How to pay off student loans quickly: 8 strategies that work

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How to pay off student loans quickly: 8 strategies that work B Ben Luthi Updated Thu, February 5, 2026 at 12:00 AM GMT+8 6 min read

With the right strategy, you can pay off your loans faster than you might think. Whether you're carrying federal or private student loans, accelerating your repayment can save you thousands in interest and free up cash flow for other financial goals. Here's how to pay off student loans fast while maintaining your financial stability.

See what student loan refinancing rates you qualify for:

8 ways to pay off student loans quickly

If you're interested in paying off student loans as fast as possible, these steps can help you accomplish your goal in a sustainable way that won't threaten your other financial needs and obligations.

Keep in mind that some of them may not accelerate your repayment much on their own, but combining several of them can have a compounding effect.

1. Increase your monthly payment

One of the most straightforward ways to pay off student loans fast is to increase your monthly payment whenever possible. Even a modest increase can shave years off your repayment timeline and save you significant money in interest.

For example, if you owe $20,000 at 6% interest with a standard 10-year term, your monthly payment would be around $222. By increasing your payment to $300 per month, you'll eliminate your debt 39 months early and save roughly $2,258 in interest.

Contact your loan servicer or log into your online account to adjust your automatic payment amount. Just make sure you specify that extra payments should be applied to your principal balance, not treated as advance payments.

Related: 4 ways to increase cash flow and pay off debt faster

2. Switch to biweekly payments

Instead of making one monthly payment, split it in half and pay every two weeks. This simple adjustment means you'll make 26 half-payments per year, which equals 13 full monthly payments instead of 12.

Using the same $20,000 loan example above, switching to biweekly payments would eliminate your debt in nine years instead of 10, saving you approximately $762 in interest. This strategy works particularly well if you're paid biweekly, as you can align your loan payments with your paychecks.

3. Take advantage of employer assistance

An increasing number of employers now offer student loan repayment assistance as part of their benefits package. According to the International Foundation of Employee Benefit Plans, 14% of employers offered the perk in 2024, up from 4% in 2019.

Read more: 9 ways your employer can help you save money

Check with your human resources department to see if your employer offers this benefit. If they don't, consider asking about it. Student loan assistance programs are becoming more popular while companies compete for talent. Just keep in mind that some employers may require you to work there for a certain period before qualifying — usually six to 12 months.

For example, let's say your employer offers just $100 per month toward your student loan payments. On $20,000 in debt with a 6% interest rate and a 10-year repayment term, that'll cut your repayment term by an impressive 46 months. You'll also earn $2,638 in interest savings without any of your own extra payments.

4. Make the most of windfalls

Whenever you receive unexpected money — such as tax refunds, work bonuses, cash gifts, or inheritances — consider putting a portion toward your student loans. According to the IRS, the average tax refund in 2025 was $3,052, which could make a substantial dent in your student loan balance.

If you were to put that much toward your student loans in a lump-sum payment every year — assuming no other extra payments — you'd pay off your debt in just under four years instead of 10.

Related: Should I pay off credit card debt with a financial windfall?

5. Use the debt snowflake method

The debt snowflake method involves applying small savings throughout the month. For instance, if you earn $3 in cash-back rewards or save money with a coupon, immediately transfer that amount to your student loan payment fund. These small amounts add up over time, and the psychological momentum can help you stay motivated.

But again, be sure to instruct your loan servicer to apply these extra payments directly to your principal balance rather than future payments to maximize your interest savings.

Read more: Debt snowball vs. debt avalanche

6. Boost your income

Increasing your income creates more room in your budget for accelerated loan payments. Consider asking for a raise at your current job, pursuing overtime opportunities, or searching for a higher-paying position.

If changing jobs isn't feasible, a side hustle can provide extra income dedicated entirely to loan repayment. Popular options include rideshare driving, food delivery, freelancing, tutoring, or monetizing a skill or hobby. The key is finding something you can do consistently without burning yourself out.

Say you earn an extra $300 monthly by occasionally running deliveries for DoorDash. Returning to our example, adding that amount to your $222 in regular monthly payments would allow you to pay off your loans completely in just 43 months.

7. Refinance your student loans

Refinancing your student loans could help you pay off your debt faster by securing a lower interest rate or potentially shortening your repayment term.

For example, refinancing a $20,000 loan from 7% to 5% while choosing a seven-year term instead of 10 years would increase your monthly payment by about $50, but you'd save approximately $4,120 in interest and eliminate your debt three years earlier.

However, be cautious about refinancing federal student loans with a private lender. You'll permanently lose access to federal benefits like income-driven repayment, loan forgiveness programs, and forbearance options. If you have a stable income and career, this trade-off might be worthwhile, but evaluate your situation carefully.

If you already have private loans, there's typically little downside to refinancing if you can secure better terms.

Related: What is a good student loan interest rate?

8. Enroll in autopay

If you haven't already, set up automatic payments for your student loans. Beyond the convenience, most lenders offer an interest rate discount of 0.25% to 0.50% when you enroll in autopay.

While this discount won't reduce your payoff time on its own — and you'll only save about $300 in interest over 10 years on a $20,000 loan — it compounds nicely when combined with other accelerated repayment strategies.

What to consider before tackling your student loan debt

While paying off student loans quickly can save you money and reduce stress, it's crucial to maintain balance in your overall financial plan. Before aggressively attacking your student loan debt, make sure you:

Build an emergency fund. While the ultimate goal is three to six months of expenses in savings, that can take years to achieve. Start by building a smaller buffer you feel comfortable with — even $500 to $1,000 can cover many common emergencies like car repairs or medical copays. Once you have that initial cushion, you can work on paying down your student loans while continuing to add to your emergency fund over time.
Address high-interest debt. If you're carrying credit card debt or other loans with high interest rates, prioritize paying those off before accelerating student loan payments. The interest savings will likely be more significant.
Don't neglect retirement savings. If your employer offers a 401(k) match, contribute at least enough to get the full match — it's essentially free money.
Maintain your lifestyle sustainably. Avoid cutting expenses so drastically that you feel constantly deprived or burned out. Sustainable financial habits are better than extreme sacrifices you can't maintain long-term.

By combining several of these strategies, you can significantly reduce your student loan payoff timeline while maintaining overall financial health. Choose the approaches that work best for your situation, and remember that every extra dollar toward your principal balance is a step toward financial freedom.

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