How To Reduce My Student Loan Payments

Learning how to lower student loan payments can be a lifesaver if you’re struggling to afford your bills. Fortunately, you don’t have to be stuck with sky-high payments every month. Here are nine strategies to reduce student loan payments or even repay your loans early.

Apply for an income-driven repayment plan If you have federal student loans, you’re automatically enrolled in the standard repayment plan when you graduate. With this plan, your payments are fixed and divided over 10 years — but the monthly payments can be high. Luckily, there are other student loan payment plans available.

Sign up for a graduated repayment plan If you make too much money to qualify for a lower payment with an IDR plan but still can’t afford your payment for your federal loans, another option is to sign up for a graduated repayment plan.

Consider doing the following to help you repay your student debt faster. Making lump-sum payments at any time will help you pay down your loan faster. Lump-sum payments will go toward interest first and then to the principal of your loan. The principal is the amount of money you borrowed.