Share While student debt is technically interest-free, Canna (pictured) said it is crucial to remember that it is always indexed against inflation Canna Campbell's five-step plan for paying off student debt 1. Contact the ATO and find out exactly how much debt you owe. 2. Draft a monthly budget that allows you to make higher repayments of your loan so you can pay it off quicker. 3. Set mini financial goals around reducing student debt. 4. Allow yourself some small rewards every time you repay a big chunk. 5. Be realistic - don't overstretch yourself or prioritise student debt over toxic credit card loans because it is likely the interest rate is higher than the student loan.