After a years-long payment pause because of the pandemic, federal student loan payments resumed on October 1, 2023 (and interest accrual resumed a month earlier). The result is that millions of federal student loan borrowers are making payments again.
However, some borrowers may opt to make more than the student loan minimum payment so that they can expedite the repayment process on their loan. Here’s what borrowers need to know about paying more than the minimum on student loans.
Table of Contents
Key Points
• The minimum student loan payment depends on the repayment plan and loan type, with federal plans currently ranging from fixed payments to income-driven repayment plans, but with repayment plan options changing in July 2026.
• Borrowers can make extra payments without penalty to reduce interest costs and pay off loans faster by applying additional payments to the loan principal.
• Paying off student loans early lowers the debt-to-income ratio, strengthens credit, and frees up funds for savings or future financial goals.
• Strategies to accelerate loan repayment include budgeting, making consistent extra payments, using windfalls like bonuses, and seeking additional income sources.
• Refinancing student loans can lower interest rates or simplify payments, but borrowers should consider losing access to federal benefits before refinancing federal loans.
What Is the Minimum Payment on Student Loans?
The minimum payment on student loans is the lowest amount of money a borrower can pay each month. The actual student loan minimum payment amount owed each month might be determined by factors including the loan type, interest rate, and the student loan repayment plan. Generally, the minimum monthly payment includes the principal (the original amount borrowed), interest, and fees.
For federal student loans, the minimum monthly payment depends on the repayment plan a borrower is on. However, the U.S. domestic policy bill that was passed in July 2025 eliminates a number of federal repayment plans. For borrowers taking out their first loans on or after July 1, 2026, there will be only two repayment options. But because current borrowers may remain in the plans, they are included here.
Standard Repayment Plan: This plan will continue to be available in a modified form moving forward. Most borrowers were eligible for the original plan, which had a 10-year repayment period. For loans taken out on or after July 1, 2026, the repayment term will range from 10 to 25 years based on the loan amount.
Pay As You Earn (PAYE) Plan: This plan will be closed to new loans made on or after July 1, 2026. Under PAYE, borrowers’ payments were 10% of their discretionary income and were also based on their family size. With PAYE, their payment could be as low as $0 per month, and they wouldn’t owe more monthly than they would have on the Standard Repayment Plan.
Income-Based Repayment Plan: IBR is available to any borrower currently in an income-driven plan that is scheduled to close. Borrowers on this plan generally have federal student loan debt that’s higher than — or comprises a substantial portion of — their annual discretionary income. On IBR, their monthly payments are 10% to 15% of their discretionary income, and could be as low as $0. Borrowers won’t owe more monthly than they would have paid on the Standard Plan.
Income-Contingent Repayment Plan: This plan will be closed to new loans made on or after July 1, 2026. Borrowers with Direct loans who were eligible for this plan had monthly payments that were the lesser of 20% of their discretionary income or the amount they would have paid on a fixed repayment plan over 12 years, adjusted for their income. Their payments may have been as low as $0 a month.
Saving on a Valuable Education (SAVE) Plan: The SAVE plan is scheduled to be eliminated by June 30, 2028. Those who are already on the plan had their loans in interest-free forbearance since summer 2024. However, interest began to accrue on these loans again on August 1, 2025. Payments remain paused, but borrowers can move to another plan; those who don’t change to another plan on their own will likely be moved to the IBR plan.
Graduated Repayment Plan: This plan will be closed to new loans made on or after July 1, 2026. With this plan, a borrower’s monthly payments were lower at first and then increased, usually every two years. The monthly amounts they paid were enough to repay their loans within 10 years.
Extended Repayment Plan: This plan will be closed to new loans made on or after July 1, 2026. For those on the Extended plan, their payments may have been fixed or graduated, and the amount they paid each month was enough to ensure their loans would be paid off in 25 years.
As noted above, for borrowers taking out their first loans on or after July 1, 2026, there will be only two repayment options:
• Standard Plan: This refashioned plan will have fixed payments with a term based on the loan amount and ranging from 10 to 25 years. Generally, the more you owe, the longer you will have to repay it.
• Repayment Assistance Program (RAP): This new program is similar to previous income-driven plans that tied payments to income level and family size. On RAP, payments range from 1% to 10% of adjusted gross income for up to 30 years. At that point, any remaining debt will be forgiven. If your monthly payment doesn’t cover the interest owed, the interest will be cancelled.
You can learn more about the federal repayment plans here.
Can I Pay More Than The Minimum on Student Loans?
It’s possible to make more than the minimum payment on student loans without being charged for any prepayment penalty fees. Both federal student loans and private student loans are required to allow borrowers to make extra payments and pay off their loan early without charging any additional fees.
Making extra payments can help decrease the interest paid and help reduce the overall cost of the loan. Typically, you can contact your lender to specify that the extra payment be applied to your highest interest loan and be applied to the principal value of the loan.
Making payments directly to the principal value of the loan can help speed up repayment. And, because most student loan interest is charged per day, making additional payments on the principal value of the loan can help reduce the amount you pay in interest over the life of the loan.
💡 Quick Tip: Often, the main goal of refinancing is to lower the interest rate on your student loans — federal and/or private — by taking out one loan with a new rate to replace your existing loans. Refinancing can make sense if you qualify for a lower rate and you don’t plan to use federal repayment programs or protections, since refinancing federal loans makes them ineligible for federal benefits.
Why Would You Pay off Your Student Debt Sooner?
As with any debt, a primary motive for paying off student debt early is to more quickly eliminate debt that’s racking up interest. Prioritizing debt repayment could help lower your debt to income ratio and could help you reduce the amount of money you owe in interest over the life of the loan. Here are a few reasons you may want to pay off your student loans sooner rather than later.
Interest. Interest. Interest.
Interest continues to accrue for the life of most student loans. (Note: The timetable of when interest starts to accrue on your student loans depends on the type of student loans you’ve been awarded. Contact your lender for all the details.) The sooner you pay off your loans, the sooner you stop interest from accruing.
Student loan interest does qualify for a tax deduction. But only $2,500 of the interest can be deducted each year — less if your modified adjusted gross income in 2025 is greater than $85,000 annually for those who are single and more than $170,000 for those who are married and filing jointly.
Your Debt-to-Income Ratio May Be Lowered
When borrowing a mortgage or a car loan, the lender will usually consider the applicant’s debt-to-income ratio. And the lower it is, the better it looks from a financial perspective. Do you need a new car? Want to buy a house? Start a family? The sooner you get your student loan debt paid off, the more money you will likely have to put toward those dreams being realized.
Your Credit Score Could Strengthen
Your FICO® credit score is a powerful component of your total financial picture. There’s something to be said for the fact that if you’re managing an open debt responsibly by making on-time payments, that may have a positive impact on your credit score. And a higher FICO® score can generally help an individual get a better interest rate on a loan they might need for a home or car.
It’s Easier to Save Money When You’re Not Paying Down Debt
The conventional wisdom is the less debt you have, the more money you likely have to save. Think of successfully managing and paying off debt as a necessary exercise routine, like working your core. As your financial “core” gets stronger, you’re likely to become better able to balance your finances and save more money.
When you’ve repaid your student loans, the money you were spending each month on loan payments can instead be used to help you reach financial goals like starting an emergency fund, saving for a down payment on a house, or more.
How to Accelerate Your Student Loan Payments
You may be able to pay off your student loan debt more quickly by setting reasonable goals, including payments larger than the student loan repayment minimum required. As mentioned, both federal and private student loans generally allow for penalty-free prepayment but be sure to contact your loan provider before doing so to ensure your prepayments are being applied in the way that you want them to be.
Here is a checklist that may help you eliminate your student loan debt sooner.
Calculating Your Costs
Make a list or spreadsheet of all your student loans. You can use a student loan calculator to help determine how much you ultimately owe (including interest) and when, ideally, you’d like to complete your student loan payments.
Making a Budget
Track your spending and make a realistic budget of your monthly and annual expenses. And leave some wiggle room for unexpected expenditures. Be honest with yourself. If you feel you’re spending too much on unnecessary expenses, maybe it’s time to skip your next urge to splurge.
Setting Manageable Goals
Now that you know how much money you have coming in and where it’s going, it might be time to make some uncomfortable, but fair, spending decisions with the intention of eliminating your student loans by your goal date. That means you may want to sacrifice some unnecessary expenses. Cutting back on non-necessities isn’t fun, but it may make it easier for you to save.
Paying Beyond the Minimum Required
As we mentioned, you can accelerate your loan payoff by paying more than the minimum student loan payment required by your loan provider. It’s okay to start small — even an extra $25 a month can start to add up. Paying more each month can also save you money on interest. You can ask your loan provider to put that extra cash toward the principal.
Avoiding Late Fees
An easy way to help ensure you pay at the same time every month is to set up an auto-draft from your checking or savings account. Some lenders may even offer a rate discount to student loan borrowers who enroll in automatic payments.
Maximizing “Surprise” Money
Are you doing so well at work that you got a raise or bonus? Rather than splurging on something new, lighten the burden of your current reality by putting that money toward your student loan debt.
Finding Extra Work
Every little bit of extra income can help. A part-time job could get you closer to your goal more quickly. If fitting in an extra 15 or 20 scheduled hours a week isn’t feasible, try finding a side hustle where you can make your own hours. You can work as a dog walker, become a rideshare driver, or even recharge electric scooters.
Recommended: What is the Average Student Loan Debt After College?
Refinancing Your Student Loans
Refinancing your student loans might offer yet another step closer to your goal. Student loan refinancing is when you borrow a new loan (which is used to pay off your original loans) at a new interest rate and/or a new loan term.
One potential benefit of refinancing is the possibility of securing a lower interest rate. You could also potentially shorten your loan repayment term. But opting to shorten your loan term generally means paying more each month.
If you have a combination of private and federal loans, it’s possible to roll them into a single refinanced loan, which means having one monthly payment instead of multiple payments to multiple lenders.
However, it’s very important to understand that by refinancing your federal loans, you lose federal student loan protections such as deferment and forbearance, and access to income-driven repayment programs. Take this into very careful consideration before moving forward with student loan refinancing with a private lender.
The Takeaway
Making more than the minimum student loan payments each month can help borrowers speed up their loan repayment and spend less in interest over the life of their loan. Lenders generally do not charge any fees for prepayment. To make the most of your extra payments, contact your lender to be sure they are being made to the principal value of the loan.
Refinancing could be another option for some borrowers to consider if they are interested in securing a lower interest rate on their loan — and provided that they don’t need access to federal programs or protections.
Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.
FAQ
What happens if I only pay the minimum on my student loans?
Making the minimum monthly payments on your student loan will generally result in your loan being paid off according to the original terms of the loan.
Is it worth paying off student loans early?
Paying off student loans ahead of schedule can make borrowing less expensive, because the borrower will likely spend less in interest over the life of the loan. Repaying student loans early could also have benefits like improving an individual’s debt-to-income ratio. Without the burden of student loans, borrowers might also be able to focus on other financial goals.
What is the average minimum student loan payment?
A borrower’s average monthly minimum federal student loan payment depends on factors including the total amount they owe, their interest rate, and the type of payment plan they’re enrolled in. For instance, for those currently on the Standard Repayment Plan, your payments are a fixed minimum amount of at least $50 a month.
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