Student loan debt: How to reduce those monthly payments (2024)

Table of Contents
How buyers and sellers can save money with real estate ruling Tax season 2024: What's new this year and how to file for free Airlines crackdown on what passengers can carry on flights Mega Millions jackpot rises to $792 million after no winners Biden administration plans to cap credit card late fees at $8 Avoid these common mistakes that can delay your tax return 'Aisle' be darned: How to save money at the grocery store Consumers shop for cheaper brands and knockoffs amid inflation Wendy's considers surge pricing: Will other fast food chains follow? Are viral money-saving hacks all over social media worth the hype? What to know about retirement as Baby Boomers set to turn 65 Tips for managing fees associated with popular payment apps How to find the best last-minute spring break deals Median home price rises again: What house hunters need to know Social media and investing: Separating good advice from clickbait Biden administration cancels another $1.2 billion in student loans How to find deals and save money for spring break Who pays the bill when you go on a date? How to save money while celebrating Valentine’s Day Looking for the best budgeting apps? Here are some top options How buyers and sellers can save money with real estate ruling Tax season 2024: What's new this year and how to file for free Airlines crackdown on what passengers can carry on flights Mega Millions jackpot rises to $792 million after no winners Biden administration plans to cap credit card late fees at $8 Avoid these common mistakes that can delay your tax return 'Aisle' be darned: How to save money at the grocery store Consumers shop for cheaper brands and knockoffs amid inflation Wendy's considers surge pricing: Will other fast food chains follow? Are viral money-saving hacks all over social media worth the hype? What to know about retirement as Baby Boomers set to turn 65 Tips for managing fees associated with popular payment apps How to find the best last-minute spring break deals Median home price rises again: What house hunters need to know Social media and investing: Separating good advice from clickbait Biden administration cancels another $1.2 billion in student loans How to find deals and save money for spring break Who pays the bill when you go on a date? How to save money while celebrating Valentine’s Day Looking for the best budgeting apps? Here are some top options Future of fertility: Why women in their 20s are freezing their eggs Medicare says it can cover Wegovy — but only for certain patients Justice Stephen Breyer on abortion ruling and possible compromise Easter candy prices soar as the price of ingredients rise Did Shohei Ohtani help his interpreter, or was he betrayed? Apple denies allegations after Justice Department antitrust suit Video shows migrants push through part of southern border fence Midnight deadline looms as lawmakers rush to avoid shutdown Spring storms to bring up to 6 inches of snow to some regions Will Kate Middleton's cancer revelation end conspiracy theories? How to include puppies in your yoga poses Which game-day snack is highest in vitamin C? What to Shop This Week: New products for home, beauty, more Brandi Chastain, Briana Scurry announce pre-Olympic match Joan Lunden, daughter Jamie Hess talk 'Gratitudeology Podcast' How to keep your teens safe when traveling for spring break Life coach offers advice for starting over at any age André De Shields on his mythology podcast, HIV survivor support Shop the 16 must-haves in Shop TODAY’s spring favorites bracket Leslie Bibb on how ‘Palm Royale’ cast was like a ‘family’ Jenna reveals her method for 'hooking people up' on dates Watch TODAY fan from the plaza play a game of Trip or Bust! Try these tips for building a happier, more optimistic life Shop these essential items before your next spring trip Meet the woman found love through organ donor's brother The Great Debate: Are pants too big (again)? TODAY fan plays pop culture trivia to win trip to Punta Cana Try these spring-cleaning hacks with items you already have Try this recipe for a light and fluffy malva pudding with custard Shop these essential items before your next spring trip What to Shop This Week: New products for home, beauty, more Shop the 16 must-haves in Shop TODAY’s spring favorites bracket TODAY Bestsellers: Viral jumpsuit, serums, knives and more! Refresh your hair and beauty routine with these tips and products Shop these essential spring deals and save up to 84% off! Ally Love answers her most frequently asked questions Shop the hottest toys for spring this year Look well-rested with these easy tips and products Look well-rested with these easy tips and products Which game-day snack is highest in vitamin C? Try this recipe for a light and fluffy malva pudding with custard Ashley Lonsdale shares recipe for braised chicken and cabbage Try this crowd-pleasing fresh seafood paella from Tatiana Rosana Meet Allison Ellsworth, the founder of the soda company Poppi Chef José Andrés shares his recipe for seared scallops with tzatziki Try Chef José Andrés’ one-pot chicken youvetsi and tabbouleh Try these sausage rolls that are perfect for Saint Patrick's Day Try Catherine Fulvio’s recipes for cottage pie and apple cream cake How these female whiskey makers are bringing back a lost Irish art FAQs

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Student loan debt: How to reduce those monthly payments (1)

Student loan debt: How to reduce those monthly payments

Aug. 29, 201603:35

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Student loan debt: How to reduce those monthly payments (2024)

FAQs

Student loan debt: How to reduce those monthly payments? ›

Your monthly payment amount depends on what repayment plan you're on, so you may be able to lower it by switching plans. If you're already on an income-driven repayment (IDR) plan, you may be able to lower your payment by updating your income information.

Can I reduce my monthly student loan payments? ›

Your monthly payment amount depends on what repayment plan you're on, so you may be able to lower it by switching plans. If you're already on an income-driven repayment (IDR) plan, you may be able to lower your payment by updating your income information.

Can you negotiate your student loan monthly payment? ›

Absolutely. But before you begin negotiating, your loans will probably need to be either in default or near default. Some lenders may suggest an alternative repayment plan, but if your loans are far beyond hardship assistance, you can start trying to negotiate a student loan settlement.

Can I reduce my monthly loan payments? ›

First, you can contact your loan provider and ask whether you can bring down the payments. Lenders may be able to provide support, such as a payment holiday or a period of reduced payments or reduced interest, or a repayment plan.

What if I can't afford my monthly student loan payments? ›

Contact your loan servicer, explain the situation and try to arrange an affordable payment schedule. Cut expenses and increase income to generate enough money to make payments. Contact your loan servicers and sign up for an income-driven repayment plan. Consolidate your loans to lower monthly payments.

Can I pay $50 a month for student loans? ›

Under the Standard Repayment Plan, you'll make fixed monthly payments of at least $50 for a period of up to 10 years for all loan types except Direct Consolidation Loans and FFEL Consolidation Loans.

Can you ask for lower student loan payments? ›

You'll be required to provide documentation of income if you want to recalculate your monthly payment this way. A deferment or forbearance allows you to temporarily stop making your federal student loan payments or temporarily reduce your monthly payment amount.

What is a normal student loan monthly payment? ›

Data Summary. The average federal student loan payment is about $302 for bachelor's and $208 for associate degree-completers. The average monthly repayment for master's degree-holders is about $688.

Does paying extra principal lower monthly payments student loans? ›

Since interest on a student loan is calculated daily on the principal balance at that time, the less principal you have left to pay, the lower your interest costs. As a result, paying extra on your student loan — and having that money go directly to the principal — can save you a significant amount of money.

Why are my monthly student loan payments so high? ›

Under all of the income-driven repayment (IDR) plans, your required monthly payment amount may increase or decrease if your income or family size changes from one year to the next or if you switch repayment plan. Loan Simulator can help you determine if your current plan is still the best option for you.

How do I lower my monthly payment? ›

How To Lower Your Mortgage Payment
  1. Refinance With A Lower Interest Rate. A lower interest rate can mean big savings. ...
  2. Get Rid Of Mortgage Insurance. ...
  3. Extend The Term Of Your Mortgage. ...
  4. Shop Around For Lower Homeowners Insurance Rates. ...
  5. Appeal Your Property Taxes.

How can monthly debt payments be reduced? ›

By extending your repayment period, you could lower your monthly instalments so that you can meet your financial obligations. Restructures are available on home loans and vehicle finance.

How can I lower my monthly payments without refinancing? ›

How to lower your mortgage payment without refinancing
  1. Recast your mortgage. ...
  2. Cancel your mortgage insurance. ...
  3. Lower your homeowners insurance or property taxes. ...
  4. Consider a bi-weekly mortgage payment plan. ...
  5. Ask your lender for a loan modification. ...
  6. Pay off your loan.
Oct 6, 2023

Is there a way to lower monthly student loan payments? ›

You can refinance your student loans to consolidate your debt and get a lower interest rate to decrease your monthly payment. Let's say you owe $50,000 with an 11% interest rate and a 10-year term. If you refinance to a 5% interest rate and a 10-year term, you will pay $158 less each month.

Why are student loans so hard to pay off? ›

Interest can make student loans more expensive, while inflation can make that debt harder to manage alongside other bills. Paying off some of your debt during your studies could ease the burden later on and save you money on interest.

What if I can never pay off my student loans? ›

Lenders could also sell the debt to a collection agency that decides to sue you in court. You'll also have a harder time getting approved for future credit products with favorable terms. In some instances, you could face wage garnishment or have tax refunds withheld by the federal government.

Can you lower your monthly payment? ›

To get a lower mortgage payment, you'll need to focus on modifying the principal, interest, taxes or insurance you pay. You can choose to refinance or recast your mortgage to make the monthly mortgage payments more affordable.

Do large principal payments reduce monthly payments student loans? ›

Yes. You can make payments before they are due or pay more than the amount due each month. Paying more than your required monthly payment can reduce the amount of interest you pay, and total loan cost over the life of the loan.

How can I lower my student loan payments without refinancing? ›

  1. Apply for an income-driven repayment plan. ...
  2. Sign up for a graduated repayment plan. ...
  3. Consider an extended repayment plan. ...
  4. Consolidate your loans. ...
  5. Move to another state. ...
  6. Enroll in automatic payments. ...
  7. Get help from your employer. ...
  8. Refinance your student loans.

Can you choose your monthly payment for student loans? ›

You can pick from repayment plans that base your monthly payment on your income or that give you a fixed monthly payment over a set repayment period. You can pick from repayment plans that base your monthly payment on your income or plans that give you a fixed monthly payment.

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