How to Pay Off Student Loans Fast

2. Get on a budget.

Budgeting is a total game changer. If you’re not already doing this, now’s the time to make a budget and stick to it. A zero-based monthly budget will show you exactly where your money is going and where you can cut back. (I’m looking at you, Postmates orders. Those food deliveries can add up calorically and financially!)

When you stick to a budget, you’ll even find “extra” money you didn’t know you had, which is a way better plan than hoping to find $10 in an old winter coat (though I wouldn’t turn my nose up at some surprise cash in my pocket). Once you start throwing all that extra money at your student loans each month, you’ll start making progress in no time!

Pro tip: The easiest way to budget is with our free budgeting app, EveryDollar. You can even put a line item in your budget for each student loan you’re paying off. That way, you’ll actually see the progress as you keep crushing that student loan debt—and it’ll feel pretty sweet.

3. Cut back your spending.

Remember how I said paying off my student loans took some sacrifice? Here’s where it comes into play.

Look at your lifestyle. What extra stuff have you been paying for that you can do without? Bye bye, cable package. See ya, bougie subscription boxes. Ditch the $7 oat milk lattes and brew your own coffee at home. Eat your leftovers (they’re not that bad) or meal prep for the week instead of spending $10–20 on lunch.

Trust me—there are plenty of creative ways to save. It starts with being willing to make some temporary sacrifices for some long-term gains.

4. Increase your income.

If your biggest hang-up to paying off your student loans is not making enough money, it’s time to boost that income so you can boost that monthly payment!

Pick up a part-time job on the nights or weekends that will help you stack cash quickly. There are also a ton of side hustle options out there. When I was paying off debt, I sold baked goods, trained dogs, and gave music lessons. These side hustles can be a lot of work, but they don’t have to be forever.

But let me be clear: While side hustles helped me and my husband go further faster, raising our primary income is what really helped us make progress. So, if your main job doesn’t pay enough, fix that first. Do what you need to grow your salary—whether that’s asking for a raise, working overtime, or finding a better-paying job.

And don’t hit me with the “I don’t have time” excuse. If you have time to hang out with your friends, scroll Instagram, or watch Netflix, you have time to make more money. The sooner you kick that student loan debt out of your life, the sooner you can move on with your life.

5. Refinance your loans (only if it makes sense).

Refinancing takes your student loans (usually either private or a mix of federal and private) and turns them into a new loan—with a new interest rate and new repayment terms. Keep in mind, you can only refinance your student loans through a private lender.

With a refinance, the goal is to secure a better interest rate and better payment terms. But before you go running into the arms of an all-too-eager lender, know that refinancing is not the right move for everyone. And it really only makes sense if you’ve got private student loans with crazy high interest rates.

You should only refinance your student loans if:

• It’s 100% free to refinance
• You can get a lower interest rate
• You can keep a fixed rate or trade your variable rate for a fixed rate
• You don’t have to sign up for a longer repayment period
• You don’t need a cosigner
• You haven’t recently declared bankruptcy
• It will actually motivate you to pay off your student loans faster

Remember, you’re refinancing to get a better rate and payment terms. If that’s not what you’re being offered, don’t refinance. It’s a bad deal. Make sure to do your homework and read the fine print, or you could end up deeper in the hole than you were before.

6. Avoid income-driven repayment plans (IDRs).

Just because your loan servicer is pushing you to enroll in an income-driven repayment plan (IDR)—especially Biden’s new SAVE plan—it doesn’t mean you should.

IDRs are student loan repayment plans that give you a super low monthly payment with the promise of having your loans forgiven later. But hear me when I say, these plans keep you stuck in a low-income job and keep you from making progress on paying off your loans.

Yeah, a lower student loan payment seems nice. But who wants to wait 20 years for the possibility of forgiveness? The truth is, that forgiveness could depend on who’s in office 20 years from now. Dragging out these loans for years (sometimes decades) is not an option­—it’s a prison sentence.

If you want to pay off your student loans fast, IDRs will only slow you waaay down. Again, your best bet is to pay as much as you can each month!

7. Don’t bank on student loan forgiveness.

I know people probably told you that taking out student loans was no big deal because you could just get them forgiven later. But guys, student loan forgiveness isn’t really the dream you think it is!

First off, the current forgiveness programs have so many hoops you have to jump through just to apply—like staying at a public service job for 10 years and making very specific payments every single month. And even after you check all the boxes, forgiveness isn’t guaranteed. Some people spend 20–25 years following a plan, only to be denied. Talk about disappointing!

For example: Do you know what the approval rate for Public Service Loan Forgiveness (PSLF) is? About 2%!³ And you want to put your hopes in 2%? I don’t know about you, but I’m not wasting my time with odds that low.

You’re better off having a job that pays well (that you actually like) so you can go ahead and pay off your student loans as fast as you can. That way, you won’t spend years of your life waiting to have your loans forgiven—only to be left hanging when it doesn’t happen.

Bottom line: Politicians make a lot of empty promises. It doesn’t matter who’s in the White House. You’re responsible for taking care of your money and your debts.

8. Make paying off your student loans a priority.

Look, I’m not here to beat you up because you took out student loans in the past. I did the same thing! But I do want you to experience the power of being debt-free!

There’s no need to drag out your student loan payments for the next five, 10 or even 20 years. When your money doesn’t have MOHELA’s name on it every month, you can do so much more with it. Instead of being held back by your student loans, you’re free to build the life you want.

Remember, the only magic formula in this is you and how hard you’re willing to work. But it’s totally worth it. You’re worth it. Keep fighting the good fight (and the bad debt!). See you later, student loans!