By Christine Margiotta Pay off Loans Faster Step 1: Establish how much money can go toward paying off student loans each month by creating a budget worksheet that subtracts monthly expenses such as rent, food, clothing, utility bills and savings from your monthly income. Once you know what's left over, you know how much you can devote to paying off student loans. Step 2: Pay off higher-interest credit card debt before paying off student loans, if you can. If you are paying more than you have to on student loans, it is more prudent to apply the extra money to the higher-interest debt. The faster you get rid of the extra payment per month toward credit cards, the sooner you will be able to apply that money toward paying off student loans.