Student loan debt can be stressful and feel overwhelming. There's no student loan that's one-size-fits all, which can make managing them just as stressful and overwhelming, especially if you have multiple loans. The thing is: A quick internet search will show many different suggestions for managing your student loans and your debt — from spreadsheets to paying more.
One truth that matters though is the stage of student loan debt you're in. For example, are you still in school planning for repayment, in the middle of your grace period, or perhaps you're experiencing financial hardships? Are there medical issues you're dealing with or maybe you're navigating through employment changes? You could even be in the midst of currently repaying your loans and need additional repayment and pay-off strategies.
The thing is this: Whatever stage of student loan debt you're in, you can take better control of your situation with a plan. There’s no one right way to pay down your student loans. It may seem overwhelming at first, but with careful planning and a proactive approach, you can take control of your financial situation. Knowing how many loans you have, your loan service provider, and how much you owe is a great start.
Consider focusing on these tips and strategies as you pay off your loans—you have options.
1. Understand student loan terms and what they mean.
- Subsidized loans: Also known as federal student loans, these are offered by the government and usually have fixed interest rates. They offer flexible repayment options and often come with borrower protections, such as loan forgiveness programs and income-driven repayment plans.
- Unsubsidized loans: Also known as private loans, these are usually obtained through a bank, credit union, or other lender. Interest rates can vary and are typically higher than federal loans. Unsubsidized loans usually have fewer repayment options and borrower protections.
- Interest rate: When you borrow money, you're often charged interest on top of the principal amount of money you borrowed. This is represented as a percentage. A higher interest rate on your student loan means that over time, you’ll pay more interest–on top of what you originally borrowed. A lower interest rate means you’ll pay less interest, which can make it easier to pay down your loans faster.
2. Organize and consider consolidating
Write down all your loan information—lender names and contact info, interest rates, payment dates, balances, and whether they’re private or federal—as these may vary for each loan. Being able to see the full picture of your student debt quickly and easily can help you manage everything more effectively.
If you have more than one loan, you could consider student loan consolidation to help streamline your payments. There are two types: direct consolidation and private refinancing. Direct consolidation is offered by the U.S. Department of Education and is for federal loans. Private financing also involves combining all your loans into one, but by taking out a new loan with a private lender (with a possibility of a lower interest rate) to pay them off quicker. Each has its pros, and cons—like longer repayment periods or possible loss of borrower benefits, so do your research and see if either option is best for you.
3. Take advantage of grace periods
Some federal student loans have a brief grace period after graduation when no payments are due. If you’re able, consider making payments during this period to get a jump-start on your balance. If you're worried about not having stable income after your grace period and about making your payments on time, if you're able, consider putting some money aside to save for that time. Once the grace period ends, you’ll need to start making payments unless you qualify for a deferment related to unemployment or health problems.
4. Make your minimum monthly payments (and pay more, if you can)
It’s important to make your minimum payment on time each month to avoid additional fees and negative impacts to your credit score. If you can find the room in your budget, making additional payments each month or whenever you can—like when you get a bonus or overtime pay—can help you make a major dent in your student debt, especially when you apply those payments to the principal.
If you’ve done everything you can to balance your budget and cut back on your expenses and still find that making your minimum payment is out of reach, you may want to check your eligibility for an income-based repayment plan.
5. Avoid late payments
The most important element credit agencies consider when figuring your credit score is your payment history. Don’t ignore the payment-due letters you receive for student loans or other debt.
For federal student loans, delinquencies of 90 days or more may be reported to credit bureaus — private lenders could possibly report late payments sooner. Late payments or missing payments can negatively impact your credit score and report, so it's a good idea to make a plan or arrangements for repayment. If necessary and eligible, or if you're experiencing economic hardships, consider a temporary deferment or forbearance. If you're continuing your education (and you're enrolled at least part-time), check with your provider to see if an in-school deferment is available. Do your research to determine if either avenue is best for you.
6. Sign up for automatic payments
Setting up autopay is a great way to avoid late payments and can help you stay on track with your budget. Plus, some loan servicers may offer a discount or incentive if you choose that option.7. Renegotiate your payment plan
If you’re in default or having trouble making your minimum payments, call your loan servicer and explain your situation. You could inquire about your eligibility for an income-based repayment option that's based on your annual income (and possibly other factors). They might be able to work out a payment plan you can manage. Remember, try not to miss payments or fall behind, or your credit score could suffer.
8. Research employer benefits
Ask your employer about student loan repayment assistance. Many companies recognize the financial burden their employees face, and they’ve started providing benefits aimed at helping employees chip away at their debt. These benefits generally fit into two categories, direct benefits, where employers contribute money monthly toward your eligible student loans (like tuition reimbursement), and retirement benefits, where employers help you earn their retirement match—just by paying your student loans that month.9. Check eligibility for an income payment option
After July 1, 2026, the Repayment Assistance Plan (RAP) is the only Income-Driven Repayment (IDR) plan available for federal student loan borrowers.
10. Check eligibility for Public Service Loan Forgiveness (PSLF)
Public Service Loan Forgiveness is a federal program created for people in public service jobs—available to certain federal, state, local, tribal, and nonprofit workers with student loans. PSLF plans offer complete loan forgiveness for employees who work full-time for a qualifying public service or nonprofit employer and have made the equivalent of 120 qualifying monthly payments (or 10 years’ worth of payments) under an accepted repayment plan.2 Refinancing to a private loan or missing payments disqualifies you for this program.
Income-based plans qualify; however, an income-based plan alone will not suffice. You must also work for a qualifying public service employer and make 120 separate (and on-time) monthly payments while holding eligible federal student loans3. PSLF also remains in place under RAP.
Keep up to date with current changes and do your research to determine if eligibility rules apply to you.