How To Pay Off $300,000 in Student Loans

Credible takeaways

Refinancing can help you pay off $300K in student loans faster if you qualify for a lower interest rate or choose a shorter repayment term.
If you have federal student loans, switching to an income-driven repayment plan can help make your payments more manageable, and you can qualify for loan forgiveness if you meet the requirements.
Repayment strategies like the debt avalanche or debt snowball can help you stay focused on tackling your debt and create small wins along the way.

As of March 2024, only 2% of borrowers owed $200,000 or more in federal student loans, though this group holds 18% of the outstanding federal student loan debt, according to the College Board. The cost of college continues to rise, and if you're taking out loans for a medical degree or law school, for example, student loans can add up quickly.

While paying down a high balance can be overwhelming and time-consuming, several strategies can help make the process easier.

1. Refinance your student loans

Student loan refinancing is the process of paying off your old student loans with a new loan. Depending on your credit, you might get a lower interest rate through refinancing — this could save you money on interest and potentially help you pay off your loan faster.

Or you could opt to extend your repayment term through refinancing to reduce your monthly payments and lessen the strain on your budget. Remember that choosing a longer term means paying more interest over time.

Expert insight: “Before refinancing federal student loans, I recommend making sure you won't need income-driven repayment or loan forgiveness now or in the future. Refinancing makes your loans private, and you'll lose access to those federal benefits for good.”

— Renee Fleck, Student Loans Editor, Credible

If you refinance your student loans, consider as many lenders as possible. This way, you can find the right loan for your situation.

Here are Credible's partners that offer refinancing for student loan balances of $300,000:

2. Consider using a cosigner when refinancing

You'll typically need good credit to qualify for refinancing — a good credit score is a FICO score of 670 or higher. Several lenders offer refinancing for bad credit, but these loans usually have higher interest rates than good credit loans.

If you're struggling to get approved, consider applying with a cosigner who has strong credit. Around 80% of student loan refinancing applications with a cosigner were approved in 2024, according to Credible marketplace data. Even if you don't need a cosigner to qualify, having one could get you a lower interest rate than you'd get on your own.

Tip

A cosigner can be anyone with good credit — such as a parent, other relative, or trusted friend — who is willing to share responsibility for the refinanced loan. Keep in mind that this means they’ll be on the hook if you can’t make your payments.

Learn More: Best Student Refinance Companies

3. Explore income-driven repayment plans

If you have federal student loans, you might consider signing up for an income-driven repayment (IDR) plan. On an IDR plan, your payments will be based on your income — 5% to 20% of your discretionary income, depending on the plan. Additionally, you could have any remaining balance forgiven after 10 to 25 years, depending on the plan.

Here's how the four main IDR plans compare to a few other federal repayment plan options:

Repayment plan	Who’s eligible?	Monthly payment	Repayment terms	Eligible for loan forgiveness?
Standard Repayment Plan	Any borrower with Direct or FFEL loans	Amount when payments are spread equally over 10 years (usually $50 min.)	10 years	Yes
Graduated Repayment Plan	Any borrower with Direct or FFEL loans	Depends on loan amount (payments start low; increase every 2 years)	10 years	No
Extended Repayment Plan	Any borrower with more than $30,000 in Direct or FFEL Loans	Fixed: Spread evenly over up to 25 years Graduated: Depends on loan amount (start low; increase every 2 years)	Up to 25 years	No
Income-Based Repayment (IBR)	Borrowers with partial financial hardship (no Parent PLUS loans)	Loans after July 1, 2014: 10% of discretionary income (never more than 10-year plan) Loans before July 1, 2014: 15% of discretionary income (never more than 10-year plan)	Loans after July 1, 2014: 20 years Loans before July 1, 2014: 25 years	Yes
Pay As You Earn (PAYE)	Must have partial financial hardship Must have borrowed on or after Oct. 1, 2007	10% of discretionary income (never more than 10-year plan)	20 years	Yes
Saving on a Valuable Education	Any borrower (no Parent PLUS loans)	5% of discretionary income (undergrad loans only); Weighted average between 5% and 10% of discretionary income (undergrad and grad loans)	As soon as 10 years for original loans of $12,000 or less	Yes
Income Contingent Repayment (ICR)	Any borrower (Parent PLUS loans must be consolidated)	20% of discretionary income (or income-adjusted payment on 12-year plan)	25 years	Yes

Check Out: PAYE vs. SAVE

4. Pursue loan forgiveness for federal student loans

Several student loan forgiveness programs are available if you have federal student loans. Most of these require you to work in a certain field and make qualifying payments for a specific period of time.

If you have federal loans and work for a nonprofit or government organization, you might be eligible for Public Service Loan Forgiveness (PSLF). Under this program, you'll need to make qualifying payments for 10 years to have your loans forgiven.

Some occupations that might qualify for a forgiveness program include:

Dentists
Doctors
Lawyers
Nurses
Pharmacists
Teachers

Keep in mind

Unfortunately, private student loan forgiveness doesn’t exist. However, there are other options that could help you manage your private loans more easily — such as refinancing.

5. Utilize the debt avalanche or debt snowball method

An infographic explaining debt payoffs method

If you have multiple loans and don't qualify for forgiveness or refinancing, here are a couple of strategies that could help:

Debt avalanche method

With the debt avalanche method, you’ll concentrate on paying off the loan with the highest interest rate first while making minimum payments on your other loans.

After you pay off the highest-interest loan, move on to the loan with the next-highest rate. You’ll continue with this until all of your loans are paid off.

Good to know

While the debt avalanche method can be a good option to save money on interest, it can also take a while to see any results.

If you’re more motivated by small wins, you might consider the debt snowball method instead.

Debt snowball method

With the debt snowball method, you’ll focus on paying off your next-smallest loan first while making the minimum payments on your other loans.

After this loan is paid off, move on to the next smallest loan — and continue until all of your loans are paid off.

Tip

The debt snowball method generally offers quicker results. But if you’d rather save more money on interest and don’t mind waiting to see your savings, the debt avalanche might be a better fit.

If you’re thinking about filing for bankruptcy, be sure to consult with a lawyer so you can make the best decision for your financial situation.

Are student loans forgiven after 20 years?

This depends on the type of student loans you have.

If you have federal student loans, you could have your loans forgiven after 10 to 25 years if you sign up for an IDR plan. Or you might be able to have them partially or fully discharged even sooner if you qualify for PSLF or another federal forgiveness program.
If you have private student loans, you won’t be eligible for federal forgiveness programs. But you might be able to save money on interest and even possibly shorten your repayment time through refinancing.

Tip

Bankruptcy will severely damage your credit and make it hard to access new loans in the future. Because of this, it’s best to treat bankruptcy as a last resort after all other repayment strategies have been exhausted.

Do children inherit student debt?

This depends on your loan type:

Federal students are discharged upon the death of the borrower. If you have parent PLUS loans, they’ll be discharged upon the death of either the parent or the student who benefited from the loan.
Private student loans are often discharged like federal loans — however, this is up to the discretion of the lender. If your lender doesn’t offer a death discharge, then your loans will be considered part of your estate and will be paid off by your assets.

Keep Reading: How Often Can You Refinance Student Loans?

FAQ

How long does it take to pay off $300k student loans?

Open

This will depend on the type of student loans you have and the repayment terms you choose.

Federal student loans: It will generally take 10 to 25 years to pay off federal loans, depending on the repayment plan. You could also opt to consolidate your loans into a Direct Consolidation Loan — this will let you extend your term up to 30 years.
Private student loans: These loans usually come with repayment terms ranging from 5 to 20 years, depending on the lender.

Can I file for bankruptcy to eliminate my student loan debt?

Open

Yes, you can file bankruptcy for student loan debt. But remember that having your student loans discharged could be quite difficult. To have your loans discharged, you’ll have to prove to the court that repaying them would cause an undue hardship on you and your dependents.

If the court decides in your favor, your loans might be:

Fully discharged
Partially discharged with you responsible for the remainder of the balance
Adjusted with different terms to make repayment easier (such as a lower interest rate)

Can I use student loan forgiveness to help pay off $300K in student loans?

Open

If you have federal student loans, you can have your remaining student loan debt forgiven after making payments under an income-driven repayment plan when your repayment term is complete. You might also qualify for federal student loan forgiveness programs like Public Service Loan Forgiveness or Teacher Loan Forgiveness if you meet the eligibility requirements.

Should I refinance to pay off $300,000 in student loans?

Open

Refinancing could make sense if you have private student loans and are able to qualify for a lower interest rate and better terms. If you have federal student loans, it's generally not a good idea to refinance them since you'll forfeit federal benefits and protections like access to income-driven repayment plans and loan forgiveness.

Meet the expert:

Dori Zinn

Twitter

Dori Zinn is a personal finance journalist with over 10 years of experience. Her work has been featured by Huffington Post, Wirecutter, Bankrate, and CBS News.