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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.
Here are five ways to make paying off $50,000 in student loans more manageable:
- Refinance your student loans
- Find a cosigner to refinance your $50,000 loan
- Explore your forgiveness options
- Explore income-driven repayment plans
- Use the debt avalanche method
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
For example, if you refinance with a Credible partner lender, you might have a term ranging from five to 20 years.
If you refinance your student loans, your old loans are paid off with a new one. Refinancing might get you a lower 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.
If you decide to refinance, it’s a good idea to consider how much the new loan will cost you over time — and how much you might save. 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.
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 — the average student loan interest rate for 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.
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
Keep in mind that if you have poor credit, you might not qualify for longer repayment terms.
Generally, a credit score of 670 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.
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.
| Lender | Fixed rates from (APR) | Variable rates from (APR) | Min. credit score |
|---|---|---|---|
 | 4.54%+ | N/A | Does not disclose |
 | 2.95%+ | 1.89%+ | 690 |
 | 2.97%+¹ | 2.24%+¹ | Does not disclose |
 | 3.34%+2 | 3.24%+2 | Does not disclose |
 | 2.59%+ | 2.54%+ | 680 |
 | 2.58%+3 | 2.39%+3 | 680 |
 | 3.47%+4 | 2.46%+4 | 670 |
 | 2.80%+5 | N/A | 670 |
 | 3.05%+ | 3.05%+ | 670 |
 | 2.89%+ | 2.15%+ | 670 |
 | 3.19%+ | N/A | 680 |
 | 2.99%+6 | 3.10%+6 | Does not disclose |
| Ready to see how much you can save? |
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All APRs reflect autopay and loyalty discounts where available | 1Citizens Disclosures | 2College Ave Disclosures | 3 ELFI Disclosures | 4INvestEd Disclosures | 5Iowa Student Loan Disclosures | 6SoFi Disclosures |
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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
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 several student loan forgiveness programs available to borrowers with federal student loans. Many of these programs are geared toward certain professions — such as teachers, nurses, and lawyers.
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.
See Your Refinancing Options
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4. Explore income-driven repayment plans
Best for:
- Borrowers with federal student loans
- Borrowers struggling to keep up with monthly payments
If you can’t keep up with your federal student loan payments, switching from the standard repayment plan to 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.
Learn More: PAYE vs. REPAYE
5. Use the debt avalanche method
Best for:
- Borrowers who want to pay off their loans faster
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.
If you’re motivated by seeing small wins, you could consider the debt snowball method instead.
If you’re wondering how long it’ll take to pay off your student loans, enter your current loan information into the calculator below to find out. Use the slider to see how increasing your payments can change the payoff date.
Enter loan information
If you increase your payments by $ monthly on your $ loan at %, you will pay $ a month and pay off your loan by Jan 2021.
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.
Keep Reading: Extended Graduated Repayment Plan
