How To Pay Off $200,000 in Student Loans: Repayment Strategies That Work

Carrying $200,000 or more in student loans is a major financial burden, comparable to taking on a mortgage. Even with a high-paying career, you'll need a clear repayment strategy to manage this level of debt.

Many borrowers with six-figure balances attended expensive degree programs such as medical, dental, or law school. In 2024, 71% of medical students borrowed an average of $212,341, according to the Association of American Medical Colleges (AAMC). Dental students faced even higher costs, graduating with an average debt of $312,700, according to the American Dental Education Association (ADEA).

While a $200,000 balance can feel overwhelming, the right approach can help you take control and pay it down.

Current student loan refinance rates

What is the best repayment plan to pay off $200K?

The best student loan repayment plan depends on your income and long-term goals. With federal student loans, you can choose from several options:

• The Standard Repayment Plan gives you fixed monthly payments over 10 years. It's the fastest way to pay off your debt, but it also comes with the highest monthly cost.
• The Graduated Repayment Plan starts with lower payments that increase every 2 years over the 10-year repayment period. This plan can be a good fit if you expect your income to rise steadily.
• The Extended Repayment Plan allows you to stretch payments over 25 years, either with fixed or graduated amounts. While this reduces your monthly payment, it also means you'll pay much more interest over time.
• An income-driven repayment (IDR) plan bases your monthly payments on your income and family size. After 20 or 25 years (depending on the plan), any remaining balance is forgiven, which can be helpful if your income is lower or unpredictable.

If you have a high income and can afford larger payments, the Standard Plan is usually the most cost-effective way to eliminate $200,000 in debt. But if your income is lower or inconsistent, an IDR plan may be the safer option since it keeps payments affordable and offers eventual loan forgiveness.

“Borrowers that have incomes the same as or below their student loan balance are going to benefit from a PSLF-type program or income-driven repayment plan option,” advises Andrew Paulson, certified student loan professional (CSLP) and co-founder of StudentLoanAdvice.com.

Private student loans work differently. You don't have the same flexibility to switch repayment plans. To change your loan terms, you'll typically need to refinance with a private lender.

Refinance when it makes sense

Refinancing can be an effective way to manage $200,000 in student loans, especially if you have private loans or a high income. The main benefit is lowering your interest rate, which reduces the total cost of your debt and helps you pay it off faster.

If you have federal student loans, refinancing means giving up key protections such as income-driven repayment, forgiveness pathways, and options for forbearance and deferment. For that reason, refinancing federal loans is usually best only if you're in a high-paying, stable career and don't plan to rely on those benefits.

Private student loans don't come with the same federal perks, so refinancing can be a smart move if you qualify for better terms.

“If you're in a high-paying career that's not eligible for Public Service Loan Forgiveness and you have a stable income, refinancing for a better interest rate and paying off your loans aggressively can make sense,” explains Paulson.

Consider an income-driven repayment plan

Your income compared to your federal student loan balance plays a key role in whether an income-driven repayment (IDR) plan is the right fit. One important feature of these plans is that you must recertify your income every year.

“The key here is to understand your income growth over time so you can predict the increase in payments when you annually recertify your income,” says Melissa Maguire, a student debt consultant for the nonprofit Consumer Debt Counselors, and founding partner of Student Debt Solutions.

Although IDR plans don't have an income cap to qualify, your payments will rise as your income increases. For high earners, those payments may eventually equal or even exceed the cost of the 10-year Standard Repayment Plan. In that case, IDR may not be helpful, unless you're pursuing Public Service Loan Forgiveness (PSLF).

Changes are coming to federal repayment plans

A new budget reconciliation bill, signed into law on July 4, 2025, is reshaping how federal student loan repayment works. The law creates the Repayment Assistance Plan (RAP) and modifies the Standard Repayment Plan.

As part of these updates, three existing income-driven repayment plans — ICR, PAYE, and SAVE — will be phased out. New borrowers will no longer be able to enroll in these plans after July 1, 2026, and existing borrowers must switch to a new plan by July 1, 2028. If you don't select a new plan, you'll automatically be placed in RAP.

Learn More: How Trump's 'Big Beautiful Bill' Reshapes Federal Student Aid

Look into forgiveness or repayment assistance

If you work for a qualifying public service employer in the nonprofit or government sector, you may be eligible for Public Service Loan Forgiveness (PSLF). This program forgives your remaining federal student loan balance after you make 120 qualifying payments, or about 10 years. For borrowers in the right career path, PSLF can be one of the most effective ways to manage $200,000 in debt.

To qualify, you must have federal Direct Loans, be enrolled in an income-driven repayment plan, and recertify your income and family size each year.

In addition to PSLF, certain professions — particularly in medicine and health care — offer Loan Repayment Assistance Programs (LRAPs). These programs are often funded by state governments, hospitals, or professional associations and can help cover a portion of your student loans in exchange for working in high-need areas or shortage specialties. For doctors, dentists, and other health professionals with large balances, LRAPs can significantly reduce the amount you owe.

Best strategies for aggressive repayment

If you have a high-paying job and don't qualify for forgiveness, accelerating repayment to pay off your loans more quickly may make better financial sense. Here are several strategies to consider.

Use the avalanche vs. snowball method

• Avalanche method: This method prioritizes paying off your highest-interest loan first while making the minimum payment on your other loans. Once that loan is repaid, you move on to the next high-interest loan.
• Snowball method: You prioritize your smallest loan first while paying the minimum on your other loans, and then move on to your next smallest. This method builds motivational momentum.

If you want to pay less interest over time, the avalanche method is often the better choice.

Learn More: Which Student Loan Should I Pay Off First?

Make biweekly payments

Splitting your monthly payment into two installments — one every two weeks — can help you pay off your loans faster. Since there are 52 weeks in a year, this schedule results in 26 half-payments, which adds up to 13 full payments instead of 12. That extra payment each year goes directly toward your principal balance, shaving interest that accrues over time.

Use windfalls to cut your balance faster

A windfall is any unexpected or irregular sum of money, such as a tax refund, work bonus, or inheritance. Maguire says this approach can work well for borrowers who don't want to bother with extra monthly payments.

“You can even start a student loan savings account and plan a lump-sum payment quarterly or annually,” recommends Maguire.

Whichever approach you choose, confirm with your loan servicer that the extra payment is applied to your loan principal rather than toward a future bill. This ensures you actually reduce your balance and save on interest.

Budgeting and income tracking

Tracking your spending and sticking to a budget can help you find expenses to cut and redirect more money toward student loan payments. However, be careful not to sacrifice your retirement savings in the process.

“Contributing to your qualified retirement accounts reduces your AGI,” explains Paulson.

Lowering your adjusted gross income (AGI) has two benefits: It can reduce the amount of taxes you owe, and if you're on an income-driven repayment plan, it can also lower your monthly student loan payment since those plans are based on your income.

Learn More: Should You Pay Off Student Loans or Invest?

Example payoff timelines for $200K in loans

Here's a sample of three payoff strategies, ranging from a standard 10-year plan to an aggressive monthly payment. Keep in mind, each year of borrowing will yield a slightly different interest rate.