Illinois ranks eighth among the states with the highest student loan payments. These four smart money moves can make your debt more manageable.

CHICAGO, Oct. 14, 2025 – A college degree is an important, but costly, investment. Since the moratorium on interest on federal student loan has ended, student loans have grown into an even more significant hurdle for Americans. A new report from WalletHub highlights that more than 42.3 million Americans owe more than $1.67 trillion in student loan debt—an average of $39,000 per borrower. Accounting for a fixed interest rate of 6.53% on federal undergraduate loans, it would take 20 years’ worth of $288 monthly payments to pay off that $39,000 debt.

WalletHub found that monthly student loan payments vary widely across the country. Here in Illinois, which ranks eighth among the states with the highest student loan payments, the median monthly student loan payment is $226, up nearly 10% since last year.

With this in mind, and with October being National Financial Planning Month, it’s the perfect time to study up on smart money management tips. The Illinois CPA Society (ICPAS) suggests borrowers consider these tips to help pay down student loan debt faster and begin investing in long-term financial security:  

1. Apply for an income-driven repayment plan. Federal Student Aid’s income-driven repayment plans and loan consolidation programs set your monthly student loan payment at an amount that’s intended to be affordable based on your income and family size. Individuals who qualify may be able to lower their monthly payments or possibly earn loan forgiveness after a certain number of qualifying payments.
2. Make your payments—and savings—automatic. If you’re working and have your paycheck directly deposited, you could elect to have portions of your paycheck automatically diverted toward loan repayments and savings and retirement accounts. This is a great budgeting practice that’ll help you repay your loans on time (and faster if you elect to pay more than the minimum payment due) while also setting aside money for your future without having to think about it.
3. Assess your student loan interest rates. Take note of all your student loans and their current interest rates. Depending on when your loans were originated, sometimes consolidating and/or refinancing eligible loans can lower your overall interest rate and make meeting the repayment obligations easier. However, this may not be available or advisable to those already on income-driven repayment plans or those progressing toward loan forgiveness. Whenever refinancing or consolidation aren’t good strategic choices, prioritizing paying down the highest interest rate loans first can pay dividends.
4. Redirect your discretionary spending. Cutting back on unnecessary spending is a smart way to save. Although it takes discipline, reining in discretionary spending whenever possible affords you more money to allocate toward paying down high-interest debt and boosting your long-term savings.

You made the decision to invest in your education—make sure it pays off. If you’re unsure of how to navigate your finances, a CPA—a certified public accountant—can help. A CPA can guide you through formulating a long-term financial plan that also maximizes the tax deductions available on qualifying student loan debt and educational expenses. ICPAS’ free “Find a CPA” directory can help you find the trusted, strategic advisor that’s right for you based on location, types of services needed, and languages spoken. Find your CPA at www.icpas.org/findacpa.