How to help manage student debt efficiently

If you’re between 18 and 39, there’s a good chance student debt is part of your story — just like it is for 1 in 4 adults across the US. Altogether, Americans are juggling a staggering $1.6 trillion in student loans.¹ If you’ve recently graduated, your share might be close to $30,000.² It’s a huge number, but you’re definitely not alone.

A college education should feel like a smart investment in your future, but that isn’t always the reality. Student debt can take a toll not only on your wallet, but also on your mindset and goals. The good news? You have the power to act and change your situation. Let’s dig into how to help pay off your loans faster.

Check out loan forgiveness programs

For those who qualify, it may be possible to have your federal student loans forgiven, canceled, or discharged, meaning you won’t have to pay back some or all your loan. Public Service Loan Forgiveness is the most common way people apply to have their student loans forgiven. In general, these programs are available to those who work for the government or qualifying non-profit organizations.³

The other common type of federal student loan forgiveness program is the income-driven repayment (IDR) plan.⁴ IDR plans, such as Pay As You Earn (PAYE), Saving on a Valuable Education (SAVE), and Income-Contingent Repayment (ICR), allow you to cap your loan payments at a percentage of your monthly discretionary income, with the remaining loan balance eligible for forgiveness after 20-25 years depending on the plan and type of loan.⁵

But federal legislation that went into effect in July of 2025 has remade the loan forgiveness landscape. The PAYE, SAVE, and ICR plans will be phased out by July 1, 2028. Current borrowers enrolled in one of these programs will have until then to switch to one of the new options: the Standard Repayment Plan or the Repayment Assistance Plan (RAP).⁶ Payments in the RAP plan will be based on income and family size, with monthly payments ranging between 1%-10% of adjusted gross income instead of discretionary income.⁷ The remaining balance on these loans won’t be eligible for forgiveness for 30 years.⁸ Additionally, there are also federal student loan forgiveness programs for qualifying teachers and nurses.⁹

Out of sight, out of mind

See if your employer can channel part of your paycheck into a “loan payback” account. The money is out of reach until you’re ready to pay off a chunk of your debt. Or, set up an automatic transfer of funds each month to start paying back the loans as soon as you can.

Use surplus cash to make payments

If you get a raise or a tax refund, think about using it as an opportunity to pay down your debt faster. You could also use the surplus to pre-pay the principal on your loan, which helps lower the lifetime interest costs. 

Consolidate your loan

Loan consolidation can be helpful not only by simplifying multiple payments into one but also saving you money. Consolidating federal loans doesn’t reduce your interest rate, but consolidating private loans may allow you to do so. If you have private loans, it’s worth checking periodically to see if you can get a lower interest rate by refinancing.

Protect your repayments

Many people protect their income with disability insurance, which helps replace income lost if you’re too sick or injured to work. But if you’ve taken out loans to finance your education, you don’t just need to protect your income. You also need to protect your ability to repay your debt. Look for an insurance carrier that offers the option to add student loan protection coverage in the event of a disability.

Take care of your finances, take care of your well-being

Finances are more than just numbers — they impact how you live, how you feel, and what you can do. Having low financial wellness can increase stress, which may lead to worse physical and mental health outcomes and have a major impact on your overall well-being.¹⁰ Though you may not be able to wave a magic wand and have all your debt — and worries — vanish, creating a plan to pay down debt and manage your financial goals can help. Our research found that 61% of those who say they’re good at setting up long-term financial planning report having high financial wellness compared to 13% who report low financial health.¹¹

Student debt may be overwhelming, but it’s also not meant to be paid off overnight. Learning how to take control of your student debt can help you create a happier and more satisfying future.