How To Pay Off $50,000 in Student Loans

Paying off $50,000 in student loan debt isn't easy, but it's possible with the right strategy and mindset. As of mid-2024, 4.3 million borrowers owed between $40,000 and $59,999 in federal student loans, according to the College Board.

Let's look at some strategies to pay off $50K in student loans and achieve your financial objectives along the way.

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What does $50K in student loan debt mean for you?

Having $50,000 in student loan debt can be a tremendous financial burden. Depending on your interest rate and the types of loans you have, the payments can amount to a very large portion of your monthly budget. Managing this level of student loan debt can affect your ability to buy a house, save, or invest money for retirement.

“​​Student loan debt has become a serious issue for many Americans,” says William Bevins, a certified financial planner and private wealth manager at Cypress Capital. “I see more borrowers in their 40s and 50s who still carry substantial amounts of student loan debt.”

That's why it's important to find a repayment strategy that allows you to pay off your loans while pursuing other financial goals. The right plan will help you understand which loans to tackle first.

Federal repayment options for $50K in student loans

If you took out federal loans, there are a variety of repayment plans for you to choose from. Here's an overview of the federal student loan repayment options the Department of Education offers so you can determine which is best for your situation:

Income-driven repayment plans

Income-driven repayment (IDR) plans are determined by your monthly income and family size. After completing your loan repayment term, you're eligible to have your remaining loans forgiven.

There are four different plans you can pick from:

• Saving on a Valuable Education (SAVE) Plan: This payment plan is available to borrowers with Direct Subsidized, Unsubsidized, and PLUS Loans made to students. This payment plan sets your monthly payment at 5% to 10% of your discretionary income, depending on whether you have undergraduate loans or a mix of undergraduate and graduate loans. (Note that as of January 2025, the SAVE Plan was on hold amid legal challenges, and existing participants' loans were in interest-free forbearance.)
• Pay As You Earn (PAYE) Repayment Plan: This plan is available to borrowers who took out loans on or after Oct. 1, 2007, and received a Direct Loan disbursement on or after Oct. 1, 2011. It sets your monthly payments at 10% of your discretionary income, and you'll never pay more than you would with the standard 10-year repayment plan.
• Income-Based Repayment (IBR) Plan: The IBR plan sets your monthly payments at either 10% or 15% of your discretionary income, depending on when you received your initial loans. However, you'll never pay more than you would pay on the standard 10-year repayment plan. 
• Income-Contingent Repayment Plan: This plan is available to borrowers who took out Direct Subsidized and Unsubsidized Loans, Direct PLUS Loans made to students, and Direct Consolidation Loans, including those that repaid parent PLUS loans. Your monthly payment is either 20% of your discretionary income or the amount you'd pay on a 12-year fixed repayment plan, whichever is less.

Fixed repayment plans

After you graduate from college, you're automatically enrolled in the 10-year Standard Repayment Plan, unless you choose something different. It's a fixed monthly repayment plan that ensures your loans are paid off in 10 years, or within 10 to 30 years for consolidation loans.

You can also opt for the Graduated Repayment Plan. With this 10-year plan, your payments start lower and then increase every two years. And if you have more than $30,000 in outstanding Direct Loans or FFEL program loans, you can qualify for the Extended Repayment Plan. On this plan, you'll have fixed or graduated monthly payments, and your loans will be repaid in 25 years.

The right repayment plan depends on your financial goals and priorities. The Standard Repayment Plan is best for borrowers who want to minimize interest costs and pay off their loans faster. However, the monthly payments may be too high because of the shorter repayment term. An IDR plan is a good option for borrowers who want low monthly payments and the option for eventual loan forgiveness.

“I recommend that borrowers review each plan, check their eligibility, or visit the Federal Student Aid website for assistance,” says Bevins. “Additionally, borrowers can consult their personal financial adviser for guidance.”

Strategies to pay off $50,000 in student loans faster

“Paying off $50,000 in student loans can seem daunting, but with a clear plan, it's doable,” says Antwyne DeLonde, CEO of VisionX and a former financial adviser. If you have multiple loans, you can use either the debt avalanche or the debt snowball method to pay them off faster.

The debt avalanche method focuses on paying off the loan with the highest interest rate first. You make the minimum payments on all your loans and dedicate the rest of your funds to your highest-interest debt. Repeat this process with your other loans until they're all paid off.

The debt snowball method focuses on paying off your loans from the smallest to the largest, regardless of the interest rate. You make the minimum payments on all your loans and devote the rest of your available money to the smallest balance debt.

There are advantages and disadvantages to the debt snowball vs. avalanche methods. The debt avalanche method can help you save on interest, but it can take longer for you to see any progress. The debt snowball method allows you to get quicker wins, but it could cost you more over the life of the loan.

Bevins also recommends trying to make additional payments toward the principal wherever possible. “Many clients choose to apply their annual bonuses toward paying down loan balances instead of spending on a trip or a new car,” he explains.

Budgeting tips for managing student loan repayment

Managing your monthly student loan payments starts by setting a realistic budget. DeLonde recommends implementing the 50/30/20 rule — 50% of your budget is allocated toward your needs, 30% toward discretionary spending, and 20% toward debt and savings. “Automating your student loan payments can help you avoid missing deadlines,” he advises.

“When I work with clients who have student loan debt, I return to the fundamentals,” Bevins says. “We review their annual budgets and identify opportunities to reduce expenses. The extra funds we generate each month are allocated toward paying down student loans.”

Refinancing student loans to save money

Refinancing can be a great way to save money on your student loans if you can get a lower interest rate than what you currently have. You can potentially save money on interest over the life of the loan and may even be able to reduce your monthly payments. It also simplifies repayment — if you have multiple student loans, you can consolidate them into a single loan with one monthly payment.

However, you'll need a good-to-excellent credit score to qualify for the best rates and terms on your refinancing loan. If you don't, applying with a cosigner who has strong credit can improve your odds of qualifying.

DeLonde adds that borrowers should think carefully before refinancing federal student loans. “Refinancing federal loans turns them into private loans, so you lose benefits like forgiveness programs,” he explains.