Our goal is to give you the tools and confidence you need to improve your finances. Although we receive compensation from our partner lenders, whom we will always identify, all opinions are our own. Credible Operations, Inc. NMLS # 1681276, is referred to here as "Credible."
When you’re in school, it can be easy to rack up student loan debt without realizing how bad the situation really is.
The number of borrowers who have six figures’ worth of student loan debt (far more than the average student loan debt) is on the rise. For example, as of 2021, about 900,000 federal student loan borrowers owed $200,000 or more in federal student loans, according to StudentAid.gov.
The good news is that while paying off such a large balance can be difficult, it’s not impossible.
Here’s how to pay off $200,000 in student loans:
- Refinance your loans
- Add a cosigner to improve your interest rate
- Sign up for an income-driven repayment plan
- Pursue student loan forgiveness
- Use the debt avalanche or snowball method
1. Refinance your loans
Best for:
- Borrowers with high monthly payments
- Borrowers with good to excellent credit
- Borrowers with a creditworthy cosigner
- Borrowers with large private student loans
If you have high-interest student loans, going through the student loan refinance process makes a lot of sense. When you refinance, you work with a private lender to take out a new loan for the amount of your old ones, paying those off and getting a new loan with a new interest rate.
The new loan typically has different terms, including interest rate and length of repayment. You can refinance medical school loans, refinance law school loans, and more.
If you have good credit, you could qualify for a loan with a lower interest rate, helping you save money over the length of your loan. Or you can extend your repayment term to get a lower monthly payment that you can afford.
Just know that a longer term typically means you’ll pay more in interest over the life of the loan.
If you decide to refinance your student loans, be sure to consider as many lenders as possible to find the right loan for your situation.
This is easy with Credible — you can compare your prequalified rates from our partner lenders in the table below in two minutes.
| Lender | Fixed rates from (APR) | Variable rates from (APR) | Loan terms (years) | Loan amounts |
|---|---|---|---|---|
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.
| 4.85%+ | 5.3%+ | 5, 7, 10, 15, 20 | $10,000 up to $250,000 (depending on degree) |
|
||||
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.
| 6.8%+1 | 7.06%+1 | 5, 7, 10, 15, 20 | $10,000 to $500,000 (depending on degree and loan type) |
|
||||
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.
| 6.99%+2 | 6.99%+2 | 5, 7, 10, 12, 15, 20 | $5,000 to $300,000 (depending on degree type) |
|
||||
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.
| 6.0%+5 | 8.03%+5 | 5, 10, 15, 20 | $1,000 to $250,000 |
|
||||
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.
| 5.08%+3 | 5.28%+3 | 5, 7, 10, 12, 15, 20 | $10,000 to $250,000 |
|
||||
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.
| 5.9%+4 | 8.12%+4 | 5, 10, 15, 20 | $5,000 to $250,000 |
|
||||
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.
| 6.94%+ 7 | N/A | 5, 7, 10, 12, 15, 20 | Up to $300,000 |
|
||||
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.
| 4.49%+ | 5.02%+ | 5, 7, 10, 15 | Up to $300,000 |
|
||||
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.
| 5.75%+ | N/A | 7, 10, 15 | $10,000 up to the total amount of qualified education debt |
|
||||
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.
| 5.79%+ | N/A | 5, 10, 15 | $7,500 up to $250,000 (depending on highest degree earned) |
|
||||
| Compare personalized rates from multiple lenders without affecting your credit score. 100% free! |
||||
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 |
||||
Learn More: Standard Repayment Plan
2. Add a cosigner to improve your interest rate
Best for:
- Borrowers with poor or fair credit
- Borrowers who know someone willing to cosign their loan
You’ll typically need good to excellent credit to qualify for refinancing — a good credit score is usually considered to be 700 or higher. There are also several lenders that offer refinancing for bad credit, but these loans typically come with higher interest rates compared to good credit loans.
If you have less-than-perfect credit and are struggling to get approved, consider applying with a creditworthy cosigner to improve your chances. Even if you don’t need a cosigner to qualify, having one might get you a lower interest rate than you’d get on your own.
Just keep in mind that if you can’t make your payments, your cosigner will be on the hook.
If applying with a cosigner helps you get a better interest rate, you could save money on interest charges over the life of your loan. You can use our calculator below to see how much you can save by refinancing your student loans.
Step 1. Enter your loan balance
Step 2. Enter current loan information
Step 3. Enter your new loan information to start calculating your savings
If you refinance your student loan at % interest rate, you can save will pay an additional $ monthly and pay off your loan by . The total cost of the new loan will be $.
Does refinancing make sense for you?
Compare offers from top refinancing lenders to determine your actual savings.
Checking rates won’t affect your credit score.
Check Out: The Best Student Loan Refinance Companies
3. Sign up for an income-driven repayment plan
Best for:
- Borrowers with high monthly payments in relation to their income
- Borrowers with high federal student loan balances
If you can’t afford your current monthly payments and you have federal student loans, consider signing up for an income-driven repayment (IDR) plan.
Under an IDR plan, your loan servicer extends your repayment term to 20 to 25 years and sets your monthly payment at a percentage of your discretionary income. Some borrowers even qualify for $0 payments.
After 20 to 25 years of making payments, your remaining balance is forgiven. The discharged amount is taxable as income, but this approach can still give you substantial relief.
Here’s how the four main IDR plans compare to a few other federal repayment plan options:
| Repayment plan | Who’s eligible? | Monthly payment | Repayment terms | Eligible for loan forgiveness? |
|---|---|---|---|---|
| Standard repayment plan | Any borrower with Direct or FFEL Loans | Amount when payments are spread equally over 10 years (usually $50 minimum) | 10 years | No |
| Graduated repayment plan | Any borrower with Direct or FFEL Loans | Depends on loan amount (payments start low and increase every 2 years) | 10 years | No |
| Extended repayment plan | Any borrower with more than $30,000 in Direct or FFEL Loans | Fixed: Spread evenly over up to 25 years Graduated: Depends on loan amount (start low and increase every 2 years) | Up to 25 years | No |
| Income-Based Repayment (IBR) | Borrowers with partial financial hardship (no Parent PLUS Loans) | For borrowers who took out loans after July 1, 2014: 10% of discretionary income (never more than 10-year plan) For borrowers who took out loans before July 1, 2014: 15% of discretionary income (never more than 10-year plan) | For borrowers who took out loans after July 1, 2014: 20 years For borrowers who took out loans before July 1, 2014: 25 years | Yes |
| Pay As You Earn (PAYE) |
| 10% of discretionary income (never more than 10-year plan) | 20 years | Yes |
| Revised Pay As You Earn (REPAYE) | Any borrower (no Parent PLUS Loans) | 10% of discretionary income (no cap) | 20 years (25 years if repaying grad school debt) | Yes |
| Income Contingent Repayment (ICR) | Any borrower (Parent PLUS Loans must be consolidated) | 20% of discretionary income (or income-adjusted payment on 12-year plan) | 25 years | Yes |
Check Out: PAYE vs. REPAYE
4. Pursue student loan forgiveness
Best for:
- Employees of government or nonprofit organizations
- Borrowers with high federal student loan balances
- Borrowers with high monthly payments in relation to their income
There are several student loan forgiveness programs available if you have federal student loans. Most require you to have a certain type of employment and to make eligible payments for a set amount of time.
Under this program, you get loan forgiveness if you work for 10 years at a qualifying organization and make 120 monthly payments. The remaining balance is discharged tax-free, so the savings can be significant.
Some common careers that might qualify for student loan forgiveness include:
- Government employees
- Nonprofit employees
- Teachers
- Doctors
- Nurses
- Lawyers
- AmeriCorps or Peace Corps volunteers
Learn More:
5. Use the debt avalanche or debt snowball method
Best for:
- Borrowers who can afford a larger monthly payment
- Borrowers who want to get out of debt quickly
In some cases, you might need to simply concentrate on paying off your loans as quickly as possible — such as if you have multiple loans and can’t qualify for forgiveness. Here are a couple of strategies that could help:
Debt avalanche method
With the debt avalanche method, you’ll focus on paying off your loan with the highest interest rate first while making the minimum payments on your other loans.
After this loan is paid off, move on to the loan with the next-highest interest rate — continuing until all of your loans are repaid.
If you’re motivated more by small wins, you might consider the debt snowball method instead.
Debt snowball method
With the debt snowball method, you’ll focus on repaying your smallest loan first while making the minimum payments on your other loans.
Once the smallest loan is repaid, move on to the next-smallest loan — continuing until all of your loans are paid off.
But if you’d rather save more money on interest and don’t mind waiting to see your results, you might consider the debt avalanche method instead.
Learn More: Graduated Repayment Plan
How long will it take to pay off $200k?
This will depend on how you approach your repayment. For example, paying off a refinanced loan might take a shorter time than pursuing forgiveness through an IDR plan.
Here’s how long you can expect the various repayment strategies to take as well as some examples of the associated costs:
| Repayment strategy | How long to pay off $200k | Example repayment costs |
|---|---|---|
Federal standard repayment plan| 10 years | If you have a 6.22% interest rate: |
|
Refinancing| Typically 5 to 20 years | (depending on the lender) If you refinance a $200k loan with a 6.22% interest rate with a 10-year term to a 5% interest rate: |
|
| Student loan forgiveness | Depends on forgiveness program (for example, PSLF takes 10 years) | If you have an average gross income of $50,000, an average weighted interest rate of 6.22%, are single, and qualify for PSLF:
|
| Income-driven repayment | 20 to 25 years (depending on the plan) | If you have an average gross income of $50,000, an average weighted interest rate of 6.22%, and are single: IBR:
PAYE:
REPAYE:
ICR:
|
Does student loan debt go away?
Sadly, there’s no magic trick to make your student loan debt simply go away. But one of the options above could help you tackle your loans once and for all — or even have them forgiven.
There are also some circumstances where your federal student loans might be discharged, such as if:
- You’re totally and permanently disabled
- Your school closed while you were enrolled
- You have Perkins Loans and have served for a certain amount of time in an eligible career
So if you have a high student loan balance, don’t worry — you’re definitely not alone.
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.
Keep Reading: Private Student Loan Consolidation
