AlumniFi Credit Union



How To Pay Student Loans Off Faster

2 min read

If you borrowed money to attend college, you are not alone. Many American students have student loan debt, that’s why have some strategies for you to pay off your student loan debt faster.

Pay more toward the loan principal 

Although you don’t have to start paying back federal student loans until six months after graduation, the sooner you can begin making payments, the better. Making additional payments beyond the set amount will help you pay off the loan faster.

However, student loan servicers, which collect your payments, may apply the extra amount to next month’s payment, advancing your next due date, but not helping you pay off the loans faster. Be sure to request that your servicer apply extra payments to the principal loan balance.

Refinance your loans

Another way to pay off your student loans faster is by refinancing them into a single private loan, preferably at a lower interest rate. Although your monthly payment may increase, applying for a shorter loan term will allow you to pay the debt off faster and save you money in interest.

Sign up for auto pay

Enrolling your federal student loan in auto pay can save you money, too. Many student loan servicers offer a quarter-point interest rate discount if you set up automatic payments from your financial account.

Put extra earned money toward your loan principal

Finally, applying any extra funds you earn toward the principal loan balance will help reduce it more quickly. Consider applying funds from a raise at work, a tax refund, or extra income earned in addition to your full-time job.

To help members pay back student loans faster, AlumniFi provides members access to Changed which rounds up everyday purchases and puts the extra funds toward the member’s student loans. For instance, if you spend $2.45 on your next cup of coffee, $0.55 will be rounded up and put toward your student loans.

You might also like:

3777 West Road
East Lansing, MI 48823

Contact Us
(855) 955-2965

Routing Number

Federally Insured by NCUA

Copyright © 2024 AlumniFi, a trade name of Michigan State University Federal Credit Union. All Rights Reserved.

*APY=Annual Percentage Yield. Competitor’s savings account with a 0.21% annual percentage yield (APY) — $2,500 average based on the credit unions national average rate, as of 3/29/24, as reflected on NCUA: Credit Union and Bank Rates.

+“Survey: ATM fees hit record high while overdraft and NSF fees fell sharply.”

*Annual Percentage Yield (“APY”) means a percentage rate reflecting the total amount of dividends paid on an account, based on the dividend rate and the frequency of compounding for a 365-day period. This rate assumes that a set amount is on deposit at the beginning of the dividend period, no deposits or withdrawals are made during the dividend period, and funds remain on deposit for one full year at the same dividend rate. Fees may reduce earnings. Rates for accounts are variable and may change.

AlumniFi accounts are held at Michigan State University Federal Credit Union where savings are federally insured to at least $250,000 by the NCUA and backed by the full faith and credit of the United States Government. APR = Annual Percentage Rate. APY = Annual Percentage Yield. View our Privacy Policy and read our disclaimer regarding links to other sites via our Disclosures. If you are using a screen reader or other auxiliary aid and are having trouble using this website, please call 855-955-2965 for assistance. All products and services available on this website are available via our contact center.