Pay off Large Student Loans: A Guide

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Paying off large student loans quick can feel like an impossible task. Many borrowers graduate from a bachelor’s degree program with nearly $25,000 in student loans, according to the Department of Education, and repaying this level of debt can be challenging.

Thankfully, there’s more than one strategy you can use to repay your student loans. Some borrowers make extra monthly payments and earn an autopay discount. Other borrowers can refinance or take advantage of tax deductions.

Use the following strategies and information as a guide to help you pay off large student loan debt.

How to pay off large amounts of education debt
How long does it take to pay off large loans?
Is it smart to pay off loans early?

8 strategies to pay off large student loans

Every borrower’s situation is unique, particularly when it comes to paying off large amounts of education debt. Consider your potential fit for these eight strategies.

1. Consider refinancing

If you think you can repay your student loans in fewer years than the original term, or if you have student loans with very high interest rates, you may want to consider refinancing. Refinancing involves replacing your current loan with a new loan, one that ideally will have either a lower interest rate or shorter term.

Some of the benefits of refinancing include:

Getting a lower interest rate
Lower monthly payments with an extended repayment term
Paying off your balance faster with a shorter repayment term
Releasing a cosigner from your original loan

Important: Refinancing isn’t the right choice for all borrowers, especially since there are drawbacks. For instance, if you refinance a federal loan into a private loan, you won’t be eligible for any federal forgiveness or repayment programs. You may want to consider consolidating your federal education debt into a Direct Consolidation Loan instead. Talk to your loan servicer or a student loan counselor before refinancing.

By visiting Credible, you can learn more about student loan refinancing and compare rates from multiple lenders.

The student loan refinancing companies in the table below are Credible’s approved partner lenders. Because they compete for your business through Credible, you can request rates from all of them by filling out a single form. Then, you can compare your available options side-by-side. Requesting rates is free, doesn’t affect your credit score, and your personal information is not shared with our partner lenders unless you see an option you like.

Lender	Variable rates from (APR)	Fixed rates from (APR)
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	5.35%+	3.99%+
Fixed APR: 3.99%+ Variable APR: 5.35%+ Min. credit score: 720 Loan amount: $10,000 to $400,000 Loan terms (years): 5, 7, 10, 15, 20 Repayment options: Military deferment, forbearance Fees: Late fee Discounts: Autopay Eligibility: Must have a credit score of at least 720, a minimum income of $60,000, and must be a resident of Texas Customer service: Email, phone Soft credit check: 720 Cosigner release: No Loan servicer: Firstmark Services Max. Undergraduate Loan Balance: $100,000 - $149,000 Max. Graduate Loan Balance: $200,000 - $400,000 Offers Parent PLUS Refinancing: Does not disclose
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	7.02%+¹	5.89%+¹
Fixed APR: 5.89%+¹ Variable APR: 7.02%+¹ Min. credit score: Does not disclose Loan amount: $10,000 to $750,000 Loan terms (years): 5, 7, 10, 15, 20 Repayment options: Immediate repayment, academic deferment, military deferment, forbearance, loans discharged upon death or disability Fees: Late fee Discounts: Autopay, loyalty Eligibility: Must be a U.S. citizen or permanent resident and have at least $10,000 in student loans Customer service: Email, phone, chat Soft credit check: Yes Cosigner release: After 24 to 36 months Loan servicer: Firstmark Services Max. Undergraduate Loan Balance: $100,000 to $149,000 Max. Graduate Loan Balance: Less than $150,000 Offers Parent PLUS Refinancing: Yes
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	6.99%+²	6.99%+²
Fixed APR: 6.99%+² Variable APR: 6.99%+² Min. credit score: Does not disclose Loan amount: $5,000 to $300,000 Loan terms (years): 5, 7, 10, 12, 15 Repayment options: Military deferment, forbearance, loans discharged upon death or disability Fees: Late fee Discounts: Autopay Eligibility: All states except for ME Customer service: Email, phone, chat Soft credit check: Yes Cosigner release: After 24 to 36 months Loan servicer: College Ave Servicing LLC Max. Undergraduate Loan Balance: $100,000 to $149,000 Max. Graduate Loan Balance: Less than $300,000 Offers Parent PLUS Refinancing: Yes
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	8.07%+⁵	6.0%+⁵
Fixed APR: 6.0%+⁵ Variable APR: 8.07%+⁵ Min. credit score: 700 Loan amount: $7,500 to $200,000 Loan terms (years): 5, 10, 15, 20 Repayment options: Immediate repayment, academic deferment, forbearance, loans discharged upon death or disability Fees: None Discounts: Autopay Eligibility: Must be a U.S. citizen or permanent resident and submit two personal references Customer service: Email, phone Soft credit check: Yes Cosigner release: After 24 months Loan servicer: Firstmark Services Max. Undergraduate Loan Balance: $150,000 to $249,000 Max. Graduate Loan Balance: $150,000 to $199,000 Offers Parent PLUS Refinancing : Yes
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	5.28%+³	4.84%+³
Fixed APR: 4.84%+³ Variable APR: 5.28%+³ Min. credit score: 680 Loan amount: $10,000 to $250,000 Loan terms (years): 5, 7, 10, 15, 20 Repayment options: Forbearance Fees: None Discounts: None Eligibility: Must be a U.S. citizen or permanent resident, have at least $15,000 in student loan debt, and have a bachelor’s degree or higher from an approved school Customer service: Email, phone Soft credit check: Yes Cosigner release: No Loan servicer: Mohela Max. Undergraduate Loan Balance: $250,000 Max. Graduate Loan Balance: $250,000 Offers Parent PLUS Refinancing: Yes
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	8.5%+⁴	6.15%+⁴
Fixed APR: 6.15%+⁴ Variable APR: 8.5%+⁴ Min. credit score: 670 Loan amount: $5,000 to $250,000 Loan terms (years): 5, 10, 15, 20 Repayment options: Academic deferment, military deferment, forbearance Fees: Late fee, returned payment fee Discounts: Autopay Eligibility: Must be U.S. citizen or permanent resident Customer service: Email, phone, chat Soft credit check: Yes Cosigner release: Yes Max undergraduate loan balance: $250,000 Max graduate loan balance: $250,000 Offers Parent PLUS refinancing: Yes
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	5.54%+	5.24%+
Fixed APR: 5.24%+ Variable APR: 5.54%+ Min. credit score: 700 Loan amount: $5,000 to $300,000 Loan terms (years): 5, 7, 10, 15 Max. undergraduate Loan Balance: $125,000 Time to Fund: 10 to 30 days Repayment options: Immediate repayment, forbearance Fees: Late fee Discounts: Autopay Eligibility: Must be a U.S. citizen or permanent resident and have already graduated with at least an associate degree from an eligible institution Customer service: Email, phone Soft credit check: Yes Cosigner release: After 12 months Loan servicer: LendKey Technologies Inc. Max. graduate Loan Balance: $175,000 Credible Review: LendKey Student Loans review Offers Parent PLUS Refinancing: No
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	N/A	6.2%+
Fixed APR: 6.2%+ Variable APR: N/A Min. credit score: 670 Loan amount: $10,000 up to the total amount Loan terms (years): 7, 10, 15 Repayment options: Military deferment, loans discharged upon death or disability Fees: None Discounts: None Eligibility: Must be a U.S. citizen or permanent resident and have at least $10,000 in student loans Customer service: Email, phone Soft credit check: Yes Cosigner release: No Loan servicer: AES Max. Undergraduate Loan Balance: No maximum Max. Gradaute Loan Balance: No maximum Offers Parent PLUS Refinancing: Yes
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	7.12%+ - 11.19%+⁸	7.60%+ - 14.50%+⁸
Fixed APR: 7.12%+ - 11.19%+⁸ Variable APR: 7.60%+ - 14.50%+⁸ Min. credit score: Mid-to-high 600's FICO⁸ Loan amount: $5,000 to $500,000 (depending on degree) Loan terms (years): 5, 7, 10, 15, 20, 25 years⁸ Time to fund: 3 business days Repayment options: Immediate Fees: Late fee, NSF fee Discounts: Autopay⁸ Eligibility: Must be a U.S. citizen or have permanent residency status with a valid U.S. Social Security number Customer service: Email, phone Soft credit check: Yes⁸ Cosigner release: After 24 months⁸ Loan servicer: Firstmark Services Max. undergraduate loan balance: $125,000 Max. graduate loan balance: $500,000 Offers Parent PLUS loans: Yes Min. income: You or your cosigner must meet Nelnet Bank's income criteria
Credible Rating Credible lender ratings are evaluated by our editorial team with the help of our loan operations team. The rating criteria for lenders encompass 78 data points spanning interest rates, loan terms, eligibility requirement transparency, repayment options, fees, discounts, customer service, cosigner options, and more. Read our full methodology. View details	N/A	6.34%+
Fixed APR: 6.34%+ Variable APR: N/A Min. credit score: 680 Loan amount: $7,500 to $250,000 Loan terms (years): 5, 10, 15 Repayment options: Academic deferment, military deferment, forbearance, loans discharged upon death or disability Fees: None Discounts: Autopay Eligibility: Available in all 50 states; must also have at least $7,500 in student loans and a minimum income of $40,000 Customer service: Email, phone Soft credit check: Does not disclose Cosigner release: No Loan servicer: Rhode Island Student Loan Authority Max. Undergraduate Loan Balance: $150,000 - $249,000 Max. Graduate Loan Balance: $200,000 - $249,000 Offers Parent PLUS Refinancing: Yes
Compare personalized rates from multiple lenders without affecting your credit score. 100% free!Compare Now Trustpilot
All APRs reflect autopay and loyalty discounts where available \| ¹Citizens Disclosures \| 2College Ave Disclosures \| 5EDvestinU Disclosures \| ³ ELFI Disclosures \| 4INvestEd Disclosures \| 7ISL Education Lending Disclosures \| 8Nelnet Bank Disclosures

2. Apply for loan forgiveness

The CARES Act of 2020 was designed to provide economic assistance to a variety of Americans, including student loan holders. Federal student loan repayments are suspended with a 0% interest rate — and collections are halted — until September 1, 2023.

Good to know: The federal government also offers a variety of other forgiveness programs for qualifying borrowers including Public Service Loan Forgiveness for government and not-for-profit employees and Teacher Loan Forgiveness for educators serving low-income schools.

3. Stick to a budget

This can help you afford your minimum monthly payment comfortably. It can also help you increase your monthly payment to repay your loans faster.

Make a list of your monthly expenses and how they compare to your monthly income. This will help you identify which percentage of your income is devoted to your minimum monthly payment. When you see an area where you can cut back on spending, you might devote that extra money toward your loans each month.

4. Make additional payments

Making additional payments each month can significantly reduce the overall amount you’ll repay in interest.

For example: If you have a $10,000 balance on a 10-year term at a 5.00% interest rate, you’ll have a monthly payment of $106 and pay $2,728 in overall interest.

But if you were to make an additional payment of only $20 per month, you’ll lower your overall interest payment to $2,165 — that’s almost $600 in total savings just by devoting an extra $5 per week to your loans.

Use a student loan repayment calculator to see how much additional payments could save you over the lifetime of your loan.

5. Set up automatic payments

Some lenders offer a discount on automatic payments. For instance, federal loan servicers offer an interest rate deduction of 0.25 percentage points for automatic payments made on Direct Loans. Many private lenders offer the same discount.

Missing your monthly payment by even a single day can result in serious consequences. Automatic payments help ensure that your monthly payment is paid on time.

6. Use discounts to lower your interest rate

Discounts lowering your student loan interest rates are typically small, but any savings is worth securing. Scheduling automatic payments can provide you with a discount of 0.25 percentage points or more depending on the loan servicer.

There are also other discounts available that you may qualify for. Some banks offer discounts if you refinance your student loans with them. Other lenders may offer discounts to borrowers simply for graduating, earning good grades, or opening a second account (perhaps for savings or checking).

Talk to your lender about any discounts you may be eligible for.

7. Take advantage of tax deductions

Borrowers repaying their student loans may be eligible for tax deductions.

Tax deduction	Details
Student loan interest deduction	A deduction for the interest paid, up to $2,500 per year.
529 plan funds	Some 529 plans allow you to use the funds to repay up to $10,000 in student loans without taxing withdrawal amount.

8. Ask your employer about repayment assistance

Some employers offer repayment assistance programs. While many of these programs are available to eligible full-time employees, some companies offer monthly matching programs to part-time employees as well. Talk to your employer about its programs.

These employers currently offer employee student loan repayment assistance:

Aetna will match repayments up to $2,000 per year up to a maximum of $10,000.
Google will match up to $2,500 per year to employee student loan repayment.
New York Life offers $170 monthly over a period of five years towards student loans in good standing.
Western Union offers a $50 monthly contribution to employee student loans.

How long does it take to pay off student loans?

This can vary depending on the type of loan you take out, whether it’s federal or private.

When you take out a federal student loan, you’re assigned a 10-year loan term. You can switch repayment plans, to a term ranging from 10 to 30 years.

Private student loans depend on the lender, usually ranging between 5 and 20 years.

Loan type	Term length (years)
Federal Direct Subsidized	10
Federal Direct Unsubsidized	10
Federal Direct PLUS	10
Federal Direct Consolidation	10-30
Private loans	5-20+

Keep in mind: Repayment programs are available for qualified federal student loan borrowers. Some private loan servicers may also allow you to refinance to a different term length, or pause your repayment via forbearance.

Is it smart to pay off student loans early?

It depends on your financial situation. You’ll also hear conflicting advice when it comes to which method is best for paying off your student loans quick. Some experts suggest paying off your loans early to avoid paying unnecessary interest costs; others will advise you to pay them off in a way that ensures you’re still financially comfortable.

Pros of paying off your student loans early:

You accrue and pay as little interest as possible
You remove a financial obligation
You free up your debt-to-credit ratio which might allow you to pursue other financial goals

Cons of paying off your student loans early:

You might put a strain on your finances
You’ll have less money to devote to other payments or debts
You may have to reduce your lifestyle expenses in the short term
You might not be able to fully take advantage of employer reimbursem*nt or federal forgiveness programs

Remember, the best strategy for repaying your student loans will always be the one that aligns with your unique budget, lifestyle, and financial goals.

About the author

Nick Dauk

Nick Dauk is a Credible authority on personal finance. His work has been featured in Business Insider, The Edge, Bisnow, The Telegraph, BBC, and Culture Trip.

Home » All » Student Loan Refinancing » How to Pay Off Large Student Loans

Student Loan Refinancing Basics

How to Refinance Student Loans
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FAQs

Pay off Large Student Loans: A Guide | Credible? ›

These plans allow you to pay a portion of your discretionary income (10% to 20%) toward your $100,000 in student loans every month. After 20 to 25 years of on-time payments (a minimum of 10 years for PSLF), you can have your remaining student loan balance forgiven.

Read On ›

Is it possible to pay off $100,000 in student loans? ›

Discover More Details ›

Is it worth it to aggressively pay off student loans? ›

Paying off student loans early can benefit you financially, but it should typically come second to building your emergency fund and retirement savings. People with private student loans or without other debt tend to benefit more from paying off student loans early.

How long does it take to pay back $20,000 in student loans? ›

Say, for example, you borrow $20,000 in student loans with an interest rate of 5%. Your monthly payment on a standard 10-year term would be $212. By the end of the loan, you'll have paid $5,456 in interest.

See Details ›

How many people have over $100,000 in student loans? ›

Overall, more than 10% of graduate and professional students owe $100,000 or more in federal and private student loan debt, according to higher education expert Mark Kantrowitz. (For comparison, less than 1% of students borrow above that amount for bachelor's degree programs.)

Find Out More ›

Is it possible to pay off 300k in student loans? ›

Paying off such a large balance can be difficult and time consuming. For example, if you had $300,000 in federal student loans and paid them off on the standard 10-year repayment plan with a 6.22% interest rate, you'd end up with a monthly payment of $3,364 and a total repayment cost of $403,663.

Tell Me More ›

Why you shouldn't rush to pay off student loans? ›

Despite what you may think, paying off your loans as soon as possible isn't always the best thing to do. Getting ahead of your debt is, in general, a smart move; however, if it comes at the cost of avoiding other debt, or overshadowing other benefits you may be receiving, it could set you back in the long run.

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Is $80,000 in student loans bad? ›

The average student loan debt owed per borrower is $28,950, so $80K is a larger-than-average sum. However, paying off your balance is possible. Since payments on an $80,000 balance can be high, extending the repayment term to lower monthly payments may be tempting.

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Is student loan debt the worst debt? ›

In the world of loans, federal student loans offer some of the most manageable debt compared to debt like mortgages. Desjean added that federal student loans also offer some of the best protections for borrowers. "Federal loans offer much better borrower protections than private loans, for the most part."

What is the average age people pay off student loans? ›

A 2019 study from New York Life found that the average age when people finally pay off their student loans for good is 45.

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What is the average monthly payment for a $20000 student loan? ›

The monthly payment on a $20,000 student loan ranges from $212 to $1,796, depending on the APR and how long the loan lasts. For example, if you take out a $20,000 student loan and pay it back in 10 years at an APR of 5%, your monthly payment will be $212.

Read The Full Story ›

Is 70k in student loans a lot? ›

What is considered a lot of student loan debt? A lot of student loan debt is more than you can afford to repay after graduation. For many, this means having more than $70,000 – $100,000 in total student debt.

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How long it takes an average graduate to repay $100000 in student loans? ›

While the standard repayment term for federal loans is 10 years, it takes anywhere between 13 and 20 years on average to repay $100k in student loans. Here are some different scenarios to consider, depending on your financial situation and goals.

Get More Info Here ›

How long does it take to pay off 400k in student loans? ›

For student loans with a balance of $400,000 with a 7% average interest rate and a loan term of 10 years, your total monthly payment would be $4,644. The total repayment amount would be $557,321 (which includes $157,321 in interest).

Pay off Large Student Loans: A Guide | Credible (2024)

8 strategies to pay off large student loans

1. Consider refinancing

2. Apply for loan forgiveness

3. Stick to a budget

4. Make additional payments

5. Set up automatic payments

6. Use discounts to lower your interest rate

7. Take advantage of tax deductions

8. Ask your employer about repayment assistance

How long does it take to pay off student loans?

Is it smart to pay off student loans early?

Student Loan Refinancing Basics

FAQs

Pay off Large Student Loans: A Guide | Credible? ›

What is the average monthly payment for a $20000 student loan? ›