5 ways to pay student loans that will also save you money

You’ll want to get quotes from several private lenders to find the best refinance loans, and you should also compare the repayment timeline. If you get a lower interest loan amount but take a longer time to pay it back than your current debt, you could end up paying more in the long-run since you pay interest over a more extended period.

Refinancing does require you to qualify for a lower rate to make financial sense, but if you can’t be eligible on your own, you may be able to get a cosigner to help. If you’re considering refinancing federal loans, make sure you won’t miss the advantages they provide to you that private lenders don’t.

Credible allows student loan borrowers to compare prequalified loan rates with up to 10 lenders within minutes – without any damage to your credit score.

2. Make payments during the grace period

When you’re still in school, you generally have the option to postpone payments (not make any payments) on both private and federal student loans. Federal student loans and most private loans also come with a post-graduation grace period that can last several months.

Unfortunately, interest accrues when payments are deferred on all but direct subsidized loans from the federal government. This means your loan balance grows while you’re in school and during your grace period, leaving you with a more substantial debt to pay off after you finally start sending in monthly checks.