How do you pay off your student loans?


Quick Answer

The best way to pay off student loans is to follow a repayment plan that makes loan debt manageable. Repayment strategies include paying higher interest loans off first, selecting a federal loan payment program, debt consolidation and automatic payment deductions.

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Full Answer

Private loans with variable interest rates can be targeted for faster repayment because there is a real risk of interest rates climbing so high that repayment becomes difficult. A way to eliminate this debt quicker is to double the minimum payment. When it comes to federal student loans, there are five repayment plans that provide flexibility in choosing how to make payments. Graduated repayment is included among the federal choices. The loan payment amounts start out low and gradually increase during a period of 10 years. This type of plan may work better for graduates with lower incomes at the start of a career.

Debt consolidation is a payment strategy that combines several federal student loans into a single payment. This type of repayment structure is often easier to manage than juggling several loan payments per month. One of the easiest ways to repay student loans is to set up automatic monthly payment deductions. Automatic payment plans can be arranged with federal student loans and select private loans.

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