How To Get A Lower Interest Rate On Student Loans

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Paying off a student loan with a high interest rate can take a lot of time and money. But if you can reduce your rate, you'll likely save money on interest charges — and might be able to pay off your loan faster.

Here are seven ways to lower your student loan interest rate:

Refinance your student loans
Sign up for autopay
Look for loyalty discounts and more
Make on-time payments
Raise your credit score
Use a cosigner when refinancing
Negotiate with your current lender

1. Refinance your student loans

Student loan refinancing lets you pay off private or federal loans with high interest rates by taking out a new loan with different repayment terms.

It could also get you a lower interest rate, which will save you money on interest charges over time. You also have the option to refinance more than once if you qualify for even better loan terms later on.

Keep in mind: While you can refinance federal student loans, you'll lose your benefits and protections — including access to income-driven repayment plans and student loan forgiveness programs.

Another option is federal loan consolidation through a Direct Consolidation Loan. Consolidating your federal student loan debt won't reduce your interest rate, but it could extend your repayment term and lower your monthly payment — lessening the strain on your monthly budget. Just remember that having a longer term means you'll pay more in interest over time.

If you decide to refinance, remember to consider as many lenders as you can to find a loan that fits your needs. Not all lenders will offer you the same rate or terms for student loan refinancing, so you'll want to get actual rates from the best student loan refinance lenders before you make a decision.

Credible makes this easy — you can compare your prequalified rates from our partner lenders in the table below in two minutes.

Lender	Fixed rates from (APR)	Variable rates from (APR)	Loan terms (years)	Loan amounts
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	4.54%+	N/A	10, 15, 20	$7,500 up to up to $200,000 (larger balances require special approval)
Fixed APR: 4.54%+ Variable APR: N/A Min. credit score: Does not disclose Loan amount: $7,500 up to $500,000 Loan terms (years): 10, 15, 20 Max. undergraduate loan balance: $250,000 - $500,000 Time to fund: 4 months Repayment options: Immediate repayment, forbearance, loans discharged upon death or disability Fees: None Discounts: Autopay Eligibility: Must be a resident of Kentucky Customer service: Phone Soft credit check: No Cosigner release: After 36 months Loan servicer: Kentucky Higher Education Student Loan Corporation Max. graduate loan balance: $250,000 - $500,000 Credible Review: Advantage Education Loan review Offers Parent PLUS Refinancing : Yes
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	2.15%+	1.87%+	5, 7, 10, 15, 20	$10,000 up to $250,000 (depending on degree)
Fixed APR: 2.15%+ Variable APR: N/A Min. credit score: Does not disclose Loan amount: $10,000 to $400,000 Loan terms (years): 5, 7, 10, 15, 20 Repayment options: Military deferment, forbearance Fees: Late fee Discounts: Autopay Eligibility: Must have a credit score of at least 720, a minimum income of $60,000, and must be a resident of Texas Customer service: Email, phone Soft credit check: Does not disclose Cosigner release: No Loan servicer: Firstmark Services Max. Undergraduate Loan Balance: $100,000 - $149,000 Max. Graduate Loan Balance: $200,000 - $400,000 Offers Parent PLUS Refinancing: Does not disclose
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	2.44%+¹	1.99%+¹	5, 7, 10, 15, 20	$10,000 to $500,000 (depending on degree and loan type)
Fixed APR: 2.44%+¹ Variable APR: 1.99%+¹ Min. credit score: Does not disclose Loan amount: $10,000 to $750,000 Loan terms (years): 5, 7, 10, 15, 20 Repayment options: Immediate repayment, academic deferment, military deferment, forbearance, loans discharged upon death or disability Fees: Late fee Discounts: Autopay, loyalty Eligibility: Must be a U.S. citizen or permanent resident and have at least $10,000 in student loans Customer service: Email, phone, chat Soft credit check: Yes Cosigner release: After 24 to 36 months Loan servicer: Firstmark Services Max. Undergraduate Loan Balance: $100,000 to $149,000 Max. Graduate Loan Balance: Less than $150,000 Offers Parent PLUS Refinancing: Yes
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	2.99%+²	2.94%+²	5, 7, 10, 12, 15, 20	$5,000 to $300,000 (depending on degree type)
Fixed APR: 2.99%+² Variable APR: 2.94%+² Min. credit score: Does not disclose Loan amount: $5,000 to $300,000 Loan terms (years): 5, 7, 10, 12, 15 Repayment options: Military deferment, forbearance, loans discharged upon death or disability Fees: Late fee Discounts: Autopay Eligibility: All states except for ME Customer service: Email, phone, chat Soft credit check: Yes Cosigner release: After 24 to 36 months Loan servicer: College Ave Servicing LLC Max. Undergraduate Loan Balance: $100,000 to $149,000 Max. Graduate Loan Balance: Less than $300,000 Offers Parent PLUS Refinancing: Yes
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	2.16%+	2.11%+	5, 7, 10, 15, 20	$5,000 to $500,000
Fixed rate: 2.44%+¹ Variable rate: 1.99%+¹ Min. credit score: 680 Loan amount: $5,000 to $500,000 Cosigner release: Yes Loan terms (years): 5, 7, 10, 15, 20 Repayment options: Academic deferment, forbearance, loans discharged upon death or disability Fees: Late fee Discounts: Autopay Eligibility: Available in all states, except MS and NV Customer service: Email, phone, chat Soft credit check: Yes Loan servicer: FirstMark Max. undergraduate loan balance: $500,000 Max. graduate loan balance: $500,000 Offers Parent PLUS refinancing: Yes Min. income: $65,000 (for 15- and 20-year products)
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	3.91%+⁵	1.81%+⁵	5, 10, 15, 20	$1,000 to $250,000
Fixed APR: 3.91%+⁵ Variable APR: 1.81%+⁵ Min. credit score: 700 Loan amount: $7,500 to $200,000 Loan terms (years): 5, 10, 15, 20 Repayment options: Immediate repayment, academic deferment, forbearance, loans discharged upon death or disability Fees: None Discounts: Autopay Eligibility: Must be a U.S. citizen or permanent resident and submit two personal references Customer service: Email, phone Soft credit check: Yes Cosigner release: After 36 months Loan servicer: Granite State Management & Resources (GSM&R) Max. Undergraduate Loan Balance: $150,000 to $249,000 Max. Graduate Loan Balance: $150,000 to $199,000 Offers Parent PLUS Refinancing : Yes
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	2.47%+³	1.86%+³	5, 7, 10, 12, 15, 20	$15,000 to $250,000
Fixed APR: 2.47%+³ Variable APR: 1.86%+³ Min. credit score: 680 Loan amount: $15,000 to $250,000 Loan terms (years): 5, 7, 10, 12, 15, 20 Repayment options: Forbearance Fees: None Discounts: None Eligibility: Must be a U.S. citizen or permanent resident, have at least $15,000 in student loan debt, and have a bachelor's degree or higher from an approved school Customer service: Email, phone Soft credit check: Yes Cosigner release: No Loan servicer: Mohela Max. Undergraduate Loan Balance: $250,000 Max. Graduate Loan Balance: $250,000 Offers Parent PLUS Refinancing: Yes
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	3.47%+⁴	2.44%+⁴	5, 10, 15, 20	$5,000 - $250,000
Fixed APR: 3.47%+⁴ Variable APR: 2.44%+⁴ Min. credit score: 670 Loan amount: $5,000 to $250,000 Loan terms (years): 5, 10, 15, 20 Repayment options: Academic deferment, military deferment, forbearance Fees: Late fee Discounts: Autopay Eligibility: Must be U.S. citizen or permanent resident Customer service: Email, phone, chat Soft credit check: Yes Cosigner release: Yes Max undergraduate loan balance: $250,000 Max graduate loan balance: $250,000 Offers Parent PLUS refinancing: Yes
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	2.44%+ ⁷	N/A	5, 7, 10, 12, 15, 20	Up to $300,000
Fixed APR: 2.44%+ ⁷ Variable APR: N/A Min. credit score: 670 Loan amount: Up to $300,000 Loan terms (years): 5, 7, 10, 15, 20 Time to fund: Usually one business day Repayment options: Academic deferral, military deferral, forbearance, death/disability discharge Fees: None Discounts: Autopay Eligibility: Available in all 50 states Customer service: Email, phone Soft credit check: Yes Cosigner release: After 24 months Max. undergraduate loan balance: $300,000 Max. graduate balance: $300,000 Offers Parent PLUS loans: Yes Min. income: None
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	2.5%+	N/A	7, 10, 15	$10,000 up to the total amount of qualified education debt
Fixed APR: 2.5%+ Variable APR: N/A Min. credit score: 670 Loan amount: $10,000 up to the total amount Loan terms (years): 7, 10, 15 Repayment options: Military deferment, loans discharged upon death or disability Fees: None Discounts: None Eligibility: Must be a U.S. citizen or permanent resident and have at least $10,000 in student loans Customer service: Email, phone Soft credit check: Yes Cosigner release: No Loan servicer: AES Max. Undergraduate Loan Balance: No maximum Max. Gradaute Loan Balance: No maximum Offers Parent PLUS Refinancing: Yes
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	2.89%+	N/A	5, 8, 12, 15	$7,500 to $300,000
Fixed APR: 2.89%+ Variable APR: N/A Min. credit score: 670 Loan amount: $7,500 to $300,000 Loan terms (years): 5, 8, 12, 15 Repayment options: Does not disclose Fees: None Discounts: None Eligibility: Must be a U.S. citizen and have and at least $7,500 in student loans Customer service: Email, phone, chat Soft credit check: Yes Cosigner release: After 12 months Loan servicer: PenFed Max. Undergraduate Loan Balance: $300,000 Max. Graduate Loan Balance: $300,000 Offers Parent PLUS Refinancing: Yes
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	2.69%+	N/A	5, 10, 15	$7,500 up to $250,000 (depending on highest degree earned)
Fixed APR: 2.69%+ Variable APR: N/A Min. credit score: 680 Loan amount: $7,500 to $250,000 Loan terms (years): 5, 10, 15 Repayment options: Academic deferment, military deferment, forbearance, loans discharged upon death or disability Fees: None Discounts: Autopay Eligibility: Available in all 50 states; must also have at least $7,500 in student loans and a minimum income of $40,000 Customer service: Email, phone Soft credit check: Does not disclose Cosigner release: No Loan servicer: Rhode Island Student Loan Authority Max. Undergraduate Loan Balance: $150,000 - $249,000 Max. Graduate Loan Balance: $200,000 - $249,000 Offers Parent PLUS Refinancing: Yes
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	2.49%+ ⁶	1.74%+ ⁶	5, 7, 10, 15, 20	$5,000 up to the full balance of your qualified education loans
Fixed APR: 2.49%+ ⁶ Variable APR: 1.74%+ ⁶ Min. credit score: Does not disclose Loan amount: $5,000 up to the full balance Loan terms (years): 5, 7, 10, 15, 20 Repayment options: Academic deferment, military deferment Fees: None Discounts: Autopay, loyalty Eligibility: Available in all 50 states Customer service: Email, phone, chat Soft credit check: Yes Cosigner release: No Max undergraduate loan balance: No maximum Max graduate loan balance: No maximum Offers Parent PLUS refinancing: Yes
Compare personalized rates from multiple lenders without affecting your credit score. 100% free!Compare Now Trustpilot
All APRs reflect autopay and loyalty discounts where available \| ¹Citizens Disclosures \| ²College Ave Disclosures \| ⁵EDvestinU Disclosures \| ³ ELFI Disclosures \| ⁴INvestEd Disclosures \| ⁷ISL Education Lending Disclosures \| ⁶SoFi Disclosures

Learn More: Fixed- or Variable-Rate Student Loan: Which Is Right for You?

2. Sign up for autopay

One of the quickest ways to get a rate discount is to check if your lender or loan servicer offers an automatic payment discount. Most autopay discounts reduce your rate by 0.25% percentage points. That might not seem like a lot, but every little bit helps.

	Without 0.25% discount	With 0.25% discount
Loan amount	$40,000	$40,000
Interest rate	6.80%	6.55%
Total interest	$15,239	$14,625
Savings	$0	$614
How authorizing automatic loan payments can lower your student loan repayment costs. Assumes 10-year repayment term.

For example: If your total student loan debt is $40,000, that small rate discount can save you more than $600 over the life of a loan with a 10-year repayment term. You'll save even more if your loan balance is higher.

In addition to lowering your interest rate, authorizing automatic payments can:

Help you stay current on your loans
Avoid costly late fees and damage your credit score
Help you improve your credit by establishing a history of on-time payments

Here are Credible's partner lenders that offer automatic payment discounts:

Advantage
Ascent
Brazos
Citizens
College Ave
EDvestinU
INvestEd
ISL Education Lending
RISLA
Sallie Mae
SoFi

3. Look for loyalty discounts and more

Some lenders also offer loyalty discounts to borrowers that already have a relationship with them. These rate discounts are typically 0.25%, depending on the lender.

For example: If you already have an account with Citizens and refinance your student loans through them, you might qualify for a 0.25% rate discount. Or if you refinance with SoFi and are already a member, you could get a 0.125% rate discount.

Because borrowers who earn their degrees are less likely to default on their loans, you might also be able to earn rewards on private student loans for earning good grades or graduating.

For example, INvestEd will deduct 2% from your original loan principle if you graduate from your program within six years.

Keep in mind: Some lenders offer even bigger "relationship-based" discounts to customers who maintain high balances in a checking or savings account — such as First Republic Bank (up to 2.00%. Note that they are not a Credible partner.

Ask your lender if there are any other discounts you qualify for. You might be surprised at how much lower you can get your rate.

If you are able to refinance to a lower rate and also take advantage of any rate discounts you qualify for, you could save a lot of money in interest charges over the life of your loan. Use our calculator below to see what you might save by refinancing your student loans.

Step 1. Enter your loan balance

Loan balance ? Enter the remaining amount of the loans you'd like to refinance $

Step 2. Enter current loan information

Interest rate ? Enter the average annual interest rate of the loans you'd like to refinance %

Monthly payment ? Enter the monthly amount you currently pay on your loans (or enter remaining term) $

Remaining term ? Enter the amount of time left to repay your loan (or enter monthly payment) years

Step 3. Enter your new loan information to start calculating your savings

Interest rate ? Enter an estimated new interest rate. %

Monthly payment ? Enter the monthly amount to pay on your new loan (or enter new loan term) $

New loan term ? Enter the amount of time you have to repay your loan (or enter monthly payment) years

Lifetime Savings Increased Lifetime Cost

Monthly Savings Increased Monthly Cost

If you refinance your student loan at % interest rate, you can save will pay an additional $ monthly and pay off your loan by . The total cost of the new loan will be $ .

Does refinancing make sense for you?
Compare offers from top refinancing lenders to determine your actual savings.

Check Personalized Rates

Checking rates won't affect your credit score.

4. Make on-time payments

Some lenders offer an interest rate discount after you've made a specific number of on-time payments. Not all lenders offer on-time payment discounts, but it doesn't hurt to ask yours if it's available.

For example, MPOWER Financing offers a 0.50% rate discount if you make on-time, consecutive payments on your student loan for six months using autopay. Note that MPOWER isn't one of Credible's partner lenders.

Keep in mind: On-time payment history is a key component of your credit score. It also gives lenders a chance to reward you for good behavior.

5. Raise your credit score

To qualify for the lowest-advertised refinancing rates, you typically need very good to excellent credit — meaning a score between 740 and 850. If you have poor or fair credit, it might be a good idea to focus on improving your credit first so you can qualify for a lower interest rate later on.

Here are several ways to potentially raise your score:

Review your credit report: Check your credit report to ensure there are no errors or fraudulent accounts in your name. If you find any inaccurate information, dispute the accounts with the major credit bureaus: Experian, Equifax, and TransUnion. Having incorrect information removed from your report could improve your score within a few weeks.
Make payments on time: Your payment history comprises 35% of your FICO credit score. To boost your credit, be sure to pay all of your bills on time. Keep in mind that past missed payments can stay on your credit report for up to seven years. However, the longer you spend making on-time payments, the less impact those missed payments will have on your overall score.
Pay down debt: Your credit utilization makes up 30% of your FICO credit score. To reduce your credit utilization (how much of your available credit you use), make extra payments toward your existing accounts, such as credit cards or student loans. As you lower your credit utilization, your score will gradually improve.

Keep in mind: It generally takes about six months of following these steps to see a difference in your credit. The longer you stick to these behaviors, the more your credit will improve.

6. Use a cosigner when refinancing

If you have less-than-perfect credit, you might be able to lower your interest rates by refinancing your student loans with a cosigner. A cosigner is typically a friend or relative with good or exceptional credit as well as reliable income who will share responsibility for the loan.

Adding a cosigner reduces the risk to the lender, which could improve your chances of qualifying for a lower interest rate.

Keep in mind: Adding a cosigner to your loan doesn't have to be permanent. Some lenders offer cosigner release, which lets you remove a cosigner from the loan if you meet certain requirements.

To qualify for cosigner release, you'll typically need to:

Make consecutive, on-time payments for a specific amount of time (typically 12 to 48 months, depending on the lender)
Meet the lender's eligibility criteria (such as credit score and income requirements) on your own

If you're approved for cosigner release, your interest rate will likely stay the same. Here are Credible's partner refinancing lenders that offer cosigner release:

Lender	Fixed rates from (APR)	Variable rates from (APR)	Min. credit score	Cosigner release offered
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.	4.54%+	N/A	Does not disclose	After 36 months
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.	2.44%+¹	1.99%+¹	Does not disclose	After 36 months
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.	2.99%+²	2.94%+²	Does not disclose	After 24-36 months
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.	2.16%+	2.11%+	680	After 24 months
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.	3.91%+⁵	1.81%+⁵	700	After 36 months
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.	3.47%+⁴	2.44%+⁴	670	After 48 months
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.	2.44%+ ⁷	N/A	670	After 24 months
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology.	2.89%+	N/A	670	After 12 months
Compare personalized rates from multiple lenders without affecting your credit score. 100% free!Compare Now Trustpilot
All APRs reflect autopay and loyalty discounts where available \| ¹Citizens Disclosures \| ²College Ave Disclosures \| ⁵EDvestinU Disclosures \| ³ ELFI Disclosures \| ⁴INvestEd Disclosures \| ⁷ISL Education Lending Disclosures \| ⁶SoFi Disclosures

7. Negotiate with your current lender

While this strategy isn't guaranteed, one way to potentially lower your interest rate is to negotiate with your current lender.

If you've improved your creditworthiness by increasing your income, paying down debt, or boosting your credit score, your lender might be willing to reduce your rate.

Tip: Before negotiating, consider shopping around with other refinancing lenders to get rate offers. Once you have these quotes, contact your lender, let them know you're considering taking out a loan from another company, and see if they'll give you a lower interest rate.

If you have a good history with the lender, they might be willing to counteroffer to keep you as a customer.

Keep in mind that this strategy won't work for federal student loans — since you can't switch servicers, there's no incentive for your servicer to lower your rates. But if you have private student loans, this might be an effective way to score a reduced rate.

Other ways to save money when repaying student loans

If you're not able to lower your student loan interest rates, there are other ways to tackle your student loans. Here are a few other ways you could pay your loans off faster:

Pay more each month
Deduct payments on your taxes
Avoid alternative payment plans
Use the debt avalanche method

1. Pay more each month

Try making larger monthly payments rather than the minimum amount due. While you may not lower your interest rate, you'll end up paying less in interest over the life of the loan since you'll pay off student loans sooner.

You can also work towards making an extra payment on your student loans, whether it's every other month or once a year. Consider making full payments twice a month, too, if your budget allows it.

2. Deduct payments on your taxes

If you made payments toward your student loans, you might qualify for the student loan interest tax deduction. This will reduce your taxable income.

With the student loan interest tax deduction, you can deduct $2,500 or the amount of interest you paid during the tax year — whichever is less.

There are income restrictions on who qualifies for the deduction, and you'll need to have qualifying loans. But if you're eligible, taking advantage of the deduction could help you save money.

3. Avoid alternative payment plans

Income-driven repayment plans are great if you can't afford to make on-time minimum payments every month. But they can extend your loan terms from 10 years to as long as 25 years. That's a long time to be paying back your loans.

If you stick to the standard repayment plan, you'll be paid in full within a decade. When you extend your loan term, you may get a lower monthly payment, but you can end up paying a lot more in interest.

4. Use the debt avalanche method

If you want to reduce how much you pay in interest, using the debt avalanche method could be a good way for managing your loans. By using this approach, you'll tackle the most expensive debt first — which will save you money on interest charges and help you pay off your loans faster.

Here's how it works:
debt avalanche method

If you decide to refinance your student loans, remember to consider as many lenders as you can to find a loan that fits your needs. Credible makes this easy — you compare your prequalified rates from multiple lenders in two minutes.

Find out if refinancing is right for you

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About the author

Kat Tretina

Kat Tretina is a freelance writer who covers everything from student loans to personal loans to mortgages. Her work has appeared in publications like the Huffington Post, Money Magazine, MarketWatch, Business Insider, and more.