Managing of student loan debt can be stressful and feel overwhelming, especially if you’ve taken out multiple loans. However, you can take control of your situation with a plan. Knowing how many loans you have, where you have them, and how much you owe is a great start.
Consider these tips and strategies as you pay off your loans—you have options.
1. Get organized and consider consolidating
Write down all your loan information—lender names and contact info, interest rates, payment dates, balances, and whether or not 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 of your loans into one, but by taking out a new loan with a private lender (with a possibility of lower interest rate) to pay them off quicker. Each has it's 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.
2. 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.
3. Make additional payments
There's no penalty for paying your loans early. If you have a little extra money in your budget, consider making an additional payment or a larger monthly payment. However, pay attention to how the overpayment will be applied to the loan—toward interest, principal, or next month’s bill. To help pay down your loans quicker, ask your loan servicer to apply the extra money to your principal balance.
4. 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 economical 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.
5. 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 elect that option.6. 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 options 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.
7. Research employer benefits
Ask your employer about student loan repayment assistance. Some employers offer a benefit that contributes money to help pay off an employee’s student debt.8. Consider federal repayment programs
The Saving on a Valuable Education (SAVE) repayment plan, formerly revised Pay As You Earn (PAYE), is income based and allows lower monthly payments. However, the full implementation of the program has been temporarily blocked (with borrowers in forbearance). It would be advantageous to stay up-to-date on changes. Under the The One Big Beautiful Bill Act (OBBB), or the Big Beautiful Bill, most existing income-driven repayment options will be replaced with two primary choices for future borrowers after July 1, 2026: a standard repayment plan (which isn't linked to income) or the Repayment Assistance Plan (RAP).9. See if you’re eligible for Public Service Loan Forgiveness
Public Service Loan Forgiveness is a federal program created for people in public service jobs. Borrowers who work full time for 10 years in military, government, or non-profit jobs with a minimum of 10 years of payments could have their federal loan balances forgiven. Refinancing to a private loan or missing payments disqualifies you for this program. Keep up to date with current changes and do your research to determine if eligibility rules apply to you.