Optimal Finance Daily - Financial Independence and Money Advice 3272: [Part 2] How to Pay Off Student Loans Fast On Your Path to FIRE by Scott Rieckens of Playing With Fire
Sep 5, 2025
Dive into practical strategies for tackling student loan debt, including auto-pay setups and making extra payments. Explore the benefits of refinancing to lower interest rates and fast-track your financial independence. Discover income-driven repayment options and the potential for loan forgiveness, tailored to your financial goals. With actionable insights, you'll learn how to break free from debt and move closer to financial freedom.
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Use Auto-Pay And Direct Principal Payments
- Enroll in auto-pay to get a small interest rate reduction from most lenders.
- Ask your servicer in writing to apply extra payments to principal to cut future interest costs.
Make Consistent Extra Payments
- Make regular extra payments like rounding up, using raises, or applying windfalls to speed payoff.
- Request written confirmation that extras will reduce principal so interest falls immediately.
Refinance To Lower Interest And Term
- Refinance federal or private loans with a stable income to secure lower interest and combine balances.
- Keep the same payment amount after refinancing to pay off loans faster and save interest.