Paying more will accelerate loan payoff, but it’s not your only option.

 If you’re like most student loan holders, you’re facing an average debt of $30,000. While this is certainly a significant sum, it’s not necessarily insurmountable. The vast majority of people with student loans do repay them—and you can, too! Check out these helpful tips to help you pay off your student loans, no matter how much you owe.

Pay more than the minimum

By putting a little extra money toward the principal of your loan each month, you’ll pay it off more quickly and therefore reduce the overall amount of interest paid over the life of the loan.

When paying more than the minimum be sure to specify that the extra payment is applied to the loan principal. Without this directive, some lenders may apply the extra to future payments, which will not accelerate the reduction of principal.

According to the office of Federal Student Aid, part of the U.S. Department of Education, here’s the power of additional payments for the typical student loan ($15,000/10-year loan at 4.29%):

Extra Paid Each Month	Interest Saved	Time Loan is Reduced
$15	$395	About 1 Year
$30	$708	About 1 Year and 11 Months
$60	$1,174	Over 3 Years

Get a side gig or an extra job

A classic way to make faster progress in paying down debt is to take on an extra job or do freelance work. One positive thing to come from the pandemic is more availability of remote work, which creates even more opportunities for people who want to pay down debt.

Apply any extra or unexpected funds to student loans

End-of-year bonuses, tax refunds, rebates and gifts can all be applied to student loans without feeling any pinch in your day-to-day budget since these funds are not part of your regular income. If you receive a raise, use part or all of the increase toward paying down student loans.

Explore loan forgiveness programs

Those who work in public service and health professions may be eligible for loan repayment programs that pay off loans after a set period of working in the field.

If you are employed by a U.S. federal, state, local or tribal government or non-profit organization (federal service includes U.S. military service), check out the Public Service Loan Forgiveness Program.

Nurses who work in underserved areas may also be eligible for additional loan forgiveness through the Nurse Corps Loan Repayment Program. Other healthcare providers, including doctors, social workers, midwives and more, may qualify for the National Health Service Corps Loan Repayment Program.

Teachers, keep your eye on this developing story: The Detroit News recently reported on a bill introduced to the State Senate that would provide $20,000 in loan forgiveness for teachers in school districts where at least half the students qualify for free or reduced-price lunch programs. If the bill passes, it would provide a viable route for many teachers to reduce or eliminate their student loans.

Review the interest rates on your loans

Not all student loans are created equal. Some have higher interest rates—pay these off first or consider refinancing for a lower interest rate.

Carefully consider consolidation

While having a single loan payment can appear attractive to many people, refinancing federal loans with a private lender could cause you to lose benefits such as unemployment deferment and eligibility for loan forgiveness programs. Make sure you fully understand the terms and benefits of your loans before consolidating them.

Take advantage of your member benefits

Student loans are just one part of your finances—albeit a big one. If you’d like help with budgeting and debt repayment advice, financial counseling with a professional could help. As a Consumers member, it’s free for you to enlist the services of GreenPath financial management counselors.

Consumers provides banking services for more than 117,000 members. If you have banking questions, call us at 800-991-2221. We make it easy to bank how you want, when you want.

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