The list of worst mistakes to make when paying off student loans will vary Advisor by Advisor and Author by Author.

However, the worst mistakes that a person can make when paying off their student loans really relates to the individual and their financial circumstances.

On a general basis, we believe the following are the four biggest mistakes a person can make when paying off their student loans.

• Not understanding what they have and where it is
  • Too many people have no understanding of what kinds of loans they have, what the interest rates are, how much interest is being accrued, how much of their payment is actually going towards the principal balance, etc.
  • Without having a solid understanding, it is impossible to pay off your loans in the most efficient manner.  It is highly likely you will spend more in interest, extend the payback period, and impede the ability to grow your net worth.
• Leaving their loans on autopilot after graduation
  • Those who do not actively make a plan for how to best pay back their student loans after graduation will likely overpay and decrease their ability to achieve other financial goals.
  • Too many neglect consolidating into a loan eligible for forgiveness (for those in the applicable scenarios) or refinancing into a lower rate private loan.
• Not taking advantage of “free” discounts
  • Many private lenders offer discounts for enrolling in autopay.  This is at no additional cost and can be done in minutes, this is an easy money saver.  

The fourth and final biggest mistake is not creating a comprehensive plan tailored around your financial goals and debt pay-off.  The longer those with student loans wait to put a plan in place, the higher the chances are they spend more in interest and decrease their ability to achieve their other financial goals.