If you’re a recent college graduate with a mountain of student loan debt — say $100,000 or more — paying off such a large amount could be a major struggle.
For example, if you’re making payments on federal student loans under the standard 10-year repayment plan, your minimum monthly payment might be quite daunting. Assuming a 7% interest rate, you’re looking at payments of over $1,000 per month.
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. | ||
But don’t worry — you have several potential ways to make your student loans more manageable.
1. Refinance your student loans
Best for:
- Borrowers with high interest rates
- Borrowers with high monthly payments
- Borrowers who want to combine multiple loans
How long will it take to pay off $100K: If you refinance your student loans, you’ll likely have a few different repayment terms to choose from — which will affect how long paying off your loan will take.
For example, if you refinance with one of Credible’s partner lenders, you’ll have a term ranging from five to 20 years, depending on the lender.
Keep in mind that a shorter repayment term comes with a higher monthly payment, while a longer repayment term could reduce your payment but would mean paying more in interest over time.
Student loan refinancing is a great method for saving money on your student loans. If you have $100,000 in student loans — or more — you probably have a mix of federal loans and private loans. With refinancing, you can combine all your loans into one new loan with a single payment.
You might qualify for a lower interest rate on your new student loan, which could save you money over the life of your loan. Or if you choose to extend your repayment term, you could reduce your payment — lessening the strain on your monthly budget.
Keep in mind: If you refinance federal student loans, you’ll lose your federal benefits and protections, including access to income-driven repayment plans and student loan forgiveness programs.
If your federal student loans already have a decent interest rate and you’re able to manage multiple federal loans each month, it might be a good idea to refinance only your private student loans.
Use our student loan refinancing calculator below to see how much you can save by refinancing your student loans:
Learn More: Standard Repayment Plan
2. Add a cosigner with good credit
Best for:
- Borrowers with fair or average credit
- Borrowers who can qualify for a lower interest rate with a cosigner
How long will it take to pay off $100K: Your payoff period with a cosigner will depend on the loan terms you choose.
Keep in mind that lenders might not offer you longer repayment terms if you have poor credit.
The more you demonstrate to lenders that you’re not a risky borrower, the more comfortable they’ll likely feel about lending to you. Sometimes adding a cosigner can lower your interest rate if you choose to refinance your student loans, though they also take on responsibility for repayment if you don’t pay as agreed.
A cosigner doesn’t need to be a parent or relative either. To benefit your financial situation, a cosigner just needs to have good credit and be willing to cosign for your loan.
Tip: Even if you don’t need a cosigner to qualify, having one might also get you a lower interest rate than you’d get on your own.
If you decide to refinance — with or without a cosigner — 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 our partner lenders in the table below in two minutes.
Credible rating
Fixed (APR)
4.90% -
Loan Amounts
$10,000 - $400,000
Min. Credit Score
720
on Credible’s website
View Details
Credible rating
Fixed (APR)
7.00% -
Loan Amounts
$10,000 - $750,000
Min. Credit Score
680
on Credible’s website
View Details
Credible rating
Fixed (APR)
5.48% -
Loan Amounts
$10,000 - $250,000
Min. Credit Score
680
on Credible’s website
View Details
Credible rating
Fixed (APR)
6.00% -
Loan Amounts
$7,500 - $200,000
Min. Credit Score
700
on Credible’s website
View Details
Credible rating
Fixed (APR)
5.90% -
Loan Amounts
$5,000 - $250,000
Min. Credit Score
670
on Credible’s website
View Details
Credible rating
Fixed (APR)
6.20% -
Loan Amounts
$10,000 up to the total amount
Min. Credit Score
670
on Credible’s website
View Details
Credible rating
Fixed (APR)
5.79% -
Loan Amounts
$7,500 - $250,000
Min. Credit Score
680
on Credible’s website
View Details
Ready to see how much you can save?
All APRs reflect autopay and loyalty discounts where available | LightStream disclosure | SoFi Disclosures | Read more about Rates and Terms
Find Out: How to Pay off Student Loans in 5 Years
3. Pay off the loan with the highest interest rate first
Best for:
- Borrowers who can afford to make additional payments
- Borrowers who want to get out of debt quickly
How long will it take to pay off $100K: If you have multiple student loans and can make extra payments, paying off your debt with the highest interest rate first could save you money while shortening your repayment period.
How long it will take to pay off your debt will depend on your repayment term and many additional payments you can afford to make.
You’ll save the most money in interest over the life of your loans if you focus on paying the loan with the highest interest rate first. You should continue to make minimum payments on all your loans, but make bigger payments toward the highest-interest loan.
Then, when that loan is paid off, you can put that money toward the loan with the next-highest interest rate — and so on until all your loans are paid off. This is commonly known as the debt avalanche, a twist on the popular debt snowball method to pay off debt.
Keep in mind: While the debt avalanche method saves you money in interest charges over time, it can take longer to see the results.
If you’re motivated by small wins, the debt snowball method could be another option.
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.
Check Out: Graduated Repayment Plan
4. See if you’re eligible for an income-driven repayment plan
Best for:
- Borrowers with high federal student loan payments
- Borrowers with relatively low incomes compared to their minimum federal loan payments
How long will it take to pay off $100K: If you sign up for an income-driven repayment (IDR) plan, your payment will be based on your monthly income. This could significantly lower your monthly payment but will also extend your repayment period.
However, if you keep up with your payments on an IDR plan, you could have the remainder of your balance forgiven after 20 to 25 years — depending on the plan you choose.
IDR plans are another option that many federal borrowers can take advantage of. In general, an IDR plan could be a good choice if you’re struggling to make your student loan payments.
The U.S. Department of Education offers four IDR plans to choose from:
- Income-Based Repayment (IBR)
- Pay As You Earn (PAYE)
- Revised Pay As You Earn (REPAYE)
- Income-Contingent Repayment (ICR)
Learn More: PAYE vs. REPAYE
5. See if you’re eligible for student loan forgiveness
Best for:
- Borrowers who work for an eligible government or not-for-profit organization
- Borrowers with high payments for federal student loans relative to income
How long will it take to pay off $100K: The time it'll take to have your loans discharged under a student loan forgiveness program will depend on the program itself.
For example, if you’re eligible for Teacher Loan Forgiveness, you could have a portion of your loans discharged after five years. Or if you pursue forgiveness under an IDR plan, you could have your loans forgiven after 20 to 25 years, depending on the plan.
Several student loan forgiveness programs are available for federal student loans. Many of these programs are geared toward borrowers who work in certain professions — such as teachers, doctors, and lawyers.
If you work full-time for the government or in any public service job, for example, you might be eligible for Public Service Loan Forgiveness (PSLF). To apply for PSLF, you’ll have to make 120 qualifying payments over 10 years, after which you could have your remaining student loan balance forgiven.
Keep in mind: Unfortunately, private student loan forgiveness isn’t available.
But other options could help you pay off private student loans more easily and potentially save money along the way, such as refinancing.
If you decide to refinance your private student loans, remember to shop around and compare as many lenders as you can. This way, you can find a loan that fits your needs.
This is easy with Credible — you can compare your prequalified rates from multiple lenders in two minutes.
Check Out: U.S. Student Loan Debt Statistics
6. Increase your income
Best for:
- Borrowers who can’t qualify for a student loan refinance or don’t have a cosigner to help them qualify
- Borrowers with private student loans who aren’t eligible to enroll in a federal student loan IDR plan
How long will it take to pay off $100K: The time it’ll take to pay off your student loan debt with an income boost will depend on how much additional money you’re able to bring in each month.
When it comes to refinancing your student loans, there may be only so much you can do. Maybe you’ve already received the lowest interest rate possible for your situation, or maybe you aren’t eligible for a refinance because you don’t have a cosigner or an established credit history. If you’ve been at your current job for a while, consider asking your manager for a raise. If this isn’t possible, it may be worth exploring other job opportunities with a salary that better meets your needs. You could also take on a side hustle, like driving for a rideshare company, delivering groceries, or dog walking. Applying any extra income you have toward your monthly payments will help you chip away at your student loan debt.
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