There are four helpful steps to paying off student loans:

1. Calculate exactly how much is due on all student loans noting whether the loan is subsidized or unsubsidized.
2. Evaluate repayment options.
3. Pay on time and make payments automatic.
4. Deduct student loan interest if possible.

The best way to get rid of student loans is to increase payments to pay loans back as quickly as possible. Prepay student loans before payments are necessary if possible. There are no pre-payment penalties to pay off federal loans and many private loans early. Try to pay accrued interest payments while in school.

Handle loans responsibly so that they don't affect the ability to get a job, buy a car, or purchase a home. Paying student loans on time allows the ability to qualify for loans at a lower rate. Discharging student loans in the case of financial hardship (even bankruptcy) has become more difficult since Congress has tightened the rules. Avoid becoming delinquent (failing to pay on time) or defaulting (failing to repay under the agreed upon terms) on the loan. Defaulting on a federal loan allows the government to apply a tax refund to an outstanding student loan debt. In other cases, a percentage of the borrower's wages can be taken to pay the loan.

Consider consolidating student loans to simplify repayment. A consolidation loan can also reduce monthly payments; however, the interest rate may be slightly higher since it is based on the average rate of all the loans being consolidated. Refinancing student loans incurs no fees. With refinancing, the terms can be modified to extend the repayment period or linking the amount of payments to income.

Keep the lender Informed of any new addresses and phone numbers when moving. Receiving bills, important notices, or updates on the status of outstanding loans must not be interrupted.