The average student loan borrower in the United States carries $37,850 in federal student loan debt in 2026, and total outstanding student debt nationwide sits above $1.77 trillion. If you are one of the 43 million Americans with student loans, you already know the weight of that monthly payment — an average of $350 to $500 that cuts into rent, groceries, and everything else. But student loan repayment does not have to mean a decade of barely scraping by. Choosing the right repayment plan, knowing which forgiveness programs you qualify for, and finding ways to throw extra dollars at your balance can shave years and thousands of dollars off your total cost.
One strategy gaining traction among borrowers in 2026 is using supplemental income specifically for extra loan payments. Platforms like I am Beezy let you earn $5 to $15 per day from your phone by viewing content — videos, articles, and ads — with zero fixed schedule. Directing that extra $150 to $300 per month straight to your student loan principal can cut years off your repayment timeline and save thousands in interest. Let us walk through every option available to you right now.
Federal Student Loan Repayment Plans Explained
Standard Repayment: the default 10-year plan
If you do nothing after your grace period ends, your loans automatically enter the Standard Repayment Plan. You make fixed monthly payments over 10 years. For $37,850 in loans at 5.50 percent interest, that is roughly $411 per month and $11,450 in total interest. This plan costs the least in total interest but has the highest monthly payment. It works best for borrowers with stable income who can handle the payment comfortably.
Graduated Repayment: payments that start low and increase
The Graduated Repayment Plan starts with lower payments that increase every two years over a 10-year period. This makes sense if your income is low now but you expect it to rise — early-career teachers, nurses, or engineers, for example. The downside: you pay more total interest than the standard plan because your principal balance stays higher for longer in the early years.
Extended Repayment: stretching to 25 years
If you owe more than $30,000 in federal loans, you can extend repayment to 25 years with either fixed or graduated payments. Monthly payments drop significantly — from $411 to roughly $232 on a $37,850 balance — but you will pay over $31,600 in interest over the life of the loan. This plan is a last resort for borrowers who need immediate cash-flow relief but should not be a permanent strategy.
Income-Driven Repayment Plans in 2026
The SAVE Plan (formerly REPAYE)
The Saving on a Valuable Education (SAVE) Plan is the newest and most generous income-driven repayment option in 2026. Payments are capped at 5 percent of discretionary income for undergraduate loans and 10 percent for graduate loans. Discretionary income is calculated as anything you earn above 225 percent of the federal poverty level — meaning a single borrower earning under $33,075 pays $0 per month. After 20 years of payments (10 years for balances under $12,000), any remaining balance is forgiven. The government also covers 100 percent of unpaid interest, so your balance never grows even if your payment does not cover the monthly interest.
IBR, PAYE, and ICR: older plans still available
Income-Based Repayment (IBR) caps payments at 10 to 15 percent of discretionary income with forgiveness after 20 to 25 years. Pay As You Earn (PAYE) caps at 10 percent with 20-year forgiveness. Income-Contingent Repayment (ICR) caps at 20 percent or a 12-year fixed equivalent, with 25-year forgiveness. For most borrowers, the SAVE Plan is now the best income-driven option, but if you enrolled in IBR or PAYE before the SAVE Plan launched, check whether switching benefits you — your servicer can run the numbers.
Accelerate payoff with supplemental income
Here is where math gets powerful. On the Standard Plan, your $37,850 balance at 5.50 percent costs $411 per month for 10 years and $11,450 in interest. But if you add $200 per month from I am Beezy earnings directly to your principal, you pay off the loan in 6.5 years and save $4,200 in interest. That $200 per month — about 30 minutes of content viewing per day on your phone — translates to real years of your life freed from debt.
| Strategy | Monthly Payment | Payoff Time | Total Interest Paid |
|---|---|---|---|
| Standard Plan only | $411 | 10 years | $11,450 |
| Standard + $100/mo extra (Beezy casual) | $511 | 7.8 years | $8,700 |
| Standard + $200/mo extra (Beezy active) | $611 | 6.5 years | $7,250 |
| Standard + $300/mo extra (Beezy + referrals) | $711 | 5.5 years | $6,100 |
| SAVE Plan (income $40K) | ~$29 | 20 years (forgiveness) | Varies |
Strategies to Pay Off Student Loans Faster
Target the highest-interest loans first
If you have multiple loans, the avalanche method — paying extra toward the loan with the highest interest rate while making minimum payments on the rest — saves the most money mathematically. Once the highest-rate loan is paid off, redirect that payment to the next highest. This approach minimizes total interest across your entire portfolio of loans.
Never skip payments during income surges
Tax refunds, work bonuses, and side income windfalls are opportunities to make lump-sum principal payments. A single $1,500 tax refund applied to principal can cut months off your repayment and save hundreds in interest. The key is making these payments specifically toward principal — not just the next regular payment — so contact your servicer to ensure the extra amount is applied correctly.
Automate everything
Most federal loan servicers offer a 0.25 percent interest rate reduction when you enroll in autopay. On a $37,850 balance, that small reduction saves about $475 over the life of a 10-year loan. Set up autopay for your minimum payment, then set up a separate automatic transfer of your Beezy earnings to your servicer each month for an extra principal payment.
Frequently Asked Questions
Should I choose an income-driven plan or the standard plan?
If your monthly payment on the Standard Plan is manageable (under 10 percent of your gross income), stick with it — you will pay less interest overall. If the standard payment is more than you can handle, an income-driven plan like SAVE prevents default while keeping you in good standing. You can always switch plans or make extra payments on an income-driven plan to pay off faster.
Does making extra payments actually reduce my loan balance?
Yes, but you must specify that extra payments go toward principal. Contact your servicer or use their online portal to direct extra payments to principal only. Without this instruction, some servicers apply extra payments to future interest instead, which does not reduce your balance or save you money.
Can I deduct student loan interest on my taxes?
You can deduct up to $2,500 in student loan interest per year on your federal tax return if your modified adjusted gross income is below $90,000 (single) or $185,000 (married filing jointly) in 2026. This deduction is available even if you do not itemize — it is an above-the-line deduction that directly reduces your taxable income.
What happens if I cannot make my student loan payments?
Contact your servicer immediately — do not ignore the problem. You can switch to an income-driven plan, request a deferment or forbearance, or explore forgiveness programs. Defaulting on federal student loans (270 days of missed payments) triggers wage garnishment, tax refund seizure, and credit score damage. There is always a better option than default.
Take Control of Your Student Loan Repayment
Student loan repayment in 2026 is not one-size-fits-all. The right plan depends on your income, your goals, and how aggressively you want to eliminate your debt. But every borrower benefits from the same principle: the more you can throw at your principal today, the less you pay in the long run. Whether it is $50 or $300 per month of extra income, it matters. Start earning with I am Beezy for free and put every extra dollar toward the finish line — your debt-free future is closer than you think.
