Next to a mortgage, student loans might be the largest debt you carry in your life. How long it takes a specific person to pay off their loans depends on their balance, interest rate, income, and any other financial obligations they may have.
But there are steps borrowers can take to pay off their loan balance faster.
Start paying right away
If you have federal student loans, you typically receive in-school deferment plus a six-month grace period after you graduate before you need to start making loan payments. During that break, interest doesn't accrue for Direct Subsidized Loans, but it does for Unsubsidized Loans.
Making student loan payments while you're still in school or during your grace period could save you thousands in interest.
Pay more than the minimum
Perhaps an obvious strategy, but paying more than the minimum on your student loans is the easiest way to get rid of them faster. If money is tight, you can still put any windfalls, tax refunds or bonuses toward your student loan payment.
Whether it's $20 or $100 more each month, every bit over the minimum makes a difference. Just make sure to choose for the funds to be applied toward your loan principal.
Sign up for autopay
Enrolling in autopay with your student loan servicer guarantees you'll never miss a payment, which is important for maintaining good credit.
Most loan servicers will offer an interest rate discount of 0.25% if you sign up for automatic payments. That might not seem like much, but it can mean considerable savings over time when you're spending years paying off your student loans.
Refinance your loans
Refinancing your student loans means taking out a new loan from a private lender to pay off your existing federal or private student loans. While many people refinance to get a lower interest rate or combine multiple loans into one, you can also do it to get a shorter loan term.
That means larger monthly payments, but fewer of them.
Refinancing is generally a good idea for people with good or excellent credit but Earnest accepts applicants with a 665 credit score. Borrowers can skip one payment a year without penalties.
If you need a co-signer for refinancing, consider Citizens. It allows borrowers to release their co-signer after making 36 consecutive on-time payments.
Citizens™ Student Loans
APR
3.24% to 14.99% APR with autopay discount (Undergraduate New Loan). Other rates and loan types are available. Visit Citizen's website for full details.
Loan types
Undergraduate, graduate, parent loans, Master's degrees, MBAs, law school, medical school and dental school loans.
Loan amounts
Minimum is $1,000; Maximum amount depends on the type of degree (graduate or undergrad, MBA, Law and Healthcare)
Loan terms
5, 10, 15 years
Borrower protections
Up to 12 months of forbearance
Co-signer required?
No
Offer student loan refinancing?
Yes - click here for details
Terms apply.
Earnest
Eligible borrowers
Undergraduate and graduate students, parents, half-time students, international and DACA students
Loan amounts
$1,000 minimum (or up to state) for new loans, $5,000 minimum for refinance; maximum up to cost of attendance for new loans, $550,000 for refinance loans
Loan terms
Range from 5 to 15 years
Loan types
Variable and fixed
Borrower protections
9-month grace period
Co-signer required?
No
Offer student loan refinancing?
Yes - click here for details
Terms apply.
Actual rate will vary based on your financial profile. Fixed annual percentage rates (APR) range from 4.60% APR to 10.24% APR (4.35% - 9.99% with .25% auto pay discount). Variable annual percentage rates (APR) range from 6.13% APR to 10.24% APR (5.88% - 9.99% with .25% auto pay discount). Earnest variable interest rate student loan refinance loans are based on a publicly available index, the 30-day Average Secured Overnight Financing Rate (SOFR) published by the Federal Reserve Bank of New York. The variable rate is based on the rate published on the 25th day, or the next business day, of the preceding calendar month, rounded to the nearest hundredth of a percent. The rate will not increase more than once a month, but there is no limit on the amount that the rate could increase at one time. Please note, we are not able to offer variable rate loans in AK, IL, MN, NH, OH, TN, and TX. Our lowest rates are only available for our most credit qualified borrowers and require selection of our shortest term offered (5 years) and enrollment in our .25% auto pay discount from a checking or savings account. Enrolling in autopay is not required as a condition for approval.
Ask your employer about student loan repayment programs
Did you know your employer can contribute up to $5,250 annually toward your student loan debt without it counting as taxable wages? Student loan repayment programs were initially launched during the COVID-19 pandemic and were made permanent by the One Big Beautiful Bill Act.
A growing number of companies are adding student loan paydown to their benefits packages, including Ally Bank, Fidelity Investments, Google, Nvidia, and SoFi.
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At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every student loan article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of student loan products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
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