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3 Ways to Decide Which Student Loan to Pay off First

There are a few methods to narrow down which student loan to pay off first, such as focusing on private student loans or the highest-interest loan.

Dori Zinn Dori Zinn Edited by Ashley Harrison Updated March 31, 2022

Our goal is to give you the tools and confidence you need to improve your finances. Although we receive compensation from our partner lenders, whom we will always identify, all opinions are our own. Credible Operations, Inc. NMLS # 1681276, is referred to here as "Credible."

Deciding which student loans to pay off first depends on two main factors:

  • The types of loans you have
  • How much money you can afford to pay toward your loans

You’ll need to consider your individual financial situation, too — for example, in some cases, it could be a better idea to pay off loans with fewer benefits (like private student loans) first rather than simply focusing on the loan with the highest interest rate.

Also be sure to think about what payment method best motivates you so you’ll stick to your payoff plan.

Here are three options for which student loans to pay off first:

  1. Focus on private student loans first
  2. Put extra money toward the loan with the highest interest rate
  3. Pay off the loan with the lowest balance first

Option 1: Focus on private student loans first

Private student loans tend to have higher interest rates compared to federal student loans. If this is the case with your private loans, you might want to focus on paying those off first before turning to federal student loans. This way, you can save money on interest charges.

If you decide to focus on private loans first, follow these steps:

  1. Continue making minimum payments on your federal student loans.
  2. Put all of your extra cash toward your private student loans until they’re paid off.
  3. Move on to repaying your federal student loans.
Tip: Most lenders don’t charge prepayment penalties, which means you can pay off your private loans early without any additional fees.

If you have multiple private student loans, you could also consider combining them through student loan refinancing to make your repayment more manageable.

Depending on your credit, you might get a lower interest rate, which could save you money on interest and potentially help you pay off your loans early.

Keep in mind: You can also refinance federal student loans along with your private loans — however, doing so will cost you your federal protections, such as access to income-driven repayment plans and student loan forgiveness programs.

Additionally, you’ll no longer be eligible for the suspension of federal payments and interest accrual through the CARES Act due to the COVID-19 pandemic.

If you decide to refinance your student loans, be sure to shop around and consider as many student loan refinance companies as possible to find the right loan for you. Credible makes this easy — you can compare your prequalified rates from our partner lenders in the table below in two minutes.

LenderFixed rates from (APR)Variable rates from (APR)Loan terms (years)

brazos student loan refinance

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
4.4%+ 4.67%+ 5, 7, 10, 15, 20
  • Fixed APR: 4.4%+
  • Variable APR: 4.67%+
  • Min. credit score: 720
  • 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: 720
  • 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
5.39%+1 5.39%+1 5, 7, 10, 15, 20
  • Fixed APR: 5.39%+1
  • Variable APR: 5.39%+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
5.99%+2 5.99%+2 5, 7, 10, 12, 15, 20
  • Fixed APR: 5.99%+2
  • Variable APR: 5.99%+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

edvestinu student loan refinance

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
7.41%+5 7.39%+5 10, 15, 20
  • Fixed APR: 7.41%+5
  • Variable APR: 7.39%+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
5.08%+3 4.53%+3 5, 7, 10, 12, 15, 20
  • Fixed APR: 5.08%+3
  • Variable APR: 4.53%+3
  • Min. credit score: 680
  • Loan amount: $10,000 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
5.61%+4 6.61%+4 5, 10, 15, 20
  • Fixed APR: 5.61%+4
  • Variable APR: 6.61%+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, returned payment 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
4.49%+ 4.76%+ 5, 7, 10, 15
  • Fixed APR: 4.49%+
  • Variable APR: 4.76%+
  • Min. credit score: 700
  • Loan amount: $5,000 to $300,000
  • Loan terms (years): 5, 7, 10, 15
  • Max. undergraduate Loan Balance: $125,000
  • Time to Fund: 10 to 30 days
  • Repayment options: Immediate repayment, forbearance
  • Fees: Late fee
  • Discounts: Autopay
  • Eligibility: Must be a U.S. citizen or permanent resident and have already graduated with at least an associate degree from an eligible institution
  • Customer service: Email, phone
  • Soft credit check: Yes
  • Cosigner release: After 12 months
  • Loan servicer: LendKey Technologies Inc.
  • Max. graduate Loan Balance: $175,000
  • Credible Review: LendKey Student Loans review
  • Offers Parent PLUS Refinancing: No


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
5.5%+ N/A7, 10, 15
  • Fixed APR: 5.5%+
  • 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
5.29%+ N/A5, 10, 15
  • Fixed APR: 5.29%+
  • 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
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Learn More: When to Refinance Student Loans

Option 2: Put extra money toward the loan with the highest interest rate

Focusing on repaying your loan with the highest interest rate first can help you save the most money on interest charges. This is commonly known as the debt avalanche method.

If you decide to use the debt avalanche method, follow these steps:

  1. Pay extra on the loan with the highest interest rate while continuing to make minimum payments on your other loans.
  2. When the first loan is paid off, move on to the loan with the next-highest interest rate.
  3. Repeat until all of your loans are repaid.
Tip: While the debt avalanche method can help you save money on interest, it can also take a long-time to see your results.

If you’re more motivated by small wins, you might consider using the debt snowball method instead.

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.

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Check Out: Should I Pay Off Student Loans or Invest?

Option 3: Pay off the loan with the lowest balance first

Another alternative to consider is to concentrate on paying off your lowest student loan balance first — also known as the debt snowball method. While you won’t necessarily save much in interest this way, you’ll be able to see more immediate success, which can help keep you motivated.

If you decide to use the debt snowball method, follow these steps:

  1. Continue making minimum payments on all your loans while putting extra cash toward the loan with the lowest balance.
  2. Once this loan is paid off, move on to the next-smallest loan.
  3. Repeat until all of your loans are repaid.
Tip: While the debt snowball method can be a good way to enjoy small wins on your payoff journey, it might not save you any money along the way.

If you’d prefer to see more interest savings and can wait to see the fruits of your labor, then the debt avalanche method might be a better fit for you.

You can estimate how long it’ll take to pay off your student loan debt using our student loan repayment calculator below. Use the slider to see how increasing your payments or getting a lower interest rate can change the payoff date.

Enter loan information

? Enter the remaining balance of your loans $
? Enter the average annual interest rate of your loans %
? Enter the amount of time left to repay your loan years

+ $0
Total Payment $
Total Interest $
Monthly Payment $

If you increase your payments by $ monthly on your $ loan at %, you will pay $ a month and pay off your loan by Jan 2021.


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Learn More: How Long Does It Take to Pay Off Student Loans?

What is the most effective way to pay off student loans?

Ultimately, the best way to pay off student loans is the strategy that you can commit to — no matter which one it is.

For example, some people work better with small goals that they can achieve quickly, while others are motivated by seeing interest savings over time. Whichever method you choose, just be sure you can stick to it.

As you consider these payoff options, also make sure that the method you choose fits your:

  • Income
  • Debt
  • Financial mindset
  • Money goals
Tip: If you’ve laid out your loans and budget and realized you don’t have any extra money to put toward your student loans, that’s OK.

Keep making on-time monthly payments for now to continue building a positive payment history, and consider exploring other options down the road if you find yourself with cash to spare.

Check Out: Can You Refinance a Student Loan to a 30-Year Term?

Which student loan should I pay off first: Subsidized or unsubsidized?

The government pays the interest on Direct Subsidized Loans while you’re in school, which can help reduce your overall repayment costs. But with Direct Unsubsidized Loans, you’re responsible for all the interest that accrues — which means you might end up with a higher balance.

If this is the case, it could be a good idea to pay down your unsubsidized loans before tackling your subsidized loans.

Learn More: How to Refinance Student Loans With Bad Credit

Things to consider when paying off student loans

As you make your student loan payoff plan, here are a few other important points to think about:

Refinancing your student loans

Most borrowers leave school with multiple student loans to handle, which can make it difficult to manage repayment. Through refinancing, you can consolidate your student loans so you have just one loan and payment to deal with.

Additionally, you might qualify for a lower interest rate through refinancing. This could save you money on interest and even help you pay off your loans more quickly.

Tip: You could also opt to extend your repayment term to lower your monthly student loan payment — though this means you’ll pay more in interest over time.

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

Find out if refinancing is right for you

  • Compare actual rates, not ballpark estimates – Unlock rates from multiple lenders in about 2 minutes
  • Won’t impact credit score – Checking rates on Credible won’t impact your credit score
  • Data privacy – We don’t sell your information, so you won’t get calls or emails from multiple lenders

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Other forms of debt

In some cases, it could be a good idea to focus on paying off other forms of high-interest debt before turning to student loans. For example, credit cards often come with higher rates than student loans, so it might be better to pay down credit card balances first.

However, keep in mind that everyone’s financial situation is different — so be sure to carefully consider each loan’s terms before deciding where to start.

Check Out: Can’t Pay Your Student Loans? What You Need to Know

Overextending yourself financially

While paying off debt can be an excellent goal, it’s important to avoid paying too much toward your debt and accidentally overextending yourself. Be sure to review your budget to determine how much you can realistically afford to pay toward your debt each month.

Additionally, be sure to set aside some money in your budget to put toward savings. By building an emergency savings fund, you can avoid having to take out additional debt in the future if unexpected expenses come up.

Tip: It’s a good idea to save enough money in an emergency fund to cover three to six months’ worth of expenses.

Also keep in mind that it’s usually not a good idea to use your emergency savings to pay off student loans or other debt. If you do so, you might not have enough money to cover other unexpected expenses — which might lead you to go into debt again.

Pay Off Your Student Loans:

  • Pay Off $30,000 in Student Loans
  • Pay Off $50,000 in Student Loans
  • Pay Off $100,000+ in Student Loans
  • Pay Off $200,000+ in Student Loans
  • Pay Off $400,000+ in Student Loans
About the author
Dori Zinn
Dori Zinn

Dori Zinn is a student loan authority and a contributor to Credible. Her work has appeared in Huffington Post, Bankate, Inc, Quartz, and more.

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