As many as one in five federal student loan borrowers are in default, meaning they're at least nine months behind on their payments, according to an Associated Press analysis of data from the Office of Federal Student Aid.

The analysis found that roughly 9.5 million borrowers in default collectively owe more than $233 billion in student debt. Defaulting on your student loans can tank your credit score and trigger even more serious consequences, including wage garnishment.

Paying down your student loans, or simply getting out of default, can help stop the damage from snowballing. But with inflation and the rising cost of everyday essentials continuing to strain household budgets, finding extra money to put toward your loans can feel out of reach.

The good news: Even if money is tight, there are still ways to free up cash and make meaningful progress on your student debt. Below, CNBC Select shares several strategies to help you find extra funds for loan repayment without dramatically changing your budget.

Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.

If you don't have extra cash to put toward your student loans, the rewards you earn from a cash-back credit card can help bridge the gap.

Cash-back cards let you earn rewards on everyday purchases like groceries, gas and dining. Depending on the card, you can earn as much as 2% or more back on eligible spending, then redeem those rewards as a statement credit or deposit them into a linked bank account to make a student loan payment.

This strategy works best if you already use a credit card responsibly. To avoid paying interest that could outweigh the value of your rewards, pay your balance in full each month and only charge what you can afford.

If you already have a cash-back card, check how it earns rewards. Some cards offer the same cash-back rate on every purchase, while others offer higher rewards in specific spending categories that may rotate throughout the year.

For a simple, low-maintenance option, the Citi Double Cash® Card is one of our favorites. It earns 1% cash back when you make a purchase and an additional 1% when you pay it off. The card also has no annual fee and no cap on the amount of cash back you can earn.

If you're willing to put in a little more effort, the Chase Freedom Flex offers the chance to earn even more. Cardholders can earn 5% cash back on up to $1,500 in combined purchases in rotating bonus categories each quarter after activation. The card also earns 5% on travel purchased through Chase Travel℠, 3% on dining at restaurants (including takeout and eligible delivery services) and drugstore purchases, and 1% on all other purchases.

What makes the Citi Double Cash® Card special is that it sits near the top of its class in several categories. It is an excellent option if you want flat-rate rewards, a balance transfer intro-APR or no annual fee.

  • Balance transfers get a long intro APR
  • Generous flat-rate cash-back rewards structure
  • Earns transferable rewards

  • No annual fee

  • It has a foreign transaction fee

  • Intro APR only applies to balance transfer
  • Points transfer ratios are reduced compared to premium cards

Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.

  • Earn $200 cash back after you spend $1,500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back.
  • Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. To earn cash back, pay at least the minimum due on time. Plus, earn 5% total cash back on hotel, car rentals and attractions booked with Citi Travel.
  • Balance Transfer Only Offer: 0% intro APR on Balance Transfers for 18 months. After that, the variable APR will be 17.49% - 27.49%, based on your creditworthiness.
  • Balance Transfers do not earn cash back. Intro APR does not apply to purchases.
  • If you transfer a balance, interest will be charged on your purchases unless you pay your entire balance (including balance transfers) by the due date each month.
  • There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After that, your fee will be 5% of each transfer (minimum $5).

There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. A balance transfer fee of 5% of each transfer ($5 minimum) applies if completed after 4 months of account opening.

3%

The Chase Freedom Flex® is an excellent cash-back card with generous rotating quarterly categories. In additional the rewards, you also can take advantage of the intro APRs for purchases and balance transfer for more than a year.

  • Long intro APR for purchases and balance transfers
  • Rewarding quarterly bonus categories

  • No annual fee

  • Bonus categories are capped each quarter

  • Has a foreign transaction fee

  • 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate (then 1%)

  • 5% cash back on travel booked through Chase Travel℠
  • 3% on drugstore purchases and on dining (including takeout and eligible delivery services)
  • 1% cash back on all other purchases

Intro fee of either $5 or 3% of the amount of each transfer, whichever is greater, on transfers made within 60 days of account opening. After that, either $5 or 5% of the amount of each transfer, whichever is greater.

3%

If you're already thinking about opening a new checking account, a welcome bonus could give you extra money to put toward your student loans.

Many banks offer cash bonuses to new customers who meet certain requirements, such as setting up direct deposit or maintaining a minimum balance for a set period. Depending on the offer, bonuses can range from $50 to several thousand dollars.

One of our top picks, SoFi's Checking and Savings, offers a ***$50 bonus when you receive qualifying direct deposits totaling between $1,000 and $4,999.99 within the first 25 days of opening the account. Customers who receive $5,000 or more in qualifying direct deposits during that same period can earn a $400 bonus. This offer is available through Dec. 31, 2026.

The Chime Checking Account 1 also offers a $200 cash bonus when you receive at least $500 in qualifying direct deposits within the first 34 days after opening the account. New customers can also earn up to $50 per month in cash back on qualifying debit card purchases for the first three months.

  • Earn a cash welcome bonus just for setting up direct deposit, giving you a head start on your savings goals.
  • Unlock a competitive APY on your savings with direct deposit, so your money works harder without any extra effort.
  • No minimum balance or monthly fees means you keep more of what you earn, regardless of your account balance.
  • Get your paycheck deposited up to 2 days early with direct deposit, so you’re never waiting on funds you’ve already earned.
  • Roundups automatically save your spare change with every purchase, and Vaults let you organize savings toward specific goals.
  • Comes with a checking account, ATM access and no foreign transaction fees

  • FDIC insured up to $3 million through the SoFi Insured Deposit Program,* offering far more protection than the standard $250,000 limit.

  • Savings APY drops significantly without direct deposit, so you’ll earn less if you don’t use it as your primary bank.

  • Out-of-network ATM fees aren’t reimbursed, which could add up if you frequently use cash.

  • No physical branches, so customer support is entirely online or by phone.

  • Annual Percentage Yield (APY)- Chime® Checking (no interest), required to enroll in Chime High-Yield Savings 3.75% APY. *

  • Minimum balance- $0, no minimum deposit or balance

  • Fees- No monthly maintenance or overdraft fees. SpotMe® service with eligibility for no-fee overdraft up to $200.*

  • Perks- Paycheck available up to two days early with direct deposit. Automatically save part of your direct deposits of $1 or more. Round Ups feature transfers spare change from purchases to savings. - Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. Generally, these funds are available on the day the payment file is received, which may be up to 2 days earlier than the scheduled paymedate.

  • Maximum transactions- Cash withdrawals from checking up to $515 per day at any ATM or as an over-the-counter bank withdrawal. $2,500 maximum daily spend, including any withdrawals, purchases and incurred fees.

  • ATMs- 47,000+ in-network no-fee ATMs.*

  • Out-of-network ATM withdrawal and over the counter advance fees may apply except at MoneyPass ATMs in a 7-Eleven, or any Allpoint or Visa Plus Alliance ATM.

  • Mobile check deposit- Yes

  • Terms apply.

ATMs: Out-of-network ATM withdrawal and over the counter advance fees may apply except at FCTI® ATMs in a 7-Eleven® or Speedway, or any Allpoint® or Visa® Plus Alliance ATM participating in the Allpoint network. SpotMe: SpotMe® on Credit is an optional, no interest/no fee overdraft line of credit tied to the Secured Deposit Account. SpotMe on Debit is an optional, no fee service attached to your Chime Checking Account (individually or collectively, ""SpotMe""). Eligibility for SpotMe requires $200 or more in qualifying direct deposits to your Chime Checking Account each month. Qualifying members will be allowed to overdraw their Chime Checking Account and/or their Secured Deposit Account up to $20 in total, but may be later eligible for a higher combined limit of up to $200 or more based on member's Chime account history, direct deposit frequency and amount, spending activity and other risk-based factors. Your SpotMe Limit will be displayed to you within the Chime mobile app. You will receive notice of any changes to your SpotMe Limit. SpotMe for Credit and SpotMe on Debit share a single SpotMe limit. Your SpotMe Limit may change at any time, at Chime or its banking partners' discretion. Although there are no overdraft fees, there may be out-of-network or third-party fees associated with ATM transactions or OTC cash withdrawal fees at retailers. SpotMe won't cover non-card transactions, including ACH s, Pay Anyone s, or Chime Checkbook transactions. SpotMe terms and conditions. APY: 3.75% Annual Percentage Yield ("APY") applies if you maintain Chime Prime status, otherwise 3.00% Chime Plus APY (if eligible) or 0.75% standard APY will apply. APYs are effective as of 01/29/2026, are variable and subject to change. No min. bal. required.

Cutting your monthly expenses is one of the easiest ways to free up money in your budget — and redirect those savings toward your student loans.

Start by canceling subscriptions and other recurring charges you no longer use. Even a few small monthly expenses can add up to hundreds of dollars over the course of a year. If you're not sure where to start, a budgeting app like Rocket Money can help you identify, manage and cancel unwanted subscriptions. It also includes budgeting tools that make it easier to track your spending, spot opportunities to save and stay on top of your finances.

  • Cost- The basic plan is free. Rocket Money Premium is $7 to $14 a month with a 7-day free trial. Bill negotiation services cost 35% to 60% of the first-year savings, if the negotiation is successful.

  • Standout features- Easily cancel unwanted subscriptions, track your spending and credit score, automate savings and get help lowering bills. Rocket Money Premium includes additional services like net-worth tracking, credit reports and a subscription cancellation concierge service

  • Security- Rocket Money accesses transaction data via an encrypted token, uses Plaid API so user credentials are never stored, provides bank-level 256-bit encryption and hosts servers on Amazon Web Services

  • Availability- Offered online and on both the App Store (for iOS) and on Google Play (for Android)

Terms apply.

For bills you can't eliminate, you may still be able to lower what you pay each month through negotiation. Expenses like your cellphone and internet bills, as well as subscriptions for streaming services, gyms and other memberships, may be eligible for discounts or promotional rates if you ask.

If you'd rather not negotiate yourself, services like Billshark can do it for you. Billshark charges 40% of the savings it secures, but you won't pay anything upfront. If the company can't lower your bill, you won't be charged.

  • Cost- 40% of whatever savings you earn, $9 per canceled subscription

  • Standout features- "Sharks" negotiate with phone, internet, cable, security and other providers for lower rates. Subscription cancellation service, "No savings, no fee" policy

  • Categorizes your expenses- No

  • Links to accounts- Not required; you create an account and upload your bills (as opposed to linking bank accounts)

  • Availability- Available for iOS and Android

  • Security features- Encrypted with bank-level security (256-bit encryption), doesn't store credit card information or share data with third parties

Terms apply.

Finally, consider comparison shopping for recurring bills, especially your insurance.

For example, you may be able to save by switching car insurance providers. The insurer that offered you the lowest rate a few years ago may no longer be your cheapest option. Premiums can change over time based on factors like your age, driving record, credit (where permitted), location and vehicle, so it's worth comparing quotes periodically.

An AI-powered comparison tool like Jerry can help you compare real-time quotes from dozens of insurers in just a few minutes. We also like that it monitors your rates over time and alerts you when another insurer offers a lower price, making it easier to keep your insurance costs in check.

  • Highlights- Jerry is an AI tool that allows drivers to compare auto insurance policies from dozens of insurers in minutes. You'll need to provide personal information, including your name, address, phone number and vehicle information, but it gives you estimated rates from several insurers.

  • Availability- Jerry is a licensed insurance agency in all 50 U.S. states and Washington, D.C.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every student loan article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of student loan and credit products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

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*New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Eligible Direct Deposits received within 25 calendar days of your first Eligible Direct Deposit of $1 or more) OR $400 (with at least $5,000 total Eligible Direct Deposits received within 25 calendar days of your first Eligible Direct Deposit of $1 or more). Cash bonus amount will be based on the total amount of Eligible Direct Deposit received within 25 calendar days of your first Eligible Direct Deposit of $1 or more. If you have satisfied the Eligible Direct Deposit requirements but have not received a cash bonus in your Checking account, please contact us at 855-456-7634 with the details of your Eligible Direct Deposit. Direct Deposit Promotion begins on 5/15/2026 and will be available through 12/31/26. See full bonus and annual percentage yield (APY) terms at sofi.com/banking/checking-offer/

1Chime is a financial technology company, not a bank. Banking services provided by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC.

Editorial Note:Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.