9 Ways to Take Control of Your Student Loan Repayment
Student loans can feel like a heavy burden, but they don’t have to. With interest on federal student loans now resuming after a long pause, many borrowers are feeling the pressure. Whether you're just beginning or are deep into your repayment journey, there are practical ways to stay on track and even get ahead.
Let’s break down expert-backed tips to help you manage your student loans with confidence.
1. Know What You Owe
Before you can make a plan, you need a clear picture of your loans. That includes knowing your total balance, interest rates, monthly payments, and who your loan servicer is. For federal loans, you can find this information at StudentAid.gov. For private loans, contact your lender directly.
Keeping this information organized helps you avoid missed payments and make smarter decisions about repayment.
2. Pay More Than the Minimum
If your budget allows, paying more than your minimum monthly payment can help you pay off your loans faster and reduce the total interest you pay. Even an extra $20 or $50 a month can make a difference over time. The more debt you have, the more you’ll save long-term.
When you make extra payments, be sure to tell your loan servicer to apply the additional amount to your loan with the highest interest rate, not to future payments. This strategy helps you save the most money in the long run by tackling the most expensive debt first.
To do this, you may need to contact your lender directly or adjust your payment settings online. If you don’t specify, some lenders may automatically apply extra payments to your next due date rather than reducing your principal balance.
3. Choose a Repayment Plan That Fits Your Life
Federal student loans offer several repayment options. If your current payments feel too high, consider switching to an income-driven repayment (IDR) plan. These plans adjust your monthly payment based on your income and family size, and in some cases, your payment could be as low as $0 per month.
Some common federal repayment plans include:
- Standard Repayment Plan: Fixed payments over 10 years.
- Graduated Repayment Plan: Payments start low and increase every two years.
- Income-Driven Repayment Plans: Payments based on income.
- Extended Repayment Plan: Lower payments over a longer period (25 years).
If you’re unsure which plan is best, the Federal Student Aid’s Loan Simulator can help you compare options.
4. Sign Up for Autopay
One of the easiest ways to stay on top of your payments is to enroll in autopay. Autopay ensures your payments are made on time each month, which helps to protect your credit score. Plus, many federal loan servicers offer a 0.25% interest rate reduction just for signing up. Yes, that's a small discount, but over time, it can add up. Plus, it's one less thing to worry about each month.
5. Understand Deferment and Forbearance Options
If you’re struggling to make payments due to a job loss, medical emergency, or another unexpected financial challenge, you may qualify for deferment or forbearance. These options offer temporary relief by allowing you to pause or reduce your payments for a period of up to three years.
Deferment is typically available for specific situations like returning to school, active military duty, or economic hardship. If you have subsidized federal loans, interest may not accrue during this time
Forbearance is more widely available and can be used in situations like unemployment, medical bills, or serving in AmeriCorps or the National Guard. However, interest usually continues to grow on all loan types during forbearance.
While these options can help in a pinch, they’re not long-term solutions. Because interest can add up quickly, it’s a good idea to explore income-driven repayment plans first if you qualify.
6. Watch Out for Scams
You get a call from a company promising to “erase” your student loans for a fee. What should you do?
Unfortunately, student loan borrowers are often a target for scammers promising "instant forgiveness" or charging fees for services you can get for free. According to the Consumer Financial Protection Bureau (CFPB), you should never pay for help managing your student loans.
To protect yourself, only work with your official loan servicer. Don’t share your FSA ID or personal information with anyone you don’t fully trust, and be cautious of companies that ask for upfront fees. If something sounds too good to be true, it probably is. When in doubt, contact your loan servicer directly or visit StudentAid.gov for up-to-date information.
Also, avoid using credit cards to pay off student loans. The interest rates are usually much higher and can make your debt harder to manage in the long run.
7. Look Into Loan Forgiveness Programs
Depending on your job, you may qualify for loan forgiveness. If you qualify, forgiveness can significantly reduce your loan burden.
Public Service Loan Forgiveness (PSLF) is one of the most well-known programs, offering forgiveness after 10 years of qualifying payments for those working in government or nonprofit roles.
Other options include Teacher Loan Forgiveness, forgiveness through income-driven repayment plans, and state or employer-sponsored programs. These programs have specific rules, so it’s important to read the details and stay on top of paperwork.
8. Build a Budget That Includes Your Loans
A realistic budget is one of the most powerful tools you have. Treat your loan payments like any other essential monthly expense, like rent, groceries, or utilities. There are plenty of free budgeting apps that can help you track your spending, set goals, and stay organized. Some even let you create custom categories for student loans, so you can see your progress month by month.
9. Ask Your Employer About Loan Repayment Assistance
You might be leaving money on the table without even realizing it. Many employers are offering student loan repayment assistance as part of their benefits packages. This support can come in the form of monthly payments made directly toward your loan balance on top of your regular paycheck.
Right now, employers can contribute up to $5,250 per year toward your student loans without that money being taxed. That means more of the benefit goes directly to your loan, and you don't pay extra taxes on it.
Even if your employer doesn't currently offer loan repayment assistance, it's worth asking. Expressing interest can help your company understand the demand, and in some cases, it could lead to new benefits.
You’re Making Progress!
Paying off student loans is a marathon, not a sprint. It’s easy to feel discouraged, but every payment, no matter how small, is a step forward. Whether you’ve just chosen a new repayment plan, made an extra payment, or finally balanced your budget, it’s worth celebrating the small wins.
You’re not alone in this. Millions of borrowers are facing the same challenges. With the right strategies, student loan repayment can become a stepping stone to long-term stability and freedom.
At WithU Loans, we’re here to help you stay informed, stay motivated, and stay on track every step of the way.
