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College students are graduating with tens of thousands of dollars in student loan debt, which can make it difficult to make monthly student loan payments, let alone get by financially each month.

For those looking to get some help, the federal government offers some potential options, including income-driven repayment plans and the Public Service Loan Forgiveness program. Or refinancing your student loans can also help you potentially lower your interest rate or your monthly payment.

One option you may not be aware of is to apply for repayment program “grants.” These grants function similarly to scholarships in that you don’t have to pay them back, at least not monetarily. Instead, post-graduation, you’ll typically agree to work in a certain field for a set period in exchange for the help.

There are several student loan repayment programs that act like grants but don’t technically refer to themselves as such. You might consider them grants to pay off student loans, however, because they don’t require you to pay back the money plus interest.

Here are a few repayment programs to look into:

National Health Service Corps Loan Repayment Program

Qualifying health care providers can receive up to $50,000 if they agree to a two-year commitment to work in a Health Professional Shortage Area (HPSA).

You can apply if you’re a licensed primary care physician, nurse practitioner, certified nurse-midwife, physician assistant, dentist, dental hygienist, or a qualifying behavioral and mental health provider.

In addition, to be eligible for this grant you must have qualifying student loan debt and also be:

•  A U.S. citizen or national

•  As applicable, a provider or be eligible to be a provider in Medicare, Medicaid, or the State Children’s Health Insurance Program

•  Fully trained and licensed to practice

National Institute of Mental Health Loan Repayment Program

If you work or plan to work in biomedical, behavior, social, or clinical research, you may qualify for a grant to pay off student loans up to $35,000. You can apply the award to qualifying undergraduate, graduate, or medical school loans.

In return, you’d “agree to engage in at least two years of qualified research funded by a domestic nonprofit organization,” according to the National Institute of Mental Health .

NURSE Corps Loan Repayment Program

The Health Resources and Services Administration provides this program to registered nurses (RN), advanced practice registered nurses (APRN), and nurse faculty with nursing debt that meets the program’s qualifications. To qualify, you must also:

•  Commit to working at least two years in an eligible Critical Shortage Facility (CSF) in a high-need area or an accredited school for nursing

•  Have received your nursing education in an accredited school of nursing in the U.S.

If you qualify, you may receive up to 85% of unpaid nursing debt over three years—that’s 60% over the first two years with an option to extend to a third year for an additional 25%.

Indian Health Service Loan Repayment Program

This grant is for health professionals who agree to work in an American Indian or Alaska Native community for at least two years. In exchange, you can receive up to $40,000 in grants to help pay off student loans.

Recipients also have the option to extend their contract each year until their debt is completely paid.

Veterinary Medicine Loan Repayment Program

If you’re a veterinarian working in an area designated by the National Institute of Food and Agriculture as a “shortage area,” you may be eligible to receive up to $25,000 each year for a (minimum) three-year service commitment. The grant is reserved only for veterinary school student loan debt, however.

John R. Justice Student Loan Repayment Program

This program provides assistance to local, state and federal public defenders, and state prosecutors. To qualify, you would agree to work as a prosecutor or public defender for at least three years.

In return, you may be eligible to receive up to $10,000 in assistance per year up to a total of $60,000.

Department of Justice Attorney Student Loan Repayment Program

If you agree to a three-year service obligation with the Department of Justice as an attorney, you may be able to qualify for loan repayment assistance of up to $6,000 per year in matches based on your payments.

To be eligible, you must have at least $10,000 in qualifying federal student loan debt. The maximum amount you can possibly qualify for is $60,000 in total.

Armed Forces Repayment Programs

Each major branch of the military offers free grants to help enlisted service members pay off student loans. Here’s a high-level overview of some of the notable programs:

•  Army Student Loan Repayment Program (College Loan Repayment Program): If you meet specific qualifications and are active duty, Army Reserve, or Army National Guard Soldiers, you can get up to $65,000 of your student loans repaid by the Army.

•  National Guard Student Loan Repayment Program: If you enlist for a minimum of six years and satisfy other requirements , you can receive up to $50,000 in assistance.

•  Navy Student Loan Repayment Program: With a three-year commitment, you may be eligible to receive up to $65,000 in repayment assistance over that time.

•  Air Force JAG Student Loan Repayment Program: Once you’ve completed one year of service as a JAG officer , you may be eligible to receive up to $65,000 in grants to pay student loans over a three-year period.

State-Based Grants

Several states offer free grants to help pay student loans for borrowers who agree to live and work in the state, usually in a specific field. Here are some examples:

•  New York State Young Farmers Loan Forgiveness Incentive Program: Eligible college graduates pursuing a career in farming who agree to operate a farm in New York state for at least five years can receive up to $10,000 per year to help pay their student loans.

•  North Dakota Science, Technology, Engineering, and Mathematics (STEM) Student Loan Program: Qualifying college graduates who work in STEM-related fields in North Dakota may be eligible to receive up to $1,500 per year and up to $6,000 total student loan forgiveness.

•  Pennsylvania Primary Health Care Loan Repayment Program: If you’re a physician, dentist, or another practitioner who commits to two-years in an underserved area in Pennsylvania , you may be eligible to receive between $30,000 and $100,000 in student loan repayment assistance.

•  California Bachelor of Science in Nursing Loan Repayment Program: RNs living in California who agree to a one-year service commitment may receive up to $10,000 to help repay their student loans. They can also renew that commitment for up to two more years and receive up to $10,000 each year they qualify.

•  Maine Alfond Leaders Program: If you live in Maine and work in a STEM-designated job, you may qualify for repayment of up to half of your outstanding student loan debt, with a $60,000 maximum.

What to Do While You’re Waiting for Your Grant Money

If you qualify for a grant or student loan repayment based on your career or where you choose to work and live, the assistance can make a world of difference for your student loan repayment strategy.

But in the meantime, you’ll still have to make regular payments on your loans. One way to potentially get a lower payment or interest rate is student loan refinancing.

Depending on the terms you qualify for, you could significantly reduce the amount of money you pay in interest over the life of the loan. Or you could extend your loan term and potentially reduce your monthly payments, but that would mean you’d pay more in interest overall (longer term=more payments).

One thing to keep in mind, though: If you’re applying for grants that only apply to federal loans, you may want to hold off on refinancing, because you’ll lose your federal loan benefits when you refinance.

If you qualify to refinance with SoFi, there are no origination fees or prepayment penalties. You can even use our convenient student loan refinancing calculator to compare your current loan with a SoFi loan to get an idea of how refinancing could help you accelerate your student loan repayment.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

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A lot of things keep us up at night. Finances. Dealing with family during the holidays. Finances. An awkward interaction with a coworker. Finances. An argument with a partner. Finances.

You get it.

Specifically, student loan interest rates could be causing your finance-related insomnia. But what is a high student loan interest rate, and how can you tell if yours is too high? To learn this, it’s important to understand the factors that influence interest rates in the first place.

What Are Interest Rates?

Without interest, lenders have no way of making a profit off of what you borrow. In their minds, everyone wins: you get the money you need, they eventually get their money back. And the interest yields earnings for the lender.

Interest rates can vary drastically depending on the type of loan, the lender, the amount you borrow, and often your credit history or financial profile.

Are Your Interest Rates Fixed or Variable?

Fixed interest rates are interest rates that don’t change over the life of the loan. Variable interest rates fluctuate based on market indexes . This means that the interest payment you pay one month might not be what you pay the next month. Sometimes, variable interest rates start out lower than their fixed interest rate counterparts.

The choice you make for your loan might depend on a number of factors. If you’re the type to feel more comfortable knowing you’re paying the same rate no matter what, a fixed interest rate might be the better option for you. If you’re willing to take a risk, a variable interest rate could be the way to go. But again, it’s a risk: your rate could increase based on how the market is doing.

You may want to check your loan terms to see which type of rate you have. If you have more than one student loan, make sure to review them all.

Federal vs Private Student Loan Interest Rates

Federal student loans come with fixed interest rates. And those interest rates are set by Congress. If you take out a federal student loan, the fixed interest rates will not change for the life of the loan. Interest rates for federal student loans are based on the 10-year treasury note and are set annually, and go into effect each July for the coming school year. (You can learn more about federal student loan interest rates here .)

While federal student loan interest rates are set by Congress, private student loan rates are set by each individual lender. Additionally, the rate you get is often determined by your creditworthiness. If you’re new to borrowing money, lenders might not see you as responsible with credit—because you haven’t proved you are yet. And if you’ve proven to be “bad” with credit in the past (aka having a lower credit score, for example), lenders may be less confident about loaning money to you.

For private student loans, there are a few things that determine your interest rate, like your credit score and credit history. Each lender has different credit standards to determine what is best for each borrower.

Student Loan Consolidation

If you’ve got federal student loans, you may be eligible to consolidate your student loans through the federal government with a Direct Consolidation Loan. Consolidating your student loans this way is essentially combining all of your loans into one with a new interest rate and term.

Your new interest rate under a Direct Consolidation Loan is the weighted average of your old loan rates, rounded up to the nearest one-eighth of 1%. Only federal student loans can be consolidated under a Direct Consolidation Loan.

Student Loan Refinancing

Student loan refinancing is similar to consolidation, but is handled differently. Refinancing is offered via private lenders, not the federal government. And instead of combining all your loans and averaging out the interest rate, you can get one new loan to replace all of your old ones, along with a new interest rate.

Your interest rate isn’t based on the interest rates of your former loans. Instead, it’s based on your current creditworthiness and other factors that vary by lender. For example, you may qualify for a lower interest rate when you refinance if you have a solid credit score and history, and can demonstrate you’re responsible enough to pay back your loan.

With SoFi, you can even refinance both federal and private student loans. If you have both, you might want to consider refinancing to see if you can lower your interest rate.

Income-Based Repayment

Income-Driven Repayment (IDR) plans are available to federal student loan borrowers who are looking to manage their payments. For an income-driven repayment plan, monthly payments are based off your discretionary income and the size of your family.

This can be helpful because if you’re not making as much as you’d expect while also financially supporting others, IDR plans help make payments more manageable, allowing you to continue making payments you might otherwise be missing.

Missing payments can cause you to become delinquent or eventually default on your student loans, which could crush your credit score.

There are different IDR plans to choose from. But if you’re still making payments after 20 or 25 years—depending on the plan —the remainder of your loan may be eligible for forgiveness. (Note: if you refinance your federal loans with a private lender, you will no longer be eligible for IDR plans and other federal student loan benefits.)

Getting a Cosigner

When you’re looking to refinance your loan, you may not have top-notch credit to land you an awesome interest rate. If that’s the case, you might want to explore cosigner options.

A cosigner can be anyone that agrees to pay your loan in your place if you fail to do so. Does this sound like a major responsibility and an even more significant ask? It is. Making a cosigner liable for you is a big deal. Failing to pay back your loan will still hurt your credit score. But with a cosigner, it will also hurt their credit score.

Whoever your cosigner is—a partner, a friend, a family member—having a plan in place to repay your new loan, including contingencies for potentially coming up short and needing immediate assistance, can provide reassurance to them.

You’ve graduated from college, degree in hand, and are headed into the workforce. After countless applications, phone screens, and in-person job interviews, you’ve done it—you’ve secured your first, full-time job as an adult.

As you experience the thrill of getting your first paycheck, it can be tempting to splurge on a celebratory dinner or a new outfit for work. But before you spend your paycheck on something indulgent, it could be worth thinking about how to spend it more wisely. Here are our best tips for spending your first paycheck as you start your new job.

Set Up Your 401(k)

You’ll learn pretty quickly that you’ll end up losing a decent chunk of change to taxes. One way to offset that is to invest money in tax-advantaged accounts, including a 401(k). As a part of your offer package, you will likely receive information on the company’s benefits—including any healthcare and 401(k) options. It can seem easy to brush this information off as you get started in your career, but reviewing it closely is an important part of deciding whether to accept a job in the first place.

A 401(k) is an employer-sponsored retirement plan that allows both you and, depending on your plan, your employer to contribute to the account. Employers may offer a contribution match of a certain percentage or specific amount. Each employer offers contribution matches at their discretion, so if you’re not sure what your company offers, check with HR or consult company policy.

It’s never too early to start saving for retirement. The earlier you begin making contributions, the more time you give yourself to take advantage of compounding. Basically, the interest you earn can then be reinvested, allowing your money to grow over time.

Consider investing at least enough to take advantage of your employer match. If your employer matches 6%, contribute 6%. That way you’re not leaving any money on the table. (Once you set it up, the money you contribute will probably be taken directly out of your paycheck.)

Set Up a Checking and Savings Account

Before you get your first paycheck, set up a checking and savings account. If you already have these types of accounts, now is a good time to assess whether they are still a good fit for your current financial needs. Take the time to review interest rates at various banks and online financial companies.

For example, SoFi Checking and Savings is a checking and savings account that earns you more and costs you nothing. You can easily access your money online or withdraw cash fee-free from 55,000+ ATMs worldwide.

Once you’ve set up your checking and savings accounts, consider setting up direct deposit. That way you don’t have to worry about depositing a check every time you get paid and you can start earning interest on that money as soon as it is payday.

You can also consider keeping your spending money in a checking account and setting up automatic transfers to your savings account. It’s an easy way to force yourself to save some cash at the beginning of your career.
An interest-bearing savings account is a great place to store your emergency fund. Conventional wisdom suggests saving anywhere from three to six months of living expenses to cover emergency expenses, such as unexpected medical bills or car repairs.

We know you just got started at your new job and may not be ready to think about these scenarios, but, in the event that you get laid off or the company goes out of business, having an emergency fund will allow you to stay afloat until you find your next gig. Even contributing $50 per paycheck to your emergency fund can help set you up with a little safety net should something unexpected happen.

Make Payments for Student Loans

Another important expense you should factor into your first paycheck is student loan payments. Even if you start your new job during your student loan grace period, you should probably consider your monthly payments and start setting the money aside. If you have unsubsidized loans, use the money to make interest-only payments on your loans.

If you have subsidized loans, it’s possible to save some, then use the money you have saved to make a lump-sum payment on the loans when your grace period ends. Both of these options can help set you off on the right foot when it comes to student loan repayment. By factoring your student loan payments into your budget upfront, you get used to not using that money for casual spending on things like dinner out or drinks with friends.

It’s also a good time to review your repayment plan on your student loans. If you have federal student loans there are a variety of repayment plans to choose from, including the standard 10-year repayment plan and four income-driven plans. If you have a combination of private student loans and federal student loans, you could consider refinancing them with a private lender, like SoFi, in the hopes of securing a lower interest rate.

With a lower interest rate you could potentially reduce the money you spend on interest over the life of the loan. This could be a great option if you are on a standard repayment plan and are interested in securing a lower interest rate.

If you’re taking advantage of federal programs like deferment, forbearance, income-driven repayment, or Public Service Loan Forgiveness, refinancing your student loans may not be for you, as you will no longer qualify for those programs.

To see how much refinancing could impact your loan, take a look at SoFi’s student loan refinance calculator. When you refinance with SoFi there are no prepayment penalties or origination fees.

Start an IRA

Even if you’re already contributing to a 401(k), setting up an IRA could be beneficial. There are two kinds of IRAs, traditional and Roth. When you contribute to a traditional IRA, the contributions are deducted from your taxes, meaning you’ll pay taxes on distributions when you retire.

When you contribute to a Roth IRA, your contributions are taxed upfront but can be withdrawn in retirement tax-free—and that includes any capital gains you’ve earned.

You can contribute up to $6,000 to either type of IRA annually. If you are over the age of 50, you can contribute an additional $1,000 as catch-up contributions.

An added benefit to opening a Roth IRA: You could use it to fund part of a down payment on the future purchase of a home. As long as the Roth IRA has been open for five years, you’re allowed to withdraw $10,000 from your Roth IRA to buy your first home without any taxes or penalties. This could be a good start for saving for retirement or for your first house.

Still Have Money Left? Treat Yourself

If after paying your monthly expenses and contributing to your various savings goals you still have money leftover, you can use it to splurge on something you’ll really enjoy like trying out a new restaurant, buying tickets to a concert or a sports game, or having a night out on the town.

Or, you could use the additional money to save up toward another short-term goal—maybe an international adventure, a TV, or a new bed frame. Or if you’re feeling frugal, use the extra money to make an additional payment on your student loans.

Paying more than the monthly minimum is one of the fastest ways to accelerate your student loan repayment. At the end of the day, you’re working to earn money to live your best life, so make sure you are enjoying it and saving for your long-term financial goals at the same time.

The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Notice: SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. SoFi always recommends that you consult a qualified financial advisor to discuss what is best for your unique situation.
SoFi Checking and Savings®
SoFi Checking and Savings is offered through SoFi Securities LLC, member FINRA / SIPC . Neither SoFi nor its affiliates are a bank.

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Whether you just got married or you’ve been with your spouse for years, you may be thinking about combining your finances.

Doing so can be challenging, especially if you both have different perspectives on managing money. But it can also help simplify your financial plan and potentially even help you save money.

With an average of $37,172 in student loan debt per borrower , it’s more important than ever to find ways to simplify and accelerate the debt repayment process. Refinancing student loans with a spouse could help you achieve both goals.

Consolidating Through the Department of Education

If you have federal student loans, you can consolidate your loans with a Direct Consolidation Loan .

If you do, the Department of Education will take the weighted average of the interest rates from all of your loans and round it up to the nearest one-eighth of a percent.

This means that consolidating your loans with the government may help simplify your loan repayment, replacing several monthly payments with just one.

Consolidating student loans with a spouse isn’t an option through the Direct Loan Consolidation program. You can only combine loans with your name on them, making it impossible to add your spouse.

Refinancing Your Student Loans

While the federal government won’t let you consolidate student loans with your spouse, a private student loan lender, like SoFi, will.

The process isn’t always straightforward, though. Typically, you would apply for a refinancing loan and add your spouse as a cosigner. Not only would this help you combine your finances, but it could also help you spend less money in interest on your new loan.

That’s because your interest rate is typically determined by your creditworthiness and income, and adding a cosigner with a strong credit history and solid income can help you secure a lower rate, even if your credit history is strong on its own.

To give you an idea of how much you can save on interest, let’s say your (not consolidated) federal student loan debt is $30,000 with a weighted average interest rate of 6%. (For the record, the 6% interest rate is a hypothetical based on a federal graduate and undergrad loans, which currently have fixed interest rates of 5.05% on the low end and 7.6% on the high end, depending on the loan.) On a 10-year Standard Repayment Plan , your monthly payment would be around $333, and you’d pay about $9,967 in interest over the life of your loans.

Now, let’s say you were to refinance your student loans with a private lender and qualified for a 5% fixed rate with your spouse as a cosigner. If you were to keep a 10-year repayment term, your monthly payment would be about $318, and you’d pay around $8,184 in interest.

That’s a savings of nearly $1,783 that you can use for other financial goals. To see how refinancing could impact your student loans, you can take a look at our easy-to-use student loan refinance calculator.

Considerations to Think About

Student loan debt and marriage may be a challenge, so it’s important to make sure refinancing student loans with your spouse is a good choice for your situation.

The primary consideration is that both you and your spouse as a cosigner would be legally responsible for paying off the debt. This means that if you experience financial hardship and miss payments or default, it could ruin both of your credit histories.

Some student loan refinance lenders offer a cosigner release program that allows you to remove a cosigner after a set number of consecutive, on-time payments.

Another thing to consider is that refinancing federal student loans will result in the loss of certain benefits the Department of Education provides. Specifically, private lenders typically don’t offer income-driven repayment plans. Also, you won’t be eligible for certain federal student loan programs, including Public Service Loan Forgiveness.

So as you consider the benefits of consolidating student loans with a spouse through refinancing, make sure you also include the drawbacks in your process.

Finding Out Your Potential Savings

Having student loans in a marriage can be challenging, but with open communication, you can stay on track.
If you’re even remotely considering refinancing your student loans with your spouse as a cosigner, check your rate offers to see if doing so can save you money. Whether or not you qualify for a lower interest rate, exploring the option may help make your decision easier.

The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Notice: SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. SoFi always recommends that you consult a qualified financial advisor to discuss what is best for your unique situation.
The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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While we’re already a ways into the year, it’s important to reflect on those resolutions that are meaningful and actually achievable. It doesn’t matter how big or small they are—as long as you stick with them and work to make them a reality.

Paying off your student loans may sometimes feel like a pipe dream, but it doesn’t have to. Of course, if you have other forms of debt, those might take precedence over your student loans. For example, if you have credit card debt with a higher interest rate, you may want to be focusing your efforts there (while paying the minimum on your student loans, of course).

But if knocking out a chunk of your student loan debt is your top priority, let’s talk about how to make a bigger dent on your loans this year. As long as you tell your loan servicer you’d like to have extra money go toward your principal instead of interest, you could start to chip away at that balance a little at a time. Here are a few ways you can make student loan payments bigger in the coming year.

1. Budgeting for It

Review your budget to see if you can move money around. Perhaps try going to one less work lunch a month or one less coffee shop each week. You can put that extra cash toward your student loan principal each month.

If you’re having trouble making ends meet and you can barely afford the minimum payment, this might not be the right option for you. But if you have the opportunity to chunk away at your loan by spending less elsewhere, it may be worth trying.

2. Putting Your Bonuses Back into It

Sometimes the minimum payment may be all that you can afford, which is still okay—but when you get a little extra cash, that could be a great opportunity to get ahead on your student loans.

If you get a raise, you can start to increase your monthly payments. A little bit can still make a difference every month and may help you pay off your loan sooner.

If you get a bonus or a tax refund, you can make a big, one-time payment. And as we said earlier, consider contacting your loan servicer to let them know the extra payment needs to go towards your principal balance—otherwise your lender may be required to apply your extra payment to your outstanding interest first.

3. Finding Your Match

Sometimes, companies will match student loan payments up to a certain percent, like a retirement match. See if your company offers this and if so, consider taking advantage of what is essentially “free” money.

If you aren’t sure what student loan-related benefits your company offers (if any), it might be a good idea to schedule a sit-down with Human Resources. Student loan repayment is becoming a more popular employer benefit as student loan debt continues to rise. As millennials further populate offices across the U.S.—they’ll make up 75% of the workforce by 2025—they’re making it clear to their employers that student loan reimbursement is a benefit they want.

4. Refinancing Your Student Loans

Refinancing your student loans can be a smart way to potentially pay off your loan sooner. While refinancing may help you secure a lower interest rate on your loans, you could also shorten your loan term such that you’re required to make higher monthly payments, thus chipping away at your debt faster.

For example, let’s say you want to pay your loan off in, say, five years instead of 10. Refinancing may allow you to select higher monthly payments and a shorter term to meet that goal. Refinancing can help lower your interest rate, which may help you pay off your loan faster if you also shorten your loan term.

A lower interest rate and shorter term could ultimately mean you pay less interest over the course of your refinanced loan. One caveat to keep in mind: If you refinance with a private lender, you’ll lose access to federal loan benefits like income-driven repayment plans, forbearance, and deferment.

5. Getting a Side-hustle

Whether you capitalize on your hobby or you like to walk the neighborhood dogs, a side-hustle can help you make some cash.

Sometimes day jobs don’t pay enough for “extras.” If that’s the case for you, getting a side-hustle can be another way to earn additional income to pay for those “extras.” And one of those extras might be increasing your loan payments.

If your student loan payment strategy is to put more money toward your principal but your full-time job doesn’t cover it, there are plenty of side-hustles available. If you’re crafty, you can sell your goods online or at a local market. If you’re a math whiz, you could consider tutoring high school or college students. And if you have an extra room, you could think about renting it out.

The options are endless! And who knows? Maybe your side-hustle will start earning you enough to become your full-time gig.

6. The Debt Snowball Method

Slogging through debt isn’t that fun. But if you’re only earning enough to make minimum payments—or not make any payments at all—there are a few debt elimination tactics that may be worth trying. One of those is the debt snowball method.

The debt snowball method is when you pay off your debt in order from smallest balance to largest balance, regardless of interest rate. You’d continue to make minimum payments on all your different debts except the smallest—that’s where you’d pay as much as you possibly can.

When the smallest debt is paid off, you would then start to pay off the next smallest debt while still making minimum payments on the rest. You’d repeat this until all your debt is paid off.

The downside to this method is that, because you’re disregarding the interest rates attached to your loans, you may end up paying off lower-interest loans before the ones with high interest rates. And that could mean paying more interest in the long run.

Making Your Contributions More Impactful?

Regardless of how you choose to make student loan payments this new year, remember there are options. As we discussed, one such option is refinancing, which could get you a lower interest rate than what you’re currently paying on your student loans.

If you’re committed to increasing your student loan contribution this year, consider learning more about student loan refinancing with SoFi. With increased contributions and a shorter loan term, you could get out of debt faster than you thought possible.

The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Notice: SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. SoFi always recommends that you consult a qualified financial advisor to discuss what is best for your unique situation.

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