Discover payment-saving options

Sometimes it can be hard to stay afloat—let alone get ahead—when student loans take a big bite out of your monthly budget. The good news is that there are ways to ease this financial stress.

Explore Payment-saving options

Explore Discover payment-saving options

Know your refinance options

Take steps to manage your student loan debt. Consider these refinance and repayment options.

Explore the options

Consider income-driven repayment (IDR) plans
Explore consolidation
Check out refinancing
Talk to your employer

Explore the options

Explore the options

Consider income-driven repayment (IDR) plans
Explore consolidation
Check out refinancing
Talk to your employer

Consider income-driven repayment (IDR) plans

If you have federal loans, IDR plans may help. They base your monthly payments on income and family size. The Biden administration’s loan relief package includes new guidance on income.

 Quick tip

Your loan servicer can help you apply for IDR plans.

Explore the options

Explore the options

Consider income-driven repayment (IDR) plans
Explore consolidation
Check out refinancing
Talk to your employer

Explore consolidation

Combining multiple federal loans into a single loan can simplify your finances.

 Quick tip

To check out how consolidating with the federal government will affect your monthly payment and loan term, head to StudentAid.gov and look for Loan Repayment.

Explore the options

Explore the options

Consider income-driven repayment (IDR) plans
Explore consolidation
Check out refinancing
Talk to your employer

Check out refinancing

Bundling your loans—private, federal or a mix of both—and refinancing through a private lender might save you money.

 Quick tip

Lenders, like Citizens, may also offer discounts if you’re already a customer or enroll in an automatic payment plan.

Explore the options

Explore the options

Consider income-driven repayment (IDR) plans
Explore consolidation
Check out refinancing
Talk to your employer

Talk to your employer

In this competitive job market, some employers are offering assistance with paying back loans. Check with your employer’s HR department.

 Quick tip

Thanks to pandemic relief legislation, employers can contribute up to $5,250 annually to an employee’s federal student loans. The good news: employees don’t pay taxes on the contribution1.

Explore the options

Consider Income-Driven Repayment (IDR) Plans

If you have federal loans, IDR plans may help. They base your monthly payments on income and family size. The Biden administration’s loan relief package includes new guidance on income.

 Quick tip

Your loan servicer can help you apply for IDR plans.

Explore Consolidation

Combining multiple federal loans into a single one can simplify your finances.

 Quick tip

To check out how consolidating with the federal government will affect your monthly payment and loan term, head to StudentAid.gov and look for Loan Repayment.

Check Out Refinancing

Bundling your loans—private, federal or a mix of both—and refinancing through a private lender might save you money.

 Quick tip

Lenders, like Citizens, may also offer discounts if you’re already a customer or enroll in an automatic payment plan.

Talk to Your Employer

In this competitive job market, some employers are offering assistance with paying back loans. Check with your employer’s HR department.

 Quick tip

Thanks to pandemic relief legislation, employers can contribute up to $5,250 annually to an employee’s federal student loans. The good news: employees don’t pay taxes on the contribution1.

Back to Top

How to lower your student loan payments

Reduce your monthly payments with a few changes.
Seek a lower interest rate

If you have good credit, you may be able to get a better rate and trim your monthly payment through refinancing.

Seek a lower interest rate
Look into a longer term

With a longer term, your monthly payment may go down. However, you’ll generally pay more interest overall.

Look into a longer term
Pay on time
Pay on time

A consistent payment history can sometimes yield a slight rate reduction.

Pay on time
Pay on time

Enroll in auto pay
Enroll in auto pay

This small change might drop your interest rate a bit. Just make sure you can cover the amount each month.

Enroll in auto pay
Enroll in auto pay

Back to Top

5 Ways to Ease Your Budget

  • Refinance with a lower interest rate or longer term through a private lender.
  • Consolidate federal loans with a longer term.
  • Switch to a graduated repayment plan for federal loans.
  • Ask for a deferment or forbearance for federal loans.
  • Find out if your state offers repayment assistance.

Test your refinance IQ

The more you understand about refinancing your student loans, the better prepared you’ll be when the time comes.

01

It’s smart to know when refinancing makes sense.

True
False
True
False

True: Refinancing makes sense if you can secure a lower rate, have good credit (or a cosigner with good credit) and have sufficient income. It also could work for you if you want to extend the term of your loan to lower your monthly payments.

True
False

True: Refinancing makes sense if you can secure a lower rate, have good credit (or a cosigner with good credit) and have sufficient income. It also could work for you if you want to extend the term of your loan to lower your monthly payments.

02

A private loan isn’t just for refinancing private student loans.

True
False
True
False

True: You can use a private loan to refinance both private and federal student loans. However, if you refinance a federal loan with a private loan, you could lose the benefits federal loans offer, such as income-based repayment and loan forgiveness †.

True
False

True: You can use a private loan to refinance both private and federal student loans. However, if you refinance a federal loan with a private loan, you could lose the benefits federal loans offer, such as income-based repayment and loan forgiveness †.

03

You cannot refinance a private student loan with a federal loan program.

True
False
True
False

True: The federal government doesn’t allow you to transfer private loans to a federal loan program. However, you can combine multiple federal loans into a single federal loan with a thorough federal consolidation.

True
False

True: The federal government doesn’t allow you to transfer private loans to a federal loan program. However, you can combine multiple federal loans into a single federal loan with a thorough federal consolidation.

04

You may be able to refinance without a cosigner.

True
False
True
False

True: If you have a cosigner on your loan(s) now, you may be able to remove them. However, if your cosigner has a stronger credit rating than you and you remove them, you could potentially get a higher interest rate on your new loan.

True
False

True: If you have a cosigner on your loan(s) now, you may be able to remove them. However, if your cosigner has a stronger credit rating than you and you remove them, you could potentially get a higher interest rate on your new loan.

05

Interest rates with student loans aren’t all the same.

True
False
True
False

True: Interest rates vary by lender and by your credit. That’s why it’s important to shop around and get a rate quote before you apply for a loan.

True
False

True: Interest rates vary by lender and by your credit. That’s why it’s important to shop around and get a rate quote before you apply for a loan.

Back to Top

Did you know?

The average monthly student loan payment is an estimated $4602. Refinancing with Citizens has saved customers an average of $352 † a month.

Share: 
Back to Top

Additional resources

Student Loan Refinancing: What Are the Benefits?

ReadOpens in a new window.

How to Catch a (Tax Deduction) Break on Your Student Loans

ReadOpens in a new window.

Saving for Something Fun? Don’t Let Student Loans Get in the Way

ReadOpens in a new window.

Ready to streamline your student loans?

See how refinancing your student loans can put more money in your pocket. On average, customers have saved $4,230† a year.