Shed your student loan debt in 5 steps

As college costs consistently increase, the burden of tuition weighs down American households' budgets decades after graduation. It takes about 20 years on average to pay off a student loan, according to the Education Data Initiative, and for some, repaying their debt takes at least 45 years.

Fortunately, student debt isn't as Sysyphean as these grim stats portray: there are ways to repay your loan in less time. Let's see how.

1. Stick to a budget and create a savings plan

To regularly pay off student loan debt, you must maintain an available fund - a dedicated pool to make regular payments. With a budget plan in place, you can eliminate extra spending.

Here's how to get started:

• First, write down all your necessary monthly expenses. Start with major, unconditional expenses, such as rent, food, and medical insurance, and then continue to the more flexible expenses - like clothing and entertainment. Mark how much you spend in each category.
• Next, identify unnecessary splurges, such as the seemingly harmless daily cappuccino you grab en route to the office. These expenses add up, so to save on cash, you may find that they're good candidates for a trim.
• Finally, examine your budget for more flexible categories, like groceries, and see where to make a few cuts.

Being adaptable is critical to making your new budget work. Wait for items to go on sale before purchasing, and look for coupons or cheaper store-brand products when shopping. A budget doesn't mean you're banned from an occasional treat - but you need to have a plan and stick to it.

With your new savings schedule, you'll know how you're spending your money. More importantly, you'll have a little extra to put toward paying down your student debt every month.

2. Increase your income with a side-hustle

One way to pay down your student debt faster is to bring in more income. If you're still in college, consider taking on a part-time job. The earlier you start making payments towards your student loan debt, the less you'll owe in interest down the line.

There's always demand for food delivery drivers, freelance proofreaders, and other odd jobs. While working more hours right now could be challenging, you'll reap the rewards when you're free of student loan debt in a few years.

3. Refinance your loan

Refinancing can lower your interest rate and monthly payment—but if you refinance a federal loan into a private loan, you permanently lose federal benefits like PSLF, income‑driven plans, certain deferments/forbearances, and some discharges. Consider refinancing mainly if you:

1. Won’t use federal benefits,
2. Can secure a meaningfully lower rate, and
3. Won’t have to extend the term so much that total interest rises. Federal loan rates reset each July 1; compare offers and total cost carefully before proceeding.

Tip: If you do refinance, ask the lender how extra payments are applied and whether there are any fees. Many refi lenders charge no origination fee, but policies vary.

	APR	Special Feature
	3.01% - 11.41%	Apply to multiple lenders at once	View Rates
	4.25% APR (with autopay)	No application or prepayment fees	View Rates

There are plenty of lenders you can turn to for refinancing, such as Credible or Splash Financial. Credible currently offers APR rates as low as 3.01% - 11.41%*, while you may be able to refinance at as low as 4.25% APR (with autopay) with Splash Financial.

Before you refinance, make sure it's worth it. The process itself is simple, but there may be fees attached that increase the cost of your loan. Be sure to calculate how much money you'll save with a lower interest rate before you commit to a loan refinance.

For other top lenders, visit our comparison chart.

4. Apply for loan forgiveness

Some federal loans can be forgiven or discharged. Private loans generally aren’t eligible. Key paths include:

• Teachers (Teacher Loan Forgiveness): Up to $17,500 for highly‑qualified teachers in certain fields (secondary math/science, special education) after five complete, consecutive academic years at a TCLI‑listed low‑income school/ESA. Others may qualify for up to $5,000. TLF and PSLF cannot cover the same service period.

• Public Service Loan Forgiveness (PSLF): Forgives remaining Direct Loan balance after 120 qualifying monthly payments while working full‑time for a qualifying government or 501(c)(3) employer. Do not refinance to a private loan if pursuing PSLF.

• Military benefits (separate from forgiveness): Under the SCRA, interest on pre‑service loans is capped at 6% during qualifying active duty. Military/public service employment may also qualify for PSLF.

• AmeriCorps: After a successful service term, you may receive a Segal Education Award (usable to repay qualified student loans) and an interest‑accrual payment on qualified loans placed in approved forbearance; service with qualifying employers can count toward PSLF.

• Other federal discharges: Closed school, borrower defense/false certification, total and permanent disability (TPD), death, bankruptcy (rare; court‑determined under DOJ guidance). Check criteria and tax treatment before applying.

5. Increase your monthly payments

Paying above the minimum shortens your repayment time and reduces total interest. Tell your servicer to apply extra to current principal (not to “advance” future payments). If you have multiple loans, direct extra payments to the highest‑rate loan first. Build an emergency fund before aggressively prepaying so you don’t need high‑interest credit later.

Compare top student loan refinance providers

Credible

Credible is a loan marketplace that works with some of the industry's most well-known and reliable loan providers. Its user-friendly platform makes it easy to input personal details, compare multiple lenders and find the right student loan or refinancing solution.

Credible is not a direct loan provider but works with a network of lenders to offer borrowers favorable rates and loan terms.

Read the full Credible review >>

View Rates

Splash Financial

Splash Financial is a marketplace that connects customers with lenders. They offer student loan refinancing at an APR ranging from 4.25% APR (with autopay).

While Splash offers consolidation for any college graduate with a Bachelor's Degree, it strongly emphasizes refinancing advanced degrees, specifically medical school loans. When the average medical school debt is about $200K, it's unsurprising that Splash Financial has decided to hone in on this particular niche.

Read the full Splash Financial review >>

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Regain control of your financial future

Taking a loan to finance your education is inevitable for many - and a solid route for a professional investment that may ultimately pay off. There are ways to turn your student loan from a decades-long financial burden into a manageable expense for a limited time. A student loan refinance company can help you reduce your debt faster and set yourself up for financial resilience in the future.

Need more information and tips about student loan refinancing? Check out more articles and our lender comparison chart.