Even with the federal student loan forbearance extension, you might still be worried about paying off your student loan debt. Whether you have to pay off private student loans or you want to get a head start on when federal student loan payments resume, there are a few ways you can lower your student debt right now.
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How to Reduce Your Student Loan Debt
If you’re living paycheck-to-paycheck or your student loans are holding you back from other goals, here are five ways you can take action today.
1. Enroll in Autopay
This is likely one of the easiest ways to lower your student loan debt. Many student loan lenders offer a discount if you set up automatic payments for your student loans. This gives you an interest rate discount—usually 0.25%—and could lower the total amount you repay. While it might not make a major difference short term, it could save you a significant amount over the life of your loan.
Pay more than the minimum to get even more bang for your buck. Some lenders limit your monthly automatic payments to the minimum amount while others will let you pay whatever amount you like. If your lender lets you pay more than the minimum balance, you can accelerate your payoff timeline when you pay more than the minimum amount.