What Is the Monthly Payment on a $30,000 Student Loan?

Taking out $30,000 in student loans can help you cover the cost of a four-year education. With a 6.39% interest rate and a 10-year term, the average federal student loan borrower would pay about $339 per month. A private student loan borrower with a credit score of 720 or higher would pay about $353. 

Keep in mind that rates on federal student loans change annually, and private student loan rates vary among borrowers based on credit score, lender, and other factors. That makes estimating payments precisely a challenge. 

Here’s what you need to know about how much a $30,000 student loan monthly payment would be.

Current student loan refinance rates

What’s the average monthly payment on a $30,000 student loan?

The average monthly payment on a $30,000 student loan depends on what type of loan you’re taking out, when you took it out, your credit score, and other factors. The repayment term and repayment start date on the loan (or loans) also play a role. 

At current average rates and for those with the best credit scores, the typical $30,000 student loan payment is between $339 and $353 per month.

How a student loan’s term and interest rate affect your payment

Two of the biggest factors in determining a student loan’s monthly payment are the interest rate it comes with and the repayment term — or how long you have to pay off the loan. 

With federal student loans, interest rates are set annually by Congress, but with private student loans, your rate depends largely on your lender and credit score.

“Students can achieve a lower interest rate by having a strong credit score and applying with a creditworthy cosigner,” says Steve Winnie, chief operating officer of Monogram LLC and Abe Student Loans.

As far as repayment terms go, those can vary on both private and federal student loans — usually between 10 and 25 years. Longer terms result in lower monthly payments but increase the amount you pay in total interest. Shorter terms mean higher payments and less in long-term interest.

“A higher interest rate yields higher monthly payments, and a lower interest rate yields lower monthly payments, but the repayment term has a much greater impact on your monthly payments,” says Mark Kantrowitz, a financial aid expert and author of “How To Appeal for More College Financial Aid.” 

“Doubling your repayment term from 10 years to 20 years may cut your payment roughly in half, but at a cost of more than doubling the total interest paid over the life of the loan,” he adds.

Federal loan repayment options for $30,000

One of the biggest benefits of federal student loans is that they come with many repayment options. While the standard repayment plan is 10 years, other plans go as long as 25 years, allow you to base your monthly payment on your income, and, in some cases, even have your remaining federal loan debt forgiven. 

The full scope of repayment options includes:

• Standard fixed payments spread out over 10 years
• Graduated payments, which allow for gradually increasing payments over 10 years
• Extended fixed or graduated payments over 25 years
• Income-driven repayment plans, which come with payments equal to 10% to 20% of your monthly discretionary income, depending on the plan

If you enter public service and make at least 120 qualifying monthly payments on an eligible plan, you may be able to have your remaining student debt forgiven entirely.

Private $30,000 student loan options and payment estimates 

With private student loans, you can typically choose a term between five and 20 years or more, with longer terms equating to lower payments and shorter terms requiring bigger ones.

Lenders will often offer additional options, like making interest-only or small, flat-fee payments while you’re in school, deferring payments until graduation, or making full principal and interest payments from the start. The plan you choose can have a huge impact on your payments after graduation and your long-term interest costs. It can also affect the initial interest rates you qualify for. 

“Many lenders will offer lower interest rates when borrowers elect to make principal and interest payments or interest-only payments versus deferring while the student is in school,” says Stacey MacPhetres, senior director of education finance for EdAssist by Bright Horizons. 

Since there are so many interest rate and repayment variables, it’s difficult to estimate what payment you might have with a private student loan. Here’s what a monthly payment might look like based on different terms and rates:

How to reduce your monthly payment or total interest on private student loans

Aside from choosing the right repayment term, there are a few additional steps you can take to reduce your monthly payment and interest. 

First, you can improve your credit score. The higher your score, the better your interest rate and the less you’ll pay. You can also bring in a cosigner with a good credit score to help your case.

“Because private loans are credit-based, students applying with the most creditworthy cosigners should result in the most favorable interest rates and terms,” MacPhetres says. 

Choosing to make interest-only or flat-fee payments during school can help reduce your payments and long-term interest, too, and you can also get discounts for setting up autopay or making payments on time.

“Some lenders also offer rate reductions for a set number of consecutive on-time payments,” Winnie says. “Additionally, certain lenders may offer a one-time reduction of the loan’s principal balance once the student notifies them of graduation.”

Finally, shop around between lenders and compare rates, loans, and repayment options. 

“Apply for multiple private loan programs, and do so within a short period of time  — usually 15 to 45 days,” says MacPhetres. “This will enable you to, in essence, rate shop, with only one credit inquiry on your credit report.”

How to reduce your monthly payment or total interest on federal student loans

Since federal student loan rates are set by Congress, you don’t have as many options if you’re looking to reduce your costs. Your credit score won’t matter, and shopping around for your lender isn’t possible.

You can, however, snag a lower payment by getting on an income-driven repayment plan. While this can increase the total interest you pay over time, it’ll give you a break on your monthly payments when you need it. 

You could also consolidate your loans using a federal consolidation loan or refinance them into a private student loan. Just keep in mind that doing the latter will mean losing all the benefits that come with federal loans, including income-driven repayment plans and potential loan forgiveness.