strategy that keeps you motivated and stick with it. Either way, you’ll gain momentum as each loan disappears. Seeing progress keeps you focused and fired up.
15. Pay More Than the Minimum
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Only making the minimum payment keeps you in debt for decades. Even adding just $20 or $50 more each month shaves years off your repayment. Interest compounds against you, so the faster you pay, the less you owe. Your future self will be so grateful.
16. Consider Moving to a Cheaper Area
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If you’re open to relocation, some cities have a much lower cost of living. Spending less on rent and expenses means you can throw more at your loans. Some places even offer student loan incentives to attract workers. A move now could mean debt freedom way sooner.
17. Use Found Money Wisely
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Rebates, cashback rewards, and class-action settlements may not seem like much, but they add up. Treat them as free money for your loans rather than spending on extras. Every unexpected dollar is a step closer to debt-free living. You won’t miss what you never had.
18. Set Clear Payoff Goals
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A vague plan leads to slow progress, but a clear goal keeps you motivated. Set a specific debt-free date and track your progress. Seeing the numbers drop makes it easier to stay disciplined. Plus, you’ll feel unstoppable once you’re halfway there.
19. Rent Out a Spare Room or Space
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If you have an extra bedroom, consider renting it out to help with loan payments. Even short-term rentals on platforms like Airbnb can bring in serious extra cash. Your loan balance won’t know what hit it. A temporary roommate could mean a permanent financial boost.
20. Change Your Mindset About Debt
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Paying off student loans isn’t just about numbers—it’s about taking control of your future. Shift your focus from feeling burdened to feeling empowered. Every extra payment is a step toward freedom and financial independence. The faster you tackle it, the sooner you get to live life on your terms.