3 ways to reduce student loan debt before Biden's payment freeze ends

1. Make payments, even though you don't have to

While it might be tempting to remain "on break" from your student loans until September, continuing to make your regular payments — and even paying more than your usual minimum — is a smart idea, if you can afford it.

Since the interest rates on federal student loans are frozen at 0%, any payments you make now will go entirely toward the principal of your loan.

That means you might be able to take a decent chunk out of your loan balance. When student loan debt was frozen in 2020, the typical balance was between $20,000 and $24,999, according to Federal Reserve data.

Resuming your payments early is probably out of the question if you're dealing with other debts, like if you ran up your credit cards during a period of unemployment last year.

Biden's administration hasn't made any announcements about forgiving loans, but officials have said they're hoping to find other ways to ease the burden on student loan borrowers.

In the meantime, if you have credit card debt, you may want to use this time to tame it with the help of a lower-interest debt consolidation loan.

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Millions of Americans are struggling to crawl out of debt in the face of record-high interest rates. A personal loan offers lower interest rates and fixed payments, making it a smart choice to consolidate high-interest credit card debt. It helps save money, simplifies payments, and accelerates debt payoff. Credible is a free online service that shows you the best lending options to pay off your credit card debt fast — and save a ton in interest.

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2. Seek a new repayment plan

You could clear out your student loan debt faster by switching up your current payment plan, particularly if your income got cut by the pandemic and still hasn't come back.

The government offers income-driven repayment plans that allow borrowers to make more affordable payments, based on what they earn. After you make 20 or 25 years of regular payments under an income-driven plan, your remaining debt will be forgiven.

That might be your best shot at having some of your student loans canceled. President Biden campaigned on wiping out $10,000 in student debt per borrower, and while leading Democrats pressed him to go to $50,000, he ruled out that possibility back in April.

One simple money-saving step with a federal student loan is to enroll in autopay because signing up for automatic deposits will qualify you for a 0.25% interest rate reduction when payments resume.

3. Refinance private loans

If your student loans are from a private lender and not the federal government, the payments pause doesn't apply to you.

But you can attack your student debt over the next few weeks by refinancing your loan because interest rates on refi student loans from private lenders are still at historically low levels.

Whether you qualify for refinancing will largely depend on your credit score and your current income. If you’re not sure about your score, it's easy today to check it for free online.

Even if you’ve lost your job due to the pandemic, you may be eligible for a refi if you can show investment income or income from a side gig, or find a co-signer to back your application.

To get the best rate to refinance a student loan, you'll need to shop around and compare quotes from multiple lenders. Experts recommend comparing at least three offers before settling on the right one for you.

Just remember that refinancing is not an option if you’ve got a federal student loan, and replacing a federal loan with a private one will make you ineligible for any further loan relief measures from the government.