Paying off $50,000 in student loans can feel like a heavy burden. However, there are alternatives to the standard repayment plan that might help you pay off your debt more easily.
1. Refinance your student loans
Best for:
- Borrowers with high interest rates
- Borrowers with multiple loans they’d like to combine
- Borrowers with good to excellent credit
How long will it take to pay off $50k:This will vary based on the repayment terms you choose.
For example, if you refinance with a Credible partner lender, you might have a term ranging from five to 20 years.
If yourefinance your student loans, your old loans are paid off with a new one. Refinancing might get you alower interest rate, which could reduce the overall cost of your loan.
Or you could choose to extend your repayment term to lower your monthly payment — though this means you’ll likely pay more in interest over time.
Keep in mind:
While you can refinance federal loans, you’ll lose your federal benefits and protections, including access to income-driven repayment (IDR) plans and student loan forgiveness programs.
Learn More:Private Student Loan Consolidation
How much will you save if you refinance $50k?
With $50,000 in student loan debt, your monthly payments could be quite expensive. Depending on how much debt you have and your interest rate, your payments will likely be about $500 per month or more.
[Monthly payments based off the assumption that the loans have a fixed interest rate of 7% and that the borrower is on a 10-year repayment plan.]
Your potential savings from refinancing will vary based on your loan terms. For example, say you have a $50,000 loan balance with a 6.22% interest rate — theaverage student loan interest ratefor graduate students. On the standard 10-year repayment plan, you’d pay $561 per month and $17,277 in interest over time.
But if you refinanced to a new loan at 5% interest with the same 10-year repayment term, you’d pay $530 per month and $13,639 in interest — meaning you’d save $3,638 over the life of your loan.
Tip:
If refinance and shorten your repayment term, you might save even more — though you’d also end up with a higher monthly payment.
Check Out:Graduated Repayment Plan
2. Find a cosigner to refinance your $50,000 loan
Best for:
- Borrowers with high interest rates
- Borrowers struggling with monthly payments
How long will it take to pay off $50k:Your payoff time with a cosigner will depend on the terms of your refinanced loan.
Keep in mind that if you have poor credit, you might not qualify for longer repayment terms.
Generally, a credit score of 700 or higher is considered good. If you have a lower credit score, you might not qualify for refinancing on your own. And if you do manage to get approved, you likely won’t get the best interest rates.
However, you might be able to qualify for refinancing if you add a cosigner to your application.
Who can be a cosigner?A cosigner can be a trusted friend or relative with stable income and excellent credit who applies for a loan with you.
Keep in mind that if you fall behind on your payments, your cosigner will be liable for the loan.
Having a cosigner reduces the lender’s risk, so they’re more likely to give you a loan. Plus, Credible makes it easy to add a cosigner to your loan application — you can even compare multiple cosigners to see which one gets you the best loan terms and a lower interest rate.
4.44.4
Credible rating
Fixed (APR)
5.48% -
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
4.64.6
Credible rating
Fixed (APR)
5.49% -
Loan Amounts
$5,000 - $250,000
Min. Credit Score
680
Check Rates
on Credible’s website
View Details
Overview
Founded in 2009, LendKey partners with 300+ community banks and credit unions to connect borrowers with the loans they need. You can compare multiple lenders at once without affecting your credit score.
However, the exact terms and qualification requirements available through LendKey vary depending on your chosen community lender. While you can easily compare options, you’ll need to read the fine print of each offer to make sure the loan offers everything you need.
Interest rates
Fixed or variable
Minimum credit score
680
Minimum income
Does not disclose
Loan terms
5, 7, 10, or 15 years
Loan amounts
$5,000 to $250,000
Cosigner release
Varies based on lender's terms
Eligibility
Must be a U.S. citizen or permanent resident and have already graduated with at least an associate degree from one of LendKey lenders’ eligible institutions.
Read full review
3.93.9
Credible rating
Fixed (APR)
5.85% -
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
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 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
44
Credible rating
Fixed (APR)
6.20% -
Loan Amounts
$10,000 up to the total amount
Min. Credit Score
670
Check Rates
on Credible’s website
View Details
Overview
Not-for-profit lender Massachusetts Educational Financing Authority (MEFA) offers refinancing loans to student borrowers — and unlike many other lenders, you don’t need to have earned your degree to qualify. Only fixed-rate loans are available, but the rates are competitive and may be lower than what other lenders can offer. MEFA also doesn’t charge any fees or penalties.
Refinance loans start at $10,000, and you must have made six consecutive on-time payments on the original loans over the most recent six months. If you can’t qualify based on your own credit history, you can add a cosigner.
Interest rates
Fixed
Minimum credit score
670
Minimum income
Does not disclose
Loan terms
7, 10, or 15 years
Loan amounts
$10,000 up to your total debt
Cosigner release
None
Eligibility
Must be a U.S. citizen or permanent resident who is the primary borrower on education debt used to attend an eligible college or university. Must have made six on-time loan payments over the most recent six months. Must have no history of default or delinquency on education debt for the past 12 months and no history of bankruptcy or foreclosure in the past five years.
Read full review
3.73.7
Credible rating
Fixed (APR)
6.34% -
Loan Amounts
$7,500 - $250,000
Min. Credit Score
680
Check Rates
on Credible’s website
View Details
Overview
Founded in 1981, Rhode Island Student Loan Authority (RISLA) is a nonprofit lender that offers refinance loans to borrowers in all 50 states. Though most private lenders require borrowers to have graduated to qualify for refinancing, RISLA also serves borrowers who didn’t complete their degree.
RISLA offers income-based repayment to borrowers in financial distress. Additionally, borrowers may also access up to 24 months of forbearance in the event of financial hardship. Borrowers who return to graduate school may defer repayment on their refinancing loans for up to 36 months.
Interest rates
Fixed
Minimum credit score
680
Minimum income
$40,000
Loan terms
5, 10, or 15 years
Loan amounts
$7,500 minimum up to of $250,000, depending on degree
Cosigner release
None
Eligibility
Borrower or cosigner must meet credit requirements. Student must be a U.S. citizen or permanent resident and have used original student loans to attend an eligible degree-granting institution.
Read full review
4.74.7
Credible rating
Fixed (APR)
6.49% -
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
700
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
All APRs reflect autopay and loyalty discounts where available | LightStream disclosure | SoFi Disclosures | Read more about Rates and Terms
Find Out:How to Pay off Student Loans in 5 Years
3. Explore your forgiveness options
Best for:
- Borrowers who have federal student loans
- Employees of government or nonprofit organizations
How long will it take to pay off $50k:This will depend on the forgiveness program you choose. For example, if you work for a government or nonprofit organization and are eligible forPublic Service Loan Forgiveness (PSLF), you could have your loans discharged after making 10 years of qualifying payments.
Or if you sign up for an IDR plan, your loans could be forgiven after 20 to 25 years of on-time payments, depending on the plan.
There are severalstudent loan forgiveness programsavailable to borrowers with federal student loans. Many of these programs are geared toward certain professions — such as teachers, nurses, and lawyers.
Keep in mind:Unfortunately,private student loan forgivenessisn’t available.
However, you do have other options to help manage private student loans — such as refinancing for a lower interest rate.
If you decide to refinance your student loans, be sure to consider as many lenders as possible to find the right loan for you. Credible makes this easy — you can compare your prequalified rates from multiple lenders in two minutes.
Find out if refinancing is right for you
See Your Refinancing Options
4. Enroll in autopay
Best for:
- Borrowers with federal or private student loans
- Borrowers who want to save money on interest charges
Many federal student loan servicers and private lenders offer a rate discount to borrowers who sign up for automatic payments. Enrolling in autopay will typically knock 0.25% off of your rate — though there are also some lenders that offer a higher discount than this.
While this might seem like a small amount of savings, it can add up over time and help decrease your overall loan cost.
Tip:
Ask your servicer or lender if there are any other rate discounts available to you. If so, you might be able to lower your rate even further.
5. Explore income-driven repayment plans
Best for:
- Borrowers with federal student loans
- Borrowers struggling to keep up with monthly payments
How long will it take to pay off $50k:Depending on the IDR plan you choose, you could have the remaining balance of your federal student loans forgiven after 20 to 25 years of on-time payments.
If you can’t keep up with your federal student loan payments, switching from thestandard repayment planto an IDR plan could be a good choice.
Under an IDR plan, your payments will be based on your income — generally 10% to 20% of your discretionary income, depending on the plan. Your repayment term will also be extended.
There are four IDR plans to choose from:
- Income-Based Repayment (IBR):To qualify for IBR, you must demonstrate a partial financial hardship. Your payments will be capped at 10% to 15% of your income, depending on when you took out your loans. Loans taken out before July 1, 2014, could be forgiven after 20 years of on-time payments, while older loans could be forgiven after 25 years of on-time payments.
- Pay As You Earn (PAYE):Like IBR, you must demonstrate financial hardship to qualify for PAYE. Payments are capped at 10% of discretionary income, with potential forgiveness after 20 years of on-time payments.
- Revised Pay As You Earn (REPAYE):REPAYE is available to almost any federal student loan borrower. Payments are generally 10% of your discretionary income, though there’s no cap. Your loan balance could be forgiven after 20 to 25 years, depending on whether you took out your loans for undergraduate or graduate school.
- Income-Contingent Repayment (ICR):Any federal student loan borrower can sign up for ICR. Your payments will be limited to either 20% of your discretionary income or what you’d pay on an income-adjusted, 12-year repayment plan. Any remaining balance will be forgiven after 25 years. Additionally, ICR is the only plan that Parent PLUS Loan borrowers can sign up for — though you’ll need to consolidate your PLUS Loans first.
Tip:
If you’d like to sign up for an IDR plan, you can apply online.
Learn More:PAYE vs. REPAYE
6. Use the debt avalanche method
Best for:
- Borrowers who want to pay off their loans faster
How long will it take to pay off $50k:If you use the debt avalanche method, you might be able to pay off your loans faster than scheduled.
How long it will actually take will depend on your repayment terms as well as how many extra payments you can afford to make.
Since you have $50,000 in student loan debt, you likely have several different student loans — probably with different interest rates and monthly payments, too. To pay off your student loans and save money, using the debt avalanche method might be a good option.
Here’s how it works:
Because you’re paying off the highest interest debt first, the debt avalanche method could help you save money over the length of the repayment term.
Keep in mind:While the debt avalanche method can save you money in interest charges, it can also take a long time to see any results.
If you’re motivated by seeing small wins, you could consider thedebt snowball methodinstead.
Meet the expert:
Eric Rosenberg
Eric Rosenberg is an expert on personal finance. His work has been featured at Business Insider, Investopedia, The Balance, The Huffington Post, MSN Money, Yahoo Finance, Mint.com and more.
