Are you drowning in debt, specifically in regard to student loans? You’re not alone. Many Americans struggle to pay back their debt once they are out of school. In 2023, the average amount owed in student debt for an individual was $38,290.

Playing the tricky game of balancing student loans, car bills, house bills and anything else can be difficult. However, with a few helpful tips, you’ll feel the burden lifted off your shoulders in no time. Research the perfect repayment plan for you, consolidate loans, opt for automated payments and pay a little extra each month toward your bill.

Repayment options

While it may be complex to navigate paying back student loans, there are plenty of repayment options that can give you a good start in the right direction. For federal loans, you can choose between standard, graduated, extended and income-driven repayment options, each with its own pros and drawbacks. Selecting the one that will give you the most benefits will depend on your goals and situation. Additionally, if you have private student loans, it’s important to note that lenders are not required to offer relief, but it never hurts to ask.

Standard

If you decide to go the standard route of repaying your debt, you’ll have a fixed payment that will last up to 10 years or until it is paid off. This is the option that most borrowers go with.

Graduated

The graduated plan is great to consider if you predict you will have a higher income in the future. This plan starts with low payments that will slowly increase every two years. You will have 10 years to pay these loans off.

Extended

If you are struggling to meet your monthly payments, the extended plan may be the best option for you. This plan extends the pay-off time to 25 years while also lowering your monthly payment.

Income-driven

If you have a large family and a low income, this plan might give you an advantage. Payments are based on your income and how many dependents you are responsible for. The best part is payments can be as low as zero dollars a month (sometimes).

Consolidate loans

Staying on top of your student loans requires a strategic plan. Consolidating your loans into one is a great way to keep yourself organized throughout the process. The following is a breakdown of what you stand to gain once your loans are consolidated:

• Fixed interest rate.
• Lower payments.
• Extended payback time.

While there are many advantages to consolidating your debt, it is important to understand your new agreement before making the final decision to consolidate since there can be some downsides, such as forfeiting a grace period.

Pay extra

You might be wondering why it would be worth your while to pay extra on your student loans. By paying extra, you can lower the amount you pay toward interest. As interest rates can vary between 4.21% and 8.05%, you may be paying a substantial amount of money that is not going toward your principal. Create a budget that allocates an additional amount that you feel comfortable with to go toward your monthly payments.

Automate payments

Automated payments can save you frustration and money. By opting for automatic payments, you won’t have to worry about making your payments on time, late fees or your credit score being affected. Additionally, many lenders will offer a phenomenal discount of 0.25% when you enroll.

Manage your student loans stress-free by picking the right repayment plan for you, consolidating your loans, paying extra and opting for automatic payments.

Lindsey Certonio is a project manager at Fullcast, a Silicon Slopes-based end-to-end RevOps platform that allows companies to design, manage and track the performance of their revenue-generating teams.

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