When you begin repaying your student loans, you’ll likely be put on a 10-year repayment plan. While you can refinance for a longer repayment term, there aren’t any private 30-year student loan refinance options available.
However, there are longer terms available for federal student loans.
Extending your repayment term for federal loans
Generally, federal loans will start out on astandard repayment planwith a 10-year term. Here are your other options to extend your repayment term:
- Extended repayment term:If you have more than $30,000 in federal Direct Loans, you could opt for an extended repayment plan or anextended graduated repayment plan. Both options give you a 25-year term length. While this isn’t quite 30 years, it’s pretty close.
- Income-driven repayment:If you sign up for an income-driven repayment (IDR) plan, your payments will be based on your income. This can be especially helpful if you’re not earning very much or are unemployed. Plus, you could have any remaining balance forgiven after 20 to 25 years, depending on the plan.
The four IDR plans available:
- Income-Based Repayment (IBR)
- Income-Contingent Repayment (ICR)
- Pay As You Earn (PAYE)
- Revised Pay As You Earn (REPAYE)
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Refinancing to a private loan term longer than 20 years
If you have private student loans, you could refinance your student loans and choose to extend your repayment term. There are severalstudent loan refinancelenders that offer longer term lengths, such as 15 or 20 years.
Keep in mind:While you can alsorefinance federal student loans, you’ll lose your federal benefits and protections.
These include access to IDR plans as well as eligibility forstudent loan forgivenessprograms.
As of October 2021, there are only two lenders that offer term lengths longer than 20 years: Eastman Credit Union and U-fi from Nelnet.
Learn More:How Often Can You Refinance Student Loans?
8 refinancing lenders that offer 20-year terms
A 20-year term is the longest you’ll find with most refinancing lenders. Keep in mind that while choosing a longer term like 20 years will likely help you get a lower monthly payment, you’ll also pay more in interest over time.
Here are Credible’s partner lenders that offer 20-year terms on refinanced loans:
4.44.4
Credible rating
Fixed (APR)
3.99% -
Loan Amounts
$10,000 - $400,000
Min. Credit Score
720
Check Rates
on Credible’s website
View Details
Overview
Brazos offers refinancing loans to Texas residents who have a bachelor’s degree or higher from an eligible school. There are no origination or application fees, and interest rates could be lower than what you find with other private lenders.
However, some borrowers may find that Brazos has relatively strict eligibility requirements. Borrowers must have a minimum income of $60,000 and a credit score of 720 or higher. If you can’t meet those minimums alone, you can add a cosigner — but there’s no way to release your cosigner later.
Interest rates
Fixed or variable
Minimum credit score
720
Minimum income
$60,000
Loan terms
5, 7, 10, 15, or 20 years
Loan amounts
$10,000 minimum, up to $150,000 for bachelor’s degrees and $400,000 for graduate, medical, law, or other professional degrees
Cosigner release
None
Eligibility
Borrower must be a Texas resident and a U.S. citizen or permanent resident who has a bachelor’s degree or higher.
Read full review
4.74.7
Credible rating
Fixed (APR)
5.89% -
Loan Amounts
$10,000 - $750,000
Min. Credit Score
Does not disclose
Check Rates
on Credible’s website
View Details
Overview
Citizens offers student loan refinancing to qualifying borrowers who refinance at least $10,000 in student loan debt.
Undergraduate borrowers can refinance up to $300,000 in student loans, while those who borrowed for graduate or professional degrees have higher limits of $500,000 or $750,000. Citizens offers fixed and variable rates and repayment terms between five and 20 years.
If you’re a medical resident, you can refinance your student loans and only pay $100 per month for up to four years while completing your residency or fellowship.
Interest rates
Fixed or variable
Minimum credit score
Does not disclose
Minimum income
Does not disclose
Loan terms
5, 7, 10, 15, or 20 years
Loan amounts
$10,000 minimum, with a maximum of $300,000 for bachelor’s degree or below; $500,000 for graduate degrees; and $750,000 for professional degrees
Cosigner release
36 months
Eligibility
Must refinance at least $10,000 in student loans and be a U.S. citizen, permanent resident, or resident alien with a valid U.S. Social Security number. Must have earned at least a bachelor's degree to qualify.
Read full review
4.44.4
Credible rating
Fixed (APR)
4.84% -
Loan Amounts
$10,000 up to total refinance amount
Min. Credit Score
680
Check Rates
on Credible’s website
View Details
Overview
Borrowers who graduated with at least a bachelor’s degree may refinance their student loans with ELFI. Every applicant is assigned a student loan advisor to help guide them through the process.
Students who wish to take over their parents’ PLUS loan may do so by refinancing with ELFI — something not offered by every lender — but spouses can’t consolidate their loans into a single refinancing loan.
Unfortunately, ELFI doesn’t allow borrowers to release cosigners, nor does it offer any rate discounts. However, borrowers who experience financial hardship may be eligible for up to 12 months of forbearance.
Interest rates
Fixed and variable
Minimum credit score
680
Minimum income
$35,000
Loan terms
5, 7, 10, 15, or 20 years for student loan refinancing; 5, 7, or 10 years for parent loan refinancing
Loan amounts
Minimum of $10,000 with no set maximum.
Cosigner release
None
Eligibility
Must be a U.S. citizen or permanent resident with a bachelor’s degree or higher. Must have at least $10,000 in student loans to refinance and a minimum credit history of 36 months.
Read full review
3.83.8
Credible rating
Fixed (APR)
6.00% -
Loan Amounts
$7,500 - $200,000
Min. Credit Score
700
Check Rates
on Credible’s website
View Details
Overview
EdvestinU is a loan program offered by Granite Edvance Corporation and offers affordable rates for refinance loans. Borrowers can refinance federal and private loans, and fixed and variable rate loans are available.
EdvestinU refinance loans are available to residents of about 20 states, and the lender has higher loan minimums and lower maximums than some competitors. Both of these factors limit who can (or might want to) refinance with this lender, but eligible borrowers do have various student loan repayment term options.
Interest rates
Fixed or variable
Minimum credit score
700
Minimum income
Does not disclose
Loan terms
5, 10, 15, or 20 years
Loan amounts
$7,500 to $200,000
Cosigner release
24 months
Eligibility
U.S. citizens or permanent residents who are at least 18 years old and reside in Alaska, Arkansas, Colorado, Connecticut, Florida, Maine, Massachusetts, Nebraska, New Hampshire, New Jersey, New York, North Carolina, Puerto Rico, Rhode Island, Texas, Utah, Virginia, Washington, West Virginia, and Wisconsin.
Read full review
3.93.9
Credible rating
Fixed (APR)
6.15% -
Loan Amounts
$5,000 - $250,000
Min. Credit Score
670
Check Rates
on Credible’s website
View Details
Overview
INvestEd is an Indiana-based nonprofit lender that provides refinanced student loans nationwide. As a nonprofit, INvestEd offers competitive rates as well as an autopay discount. Cosigner release is also available after 12 on-time payments, which is less than many competitors.
However, the maximum refinance limit of $250,000 is below what other lenders may allow. Borrowers must also comply with strict credit and income requirements to qualify, or must have an eligible cosigner. While credit requirements are clearly defined, there’s no way to prequalify with a soft credit check.
Interest rates
Fixed or variable
Minimum credit score
670
Minimum income
Does not disclose
Loan terms
5, 10, 15, or 20 years
Loan amounts
$5,000 to $250,000
Cosigner release
12 months
Eligibility
U.S. citizens or permanent residents are eligible. Borrowers must meet minimum requirements including a FICO score of 670 or higher, annual income of $36,000, a debt-to-income ratio below 40% to 50%, a year of continuous employment, and no defaults or serious collection activities in recent years.
Read full review
All APRs reflect autopay and loyalty discounts where available | LightStream disclosure | SoFi Disclosures | Read more about Rates and Terms
Pros and cons of refinancing to an extended term
Before you refinance, be sure to consider the pros and cons of extending your repayment term:
Pros
- Could reduce your monthly payments:One of the major benefits of extending your repayment term is that it could lower your monthly payments. This could make your student loan payment easier to afford.
- Could lower your interest rate:Although short-term loans tend to havelower student loan interestrates than long-term loans, you might still be able to get a lower rate than what you currently have.
- Might help your credit:Making your loan payments on time can help you build your credit. With an extended repayment term, you could enjoy the positive impacts on your credit for longer.
For example:Theaverage student loan debtis $33,654, with theaverage student loan interest rateat 4.66% for undergraduates and 6.22% for graduates between 2006 and 2021.
If you began repaying $33,654 on a 10-year standard repayment plan at 6.22%, your payments would be $377 per month.
But if you refinanced to a 25-year term with 6% interest, your payment would be only $217 — saving you $160 each month.
Cons
- More expensive in the long run:Extending your repayment term will likely reduce your monthly payment. But because you’ll be paying your loan longer, you’ll have more accrued interest to repay over the life of your loan.
- More time to run into problems:The chances of having a financial problem that keeps you from making your payment is greater over the course of 25 years than, say, 10 years. If your income isn’t steady or goes through changes over time, you could be at a higher risk of student loandefault.
- Could be harder to qualify for credit:Having an extended repayment term means your loan will be counted in yourdebt-to-income (DTI) ratiofor that much longer. This could make it more difficult to be approved for a loan in the future, especially if you have a large balance.
- Might be difficult with bad credit:Althoughrefinancing with bad creditis possible, it can be tricky. Convincing lenders to give you a longer repayment term might be harder as well. Having a creditworthy cosigner could help you get approved as well as qualify for better loan terms, though you still might not get the extended term you want.
But remember:A longer repayment term also means more interest charges over time. While you’d save on your monthly payment in the above example, you’d also pay $31,396 in interest over the life of the loan compared to $11,629 on the standard repayment plan. That’s $19,767 more in interest.
If you refinanced to a 15-year loan with 4% interest instead, you’d pay $249 per month and $11,154 in interest over time. This means you’d pay $128 less per month while also saving $475 on interest compared to the standard repayment plan.
5 other ways to lower your monthly student loan payments
If you’re having a hard time affording your student loan payments, you still have a few other options:
Consolidating federal student loans
If you have multiple federal student loans, you can consolidate them with aDirect Consolidation Loan. This will leave you with one federal loan and one payment.
Additionally, with this option, you can extend your repayment term up to 30 years.
Keep in mind:Private student loan consolidationis also available. Depending on your credit, this might help you get a lower interest.
Just be careful — if you privately consolidate federal loans, you’ll lose access to federal benefits and protections.
Choose a graduated repayment plan
If you switch your federal student loans to agraduated repayment plan, you’ll still have a 10-year repayment term.
However, your payments will be start out lower in the beginning and will slowly increase over time.
Tip:
A graduated repayment plan could be especially helpful if you expect your income to grow in the future.
Take advantage of lender discounts
Many private student loan lenders offer rate discounts. Two common types of discounts include:
- Autopay discounts:If you sign up for automatic payments, your lender might give you a rate discount — typically 0.25%, depending on the lender.
- Loyalty discounts:If you have an existing account with a lender, you could qualify for a loyalty discount if you also choose to refinance your loans with them.
Tip:
Some lenders might provide other discounts, too. Check with your lender to see if there are any discounts you might qualify for.
For temporary relief, inquire about deferment and forbearance
Deferment and forbearanceprograms allow you to temporarily pause your payments if you experience financial hardship. Federal student loans provide both deferment and forbearance options, while private student loan options are up to the discretion of the lender.
If you’re considering deferment or forbearance, be sure to reach out to your servicer to see what programs you might qualify for.
Keep in mind:
Interest might still continue to accrue on your loans during deferment or forbearance periods, depending on the type of loans you have.
Refinance to a lower rate
You might qualify for a lower interest rate if you refinance, which could reduce your monthly payments. Even if you refinance for the same term length, a lower interest rate means you’ll likely have slightly smaller payments overall.
Meet the expert:
Lindsay VanSomeren
Lindsay VanSomeren specializes in credit and loans. Her work has appeared on Credit Karma, Forbes Advisor, LendingTree, and more.
