11 Ways to Lower Your Student Loan Payments

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The average monthly student loan payment is a whopping $393. With it being so high, you might struggle to afford everyday essentials. Here are several different ways you can lower your student loan payments to give you some room in your budget.

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1. Sign up for an Extended Repayment Plan
2. Enroll in a Graduated Repayment Plan
3. Sign up for an Income-Sensitive Repayment Plan
4. Apply for an income-driven repayment plan
5. Sign up for automatic payments
6. Make all of your payments on time
7. Consolidate your federal loans
8. Ask your employer for repayment help
9. Apply for repayment assistance
10. Refinance your student loans
11. Get help from the state

1. Sign up for an Extended Repayment Plan

If you have federal student loans and need a lower payment and are willing to make payments over a longer repayment period, an Extended Repayment Plan might be for you. Under this approach, your repayment term could be as long as 25 years, dramatically reducing your monthly payment. To qualify, you need to have at least $30,000 in Direct or FFEL federal loans.

Because of the longer repayment term, you could pay thousands more than you originally borrowed due to interest. However, the tradeoff might be worth it to get a lower payment and make room in your budget now.

2. Enroll in a Graduated Repayment Plan

A Graduated Repayment Plan is perfect for someone who doesn’t qualify for an income-driven repayment plan for their federal loans, but can’t afford their payments under a standard 10-year term.

With a Graduated Repayment Plan, your payments start out very low, regardless of your income. Every two years, your payment increases. After 10 years of making payments, your loans are paid off.

3. Sign up for an Income-Sensitive Repayment Plan

Under an Income-Sensitive Repayment Plan, your federal loan payments are based on your income. After 15 years, your loans are paid off in full. You’ll pay more in interest than you would under a Standard Repayment Plan, but you’ll get more breathing room in your monthly budget.

Only those with FFEL loans qualify; Direct Loans are not eligible.

4. Apply for an income-driven repayment plan

If you have federal Direct Loans and need to reduce your monthly bill, consider applying for an income-driven repayment (IDR) plan. With IDR plans, your repayment term is extended to 20 to 25 years, and the loan servicer sets your monthly payment at a percentage of your discretionary income. Some people qualify for a payment as low as $0.

There are four different IDR plans:

• Income-Based Repayment (IBR)
• Income-Contingent Repayment (ICR)
• Pay As You Earn (PAYE)
• Revised Pay As You Earn (REPAYE)

5. Sign up for automatic payments

If you sign up for automatic payments, some lenders will reduce your interest rate by 0.25% to 0.50%. That might sound like a tiny difference, but that adjustment in interest rate can add up to significant savings over time.

Check with your lender to see if they offer an autopay discount, so you can take advantage of it.

6. Make all of your payments on time

Make sure you make all of your payments on time. Not only will that help you avoid extra charges and late fees, but you might even qualify for a discount. Some lenders give discounts as high as 0.25% for consistently making your payments by the due date.

7. Consolidate your federal loans

If you have multiple federal loans, one way to streamline your payments and qualify for a lower payment is to consolidate your student loan debt with a Direct Consolidation Loan.

With this approach, you take out a Direct Consolidation Loan for the total amount of your current federal loans. Going forward, you’ll have just one monthly payment and one due date. You can also extend your repayment term, which will help reduce your monthly bill.

But keep in mind, extending your term means you’ll be paying your loans longer and end up paying more in interest over the life of your loan. So carefully weigh the pros and cons before doing so.

8. Ask your employer for repayment help

It might sound too good to be true, but some employers will help you with your student loan payments. According to the Society for Human Resource Management, 4% of employers offer repayment assistance to their employees.

Contact your company’s human resources department to see if this benefit is offered — or if it can be offered in the future.

9. Apply for repayment assistance

Depending on your occupation, you might qualify for repayment assistance. For example, doctors, lawyers, and MBA graduates can qualify for thousands of dollars to pay off their loans. In return, you’re expected to dedicate some of your career to underserved areas, but it can be a great way to significantly reduce your loan balance.

10. Refinance your student loans

If you have private student loans, you don’t qualify for federal programs like income-driven repayment plans or Direct Consolidation Loans. However, there’s still a way to reduce your repayments: student loan refinancing.

With refinancing, you take out a new loan for the amount of your current student loans (both federal and private loans). The new loan has different repayment terms, including interest rate and loan length. If you qualify for a lower interest rate or opt for a longer repayment term, you can significantly reduce your monthly payment.

If you decide to move forward with this approach, make sure you compare offers from multiple student loan refinancing lenders, so you can find the best lender for you.

Through Credible, you can compare your prequalified rates from all of the lenders below without affecting your credit score.

Lender	Fixed rates from (APR)	Variable rates from (APR)	Loan terms (years)
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
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
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	2.24%+1	5, 7, 10, 15, 20
Fixed APR: 2.44%+1 Variable APR: 2.24%+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
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, 20 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
Fixed rate: 2.44%+1 Variable rate: 2.24%+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	1.8%+5	1.8%+5	5, 10, 15, 20
Fixed APR: 1.8%+5 Variable APR: 1.8%+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	2.39%+3	5, 7, 10, 12, 15, 20
Fixed APR: 2.47%+3 Variable APR: 2.39%+3 Min. credit score: 680 Loan amount: No maximum 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: No maximum Max. Graduate 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	3.47%+4	2.44%+4	5, 10, 15, 20
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	2.24%+ 7	N/A	5, 7, 10, 15, 20
Fixed APR: 2.24%+ 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	3.05%+	3.05%+	7, 10, 15
Fixed APR: 3.05%+ Variable APR: 3.05%+ 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
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
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	1.99%+ 6	5, 7, 10, 15, 20
Fixed APR: 2.49%+ 6 Variable APR: 1.99%+ 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
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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: The Best Companies to Refinance or Consolidate Student Loans

Find out your loan score

If you’re wondering how competitive your loan is, the loan score tool below can help. Just enter your APR, credit score, monthly payment, and remaining balance (estimates are fine) to see how your loan stacks up.

11. Get help from the state

Where you live can have a big impact on your student loan balance. Some states offer student loan repayment assistance to attract professionals to the area. For example, North Dakota has a program that gives STEM professionals up to $6,000 in repayment assistance.

Visit your state’s education department website to see if similar programs are offered in your area.

Repaying your student loans

Keeping up with your student loan payments can be stressful and overwhelming. But if you’re wondering how to lower your student loan payments, you should know that there are several options available to you.

Compare Refinancing Rates

For more ideas on how to tackle your student loan debt, check out our guide on how to decide which loans to pay off first.

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.

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