amber is better on the app
25K+ Downloads
Download App
Should I Pay Off My Student Loans Early?

Should I Pay Off My Student Loans Early?

Uploaded on
Sep 13, 2023
Last updated on
Dec 7, 2023
Uploaded on
Sep 13, 2023
Last updated on
Dec 7, 2023
Should I Pay Off My Student Loans Early?
Pay the debt early?

Can you pay off student loans early? Even if the answer is yes, there are plenty of reasons why you should not pay your student loans early. Paying off your student loans early requires you to have a stable income and other factors to be taken into consideration. Once you have figured them out, you can think of paying off student loans early. Unlike other loans, student loans have a lower interest rate, which can help you focus on other goals, such as buying your dream home, a new car, etc. If you are still thinking of paying off your student loans early, then keep on reading this blog. We will give you all the info that you will need.

When should you pay off your student loan early?

Let's discuss when will be the perfect time for you to pay off your student loans early. There are a few boxes you need to check when you are going to repay your student loan. These boxes are a few basic indicators to help you understand if you are in the sweet spot of paying off your student loans early.

1. If you are saving a good amount of money for your retirement

If you're already investing for retirement and on schedule to meet your long-term objectives, it may make sense to put some extra money toward paying off your student loans early.

2. f your income is high enough to fund other goals

If your income is high enough that you can save for other financial goals while still having money left over, it may make sense to repay your student loans faster than usual.

3. If you have paid off your high-interest debts

If you have no credit card debt or other high-interest debts, it may be a good idea to pay off your student loans early.

Pros and cons of paying off student loans early

Should you pay off student loans early is the real question here. There are a few pros and cons that we should discuss before you make any calls to pay off your student loans early.


  1. Pay less than you will at the end: Since your student loan, like most other debt, accumulates interest when you carry a balance, paying off the loan sooner saves you money. It gives the debt less time to build, resulting in lower long-term payments.
  2. Gain a head start on other financial goals: With one fewer monthly payment to make, you'll be able to allocate money from your student loans to other uses, such as saving for a home or retirement, paying off your rent, or taking a vacation.
  3. Increase your debt-to-income ratio: Eliminating a large monthly payment may improve your debt-to-income ratio, a statistic that most lenders consider when considering your credit. With an improved debt-to-income ratio, you may be able to get lower interest rates on credit cards, mortgages, and other loans. 


Can you pay off student loans early? The answer is yes, but, there can be some cons to the decision. They are enlisted below to help you with your decision.

  1.  Increased monthly payments: You may find it difficult to pay off your student loans early, especially if you are in you just got a job or are not earning much of money. Repaying your student loans early requires you to make additional or higher payments, so only raise your student loan payments if you can manage to do so without making significant sacrifices.
  2. There are no options for student loan forgiveness: It makes no sense to repay your student loans early if you are qualified to have them forgiven after a set amount of time, dependent on your employment. You're better off making the minimum payments until the debt is discharged.
  3. Makes you lose your focus on other financial goals: There are some financial goals you should not put off, and focusing on your student debt may distract you from them. For example, if you don't currently have an emergency fund, put any excess money there first.

pros and cons of paying off student loans early

How long does it take to repay your student loan?

The time it takes to repay your student loan varies widely based on factors such as the loan amount, interest rates, repayment terms, and the borrower's financial situation. On average, it can take anywhere from 10 to 30 years to fully repay student loans. However, some individuals might manage to pay them off sooner through aggressive repayment strategies or higher incomes, while others might take longer if they have lower incomes or encounter financial hardships.

How to pay off student loans early?

Now that we have told you about the pros and cons, we hope you have made up your mind. If you have decided to repay your student loans early, here are a few ways how to repay your student loans early. Learn how can you manage students loan effectively.

1. Pay more than the bare minimum:

Paying more than the minimum on your student loans will help you reduce the principal balance of your loan and pay it off faster.

2. Start a side hustle:

Look for ways to make more money to go toward your student loans. Pick up babysitting jobs, drive for Uber or Lyft, sell old items online, or donate plasma, for example. Even the smallest of things can go a long way. AAdding to the side hustle, ensure you follow the 5 Ways You Can Be Financially Stable through our webstory.

3. Pay biweekly rather than monthly:

Making biweekly payments on your student loans will result in 26 half-payments in a year. This implies that instead of 12, you'll be making 13 full payments on your loans each year.

4. Make a lump-sum payment:

Consider putting any money you get, whether from tax returns or a financial gift, into your student debt repayment.

5. Refinance at a lower rate: 

If you can find a lower interest rate, refinancing can help you pay off your loan faster. You may be able to reduce the main balance on your loan more easily if you reduce interest charges.

Tips on how to pay off student loans fast

As we gave you a few ways to help you repay your student loans early, let us give you some tips as well.

1. Invest in a savings scheme

If you have some liquid assets on hand, it will be easier to plan your financial security. By leveraging these funds, you can either reduce your debt or put it in a savings account or other savings schemes. But how can you decide which of the two is the best? 

Choose a savings plan if the interest earned exceeds the interest paid on your student loan. This will allow you to pay off the loan gradually over time without burdening yourself. Meanwhile, if your investment is yielding less than the interest on your student loan, it is prudent to reduce your debt burden.

2. Develop a personal budget

Creating a personal debt budget is what keeps you from overspending when you have the need. Personal student budgets allow you to keep track of your costs while making regular payments in a methodical manner. With more, you have a better chance of navigating between your important and non-essential duties and streamlining your monthly/annual budget. Paying off student loans early will be possible without compromising your lifestyle or appetites.

If you face issues making a budget, our blog on how to budget for students will surely help you.

3. Consider Consolidating

Loan consolidation is the most well-known method of repaying debt at a fixed interest rate. If you happen to have numerous student loans, loan consolidation allows you to combine them together and pay back sums depending on the average interest rate on the loans being merged, which will help pay off student loans fast.

These are all the basic things you need to know about paying off your student loans early. Researching thoroughly and then deciding on how and when to pay your loans is also very important and an important part that is not to be skipped. If you want to know more, here are a few tips on hassle-free student loan repayments! Before applying to any loans make sure you checkout education loan eligibility criteria and documents required and plan better.

Frequently Asked Questions

Does paying off a student loan early hurt credit?

Should I pay off my student loan in one lump sum?

Why is it so hard to pay off student loans?

Do people regret student loans?

Why are student loans harmful?

Download the amber app
Scan The QR to download the App
app QR
You can directly download from
play storeapp store
100% Verified Listings
Quick and Easy Bookings
Price Match Guarantee
24x7 Personal Assistance