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Student loan repayment terms can vary from 5 years to 25+ years depending on the principal amount, monthly payment, and interest rate. Your repayment term determines your monthly payment as well as the amount of overall interest you pay on the loan. There are benefits and drawbacks to both repayment terms but the basic breakdown is displayed in the chart below.

student loan repayment short vs long

Interest rates are typically higher for longer repayment terms, but monthly payments are higher for shorter terms.

Take a look at a sample set of repayment options offered by one of our lenders. The monthly payment may be higher for a 5-year loan, but the borrower would save almost $10,000 in interest.

student loan repayment years

Your current financial situation determines which is the best option, as it depends on how much you are able to spend on monthly loan payments. Credible’s lenders offer both short term and long term repayment options for federal and private loan refinancing.

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