What Are Some Strategies for Paying Off Student Loans?

What Are Some Strategies for Paying Off Student Loans?

Some strategies for paying off student loans include choosing the right repayment plan, signing up for an auto-deduction plan and paying off private loans before federal loans. Graduates may also want to look into refinancing the loan, earning extra income and cutting costs, according to U.S. News.

Repayment options can make a big difference in terms of repaying loans quickly. Federal loans offer a variety of different options, including income-based repayment plans for low-income graduates, graduated plans that increase repayment as income increases and straight repayment, which is designed to repay the loan within 10 years, as reported by CNBC. Choosing the auto-deduction option for government loans usually leads to a lower interest rate.