What Are Some Helpful Tips for Paying Off a Student Loan?


Quick Answer

To pay off a student loan, the United States Department of Education recommends paying on the loan while the student is still in school, signing up for automatic debit and paying more than the minimum payment due. Using annual tax refunds to pay off student loan debt and seeking out loan forgiveness are other suggestions.

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Full Answer

Students receiving students loans can begin repayment while still in school or during the loan's grace period, notes the U.S. Department of Education. Students may also opt to pay off the interest each month as it accrues to reduce the amount that they owe later and to prevent the capitalization of interest on their loans. Students may qualify for a reduction in the interest rate charged on their loans if they opt to make an automatic debit of their loan payments each month. Paying an additional amount on the balance due each month reduces the overall loan balance, and thus, the interest charged on the loan.

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