7 Creative Ways to Pay Off Student Loans (With the Math)

Looking for creative ways to pay off student loans? The good ones have something in common: they find money you’re not using yet and point it at your balance before you get used to spending it.

You already know the basics, like paying extra and going after the highest rate first. Those are in our main guide to paying off student loans faster. This page is the other stuff. Some of it is money your employer will hand you if you ask, and some of it is money hiding in your next raise.

Here are seven ideas that actually add up, with the math, plus a few “creative” moves that cost you more than they save.

1. Get a retirement match for paying your loans

This one’s new, and most people with loans have never heard of it. Under section 110 of the SECURE 2.0 Act, an employer can match your qualified student loan payments with a contribution to your 401(k), 403(b), SIMPLE IRA or governmental 457(b) plan, the same way it matches money you save. It’s been allowed for plan years beginning after December 31, 2023.

It’s an optional feature, though, so your employer has to add it to the plan. And you have to certify your loan payments to your employer at least once a year.

Next time you talk to HR, ask two things: does the plan match student loan payments, and does the company offer student loan repayment help on top of that? Our main guide covers the second one, including the up-to-$5,250 tax-free benefit.

2. Send your next raise to the loans

This is the easiest money you’ll ever redirect, because you’ve never had it. When your paycheck goes up, raise your loan payment by part of the difference before it shows up in your spending.

So a $150 bump takes three full years off the loan. Not bad for money you weren’t counting on.

Next stepTry your own raise in our student loan payoff calculator.

3. Round your payment up to a number you like

Paying $397.77 a month? Set autopay to $450.

The extra $52.23 is small enough that you won’t feel it, and on that same $35,000 loan it pays the balance off in 102 months instead of 120 and saves about $2,123 in interest. Same math as above, just starting on day one.

4. Make biweekly payments, the right way

You’ll see this one everywhere. Splitting your monthly payment in half and paying every two weeks works for one reason: there are 26 two-week periods in a year, so you end up making 13 full payments instead of 12.

But paying half on the 1st and half on the 15th of the same month doesn’t do that. It’s still 12 payments a year, and the savings from paying two weeks early are a few bucks.

1. Ask your servicer how it handles a half payment. When it holds the money until the other half arrives, you get nothing for the trouble.
2. Does it apply half payments right away? Then schedule them every other Friday (or whatever lines up with your paycheck), not twice a month.
3. Too much hassle? Add one-twelfth of a payment to every monthly bill instead. Same 13th payment, no confusion.

5. Sell stuff, rent a room, or pick up a gig

The most creative move is often the most boring one. Earn a bit more and send every dollar of it to the loan, and because it’s new money, it doesn’t come out of your budget.

• A spare room or a parking spot you don’t use
• A car you barely drive, or the gear and clothes you’ll never use again
• Delivery or task gigs on your own schedule. Gigs Done Right covers the apps in detail
• Bank and app sign-up bonuses with no monthly charge. ReferralWallet keeps a running list of apps that pay you to sign up

For steadier money, our list of side hustles for paying off student loans ranks the ones that fit around a full-time job. Whatever you pick, move the cash to your highest-rate loan the day it lands.

6. Let your job pay part of it

If you work in public service, or could, this beats any payoff trick on the page.

Public Service Loan Forgiveness wipes out the rest of your Direct Loan balance after 120 qualifying monthly payments while you work full time for a government agency or a qualifying nonprofit, and the forgiven amount isn’t federally taxable. Teacher Loan Forgiveness pays up to $17,500 (or up to $5,000, depending on the subject) after five complete, consecutive years teaching at a low-income school.

One twist: if you’re headed for PSLF, paying extra just shrinks what gets forgiven. You’d want the lowest qualifying payment instead. Our list of student loan forgiveness programs lays out who qualifies for what, and the PSLF guide covers PSLF step by step.

7. Creative ideas that backfire

Some ideas sound clever and cost you more than they save. These are the ones to skip.

A 0% balance transfer card to pay off a student loan swaps a fixed-rate loan with federal protections for a credit card that jumps to a high rate when the promo ends. Then there’s your 401(k). A loan from it pulls money out of the market, and a withdrawal can come with taxes and penalties. A home equity loan turns unsecured debt into debt backed by your house.

Bottom line: pick one or two of these and set them up this week. A match you claim and a raise you redirect will do more than a dozen tricks you never get around to.