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Even if you are managing tomake the paymentsevery month, it can feel overwhelming.
You need a good strategy to pay them off.
A recentpress releasefrom the Illinois CPA Society has some useful advice for getting your loans paid off.
Here are seven great tips tohelp you get a handle on your student loan debt in the coming year.
These plans cap your monthly payment based on your income and family size.
This can meanmuch lower paymentsthan youd normally have.
To apply for an IDR plan, visit the Federal Student Aid website and complete the utility process.
Youll also need to recertify your income and family size each year to stay eligible.
The program is meant to reward those who dedicate their careers to public service.
Be sure to double-check the pop in of loans you have only certain federal loans are eligible.
This is a way to combine different loans into one.
You end up with just one payment a month.
This can result in much lower payments by giving the borrower access to different income driven repayment plans.
Consolidating also makes income-contingent repayment plans for Parent PLUS loans an option.
Automatic Payments
Setting up autopay can help you stay on track with paying off your debt.
Sometimes you’re free to even get a small discount on your interest rate as an incentive.
it’s possible for you to save a little money on interest and confirm you never miss a payment.
Refinance Your Student Loans
Refinancing can be a smart option.
When you refinance, a private lender pays off your existing loans and issues you a new loan.
Take note of your student loans and their interest rates, the press release said.
But be careful about refinancing federal loans into a private loan.
You lose access to federal benefits, like income-driven repayment plans and forgiveness programs.
But its a good idea anyway.
This is a new benefit that can be offered by employers, said Hughes.
It allows the employee to get a 401(k) match for the amount ofstudent loan paymentsmade.
If your employer offers this perk, take full advantage of it.
Its essentially free money.
And as you pay off your debt, youre also putting away money for retirement.
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