How to pay off student loans

With the steep cost of higher education in the U.S., the amount of money that many students have to borrow in order to attend college can leave them in debt post-graduation. Sometimes the sum feels insurmountable.

If you are among those borrowers looking at a hefty student loan burden, it is vital to not simply settle for the default repayment plan. To maximize your efficacy and efficiency when paying off student loans, it is worth taking the time to assess your full range of options for repayment — including any assistance you may have access to — and from there, determine what makes the most sense for your situation.

Choose a suitable repayment plan

If you have federal student loans, expect to be automatically enrolled in the standard 10-year repayment plan as soon as your grace period ends. While this plan may work "if you can afford higher payments now and want to minimize the total interest paid over time," the payments are not feasible for all borrowers.

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To make a change, "you will need to contact your loan servicer and apply for one of the other plans," said Money. Other repayment plan options include an "income-driven repayment plan if you need flexibility and owe federal student loans," said Investopedia, and a graduated repayment plan that allows you to start off making smaller payments that gradually increase over time. "The best way to evaluate loan repayment options is to use a loan repayment calculator, such as the one offered by the Department of Education," said Investopedia.

Consider refinancing

Particularly if you have private student loans and your credit has improved since you first took them out, it may be worthwhile to refinance. With student loan refinancing, "you're taking out a new loan to pay off the old ones," meaning you will have just one monthly payment to worry about, and "if that new loan has a lower interest rate than the average rate you were paying across the old loans, you could save some money — provided you don't extend the term," said Investopedia.

Be cautious before making this move with federal student loans (though it is possible to do); you will "lose access to benefits like income-driven repayment plans and loan forgiveness," said NerdWallet.

Look into loan forgiveness and assistance options

Getting any amount of help in repaying your loan balance can also expedite repayment. For instance, with income-driven repayment plans, "when the term is over, you can get income-driven loan forgiveness for your remaining debt," said NerdWallet. Another path toward forgiveness is Public Service Loan Forgiveness (PSLF), which grants forgiveness to those who work full-time for an eligible not-for-profit or government agency after they make 120 qualifying payments.

Your employer could be another resource to tap. "Some employers, including large companies like Google, Estée Lauder and NVIDIA offer student loan repayment assistance," which can "provide up to $5,250 per year tax-free to pay down your loans," said Credible.