5 Strategies For Paying Off Your Student Loans

Published on Author Bethany Sims

Everyone will have a different approach to paying off student debt based on their goals and personal situation. To give you a starting point, we have outlined 5 strategies our borrowers use when refinancing their student loans. Each strategy focuses on a different benefit of refinancing and some unique options. Remember, when you refinance multiple loans we automatically consolidate them into one easy monthly payment.


Focus: Lower rate, same monthly payment
One of our most popular options focuses on the main goal of refinancing: getting a lower interest rate. This strategy lowers your interest rate but keeps your monthly payment the same, which is the easiest way to save since you are paying off more without affecting your cash flow. By qualifying for a lower rate through refinancing, many are able to pay off the debt faster since more money is going towards the principal.
Focus: Maximize your savings, shorten your term
If you are able to put more money towards your monthly payment, it can save you thousands in interest costs over the lifetime of the loan. Shortening your term and lowering your interest rate may increase your monthly payment, but you’ll get out of debt faster. If you have a standard 10-year term, refinancing to our 8-year term is a great option. Lowering your interest rate and shortening your term by just 2 years will keep your monthly payment manageable and put you on track to get out of debt faster.
Focus: Lowering your payment
If cash flow is tight, lowering your monthly payment by lengthening your term is the way to go. It’s important to remember that if you choose this strategy, you won’t save as much on interest costs. However, since we never have prepayment penalties, you can pay more towards your loan when you are able without worrying about fees. Switching from a 10 year to a 12 year term can lower your monthly payment enough to bring in extra cash, but not so drastically that you’ll be paying off your student loans until retirement.
Focus: Getting the same rate and term as your spouse
If you and your spouse would like to refinance your loans together, we can determine the interest rate using the higher credit score of the two. If you are ever in a situation where you need to separate the loans again, we can do that too. This situation is beneficial since you could potentially qualify for a lower interest rate thanks to your spouse’s high credit (or vice versa).

We have another post weighing the pros and cons of refinancing debt together if you would like more information.
Focus: Transferring Your Loan
If you have a cosigner on your existing loans and qualify for a loan without them, simply apply on your own to release your cosigner. This option can save you money and make you solely responsible for the loan without all the complex releases many lenders have. For those with a cosigner on a Purefy loan, our policy is to release your cosigner from the loan if you qualify for the loan on your own and request this option. If you have a parent PLUS loan, we can transfer it to your child if they are ready to take responsibility for the loan. Contact us to learn more and see if you can drop your cosigner!

See what you can save with our Find My Rate tool!

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