How To Pay Off $150,000 in Student Loans: 6 Smart Strategies

After years of painstaking studying and exams, student borrowers have another hard-hitting reality to face after leaving school: repaying student loan debt.

A 2024 survey by the American Bar Association's Young Lawyers Division revealed that 78% of student loan borrowers with $100,001 to $200,000 in debt said it made them stressed or anxious, and 49% said it caused them to feel depressed or hopeless.

Whether you're repaying $30,000 in student debt or paying off six figures in student loans, the burden can feel insurmountable. Fortunately, there are ways forward that can offer relief. If you're managing $150,000 in student loan debt, here are some student loan repayment tips to explore.

Current student loan refinance rates

What's the challenge of paying off $150,000 in student loans?

Amassing student loan debt in the six-figure range can happen if you attended a private school or pursued a professional career that required an advanced degree. Examples of programs that can lead to significant student debt include MBAs, law school, and medical and dental school. For some borrowers, enrolling in a prestigious school or pursuing a traditionally high-paying profession might feel like a catch-22 due to student loan debt.

Additionally, interest is charged on the remaining unpaid loan balance over time. The more student debt you have, the more interest accumulates.

JW Harris, a certified financial planner (CFP) and financial therapist, helps student borrowers understand the numbers behind their repayment strategy and come to terms with the challenges they face.

“With six-figure student loan balances, the first step isn't just running numbers — it's creating clarity around values, goals, and emotional triggers,” says Harris.

“Many borrowers feel shame, anxiety, or paralysis with $150,000 in debt, and that emotional weight can lead to poor decisions or inaction,” he adds. “I guide clients to replace 'I'll never get out of this' with a values-driven plan they can sustain.”

Should you refinance $150,000 in student loans?

One approach to paying off six figures in student debt is refinancing your student loans. The goal is to reduce your interest rate on the debt; this lowers your monthly payment and the total amount you'd pay over the loan term.

With refinancing, a private student loan lender pays off one or more existing private or federal student loans on your behalf. When your original loans are paid in full, the lender then creates a new refinanced student loan for the total amount it covered, at a new rate with new repayment terms.

A caveat to refinancing federal student loans is that the refinanced debt will no longer be eligible for valuable federal benefits and programs, including interest subsidies, income-driven repayment, and loan forgiveness.

The requirements to qualify for student loan refinancing vary between lenders. Generally, a good to excellent credit score is needed to qualify for the best rates available, in addition to a steady income.

Can income-driven repayment help with high student loan balances?

For federal student loan borrowers with $150,000 in education debt, an income-driven repayment (IDR) plan might offer relief in terms of monthly payments. Currently, there are four IDR plans:

• Income-Based Repayment (IBR)
• Income-Contingent Repayment (ICR)
• Pay As You Earn (PAYE)
• Saving on a Valuable Education (SAVE)

All IDR plans set monthly payments based on borrowers' discretionary income and family size. Depending on the plan you enroll in, your payment might be 10% to 20% of your discretionary income over a 20- or 25-year term.

Are large loan balances eligible for student loan forgiveness programs?

There are two popular federal student loan forgiveness programs that provide borrowers with repayment relief. The first is through income-driven repayment.

After making all payments under an IDR plan, borrowers are eligible for IDR loan forgiveness on any remaining unpaid balance. However, the canceled amount might count as taxable income on your federal tax return, so plan accordingly.

The second main forgiveness program is Public Service Loan Forgiveness (PSLF). You can be eligible if you work full-time for the government or a nonprofit organization and make 120 payments under an income-driven repayment plan. Once you've fulfilled those requirements, the remaining balance on your qualifying loans is forgiven.

However, the “One, Big, Beautiful Bill Act”, which was signed into law on July 4, 2025, includes a provision to overhaul income-driven repayment plans. The ICR, PAYE, and SAVE plans will be terminated by July 1, 2028.

A new Repayment Assistance Plan (RAP) will be added to the shortened list of income-driven plans. RAP calculates payments using borrowers' adjusted gross income, and reduces payments by $50 per dependent. It also has a longer repayment period of 30 years before IDR forgiveness kicks in. As a whole, RAP could result in higher monthly payments and more interest charges.

“It is critical to know the borrower's current financial situation, employment, unique circumstances, and individual goals before suggesting any repayment plan, whether income-driven or aggressive,” says Carey Donaldson, founder of NewBeginnings, LLC, a company focused on student loan advocacy and financial literacy.

She notes the importance of an income-driven plan for borrowers who are seeking forgiveness, and emphasizes that “the latest federal student loan policies are not changing our suggestions to student loan borrowers; it is a pivot.”

What repayment strategies work best for large loan amounts?

There's no one “right” repayment solution that works for all borrowers. One or a combination of the repayment strategies below can help make paying off six figures in student loans more manageable:

• Debt avalanche method: This method focuses on repaying the loan with the highest interest rate while making minimum payments on all other student loans. After that one's paid off, you start working on the one with the next-highest rate. The goal of this strategy is to save money on interest charges.
• Debt snowball method: The debt snowball method involves repaying the loan with the smallest balance while making minimum payments on all other student loans. Repaying smaller loans first can help you achieve small wins to keep the payoff momentum going.
• Biweekly payments: Splitting your monthly payment into two smaller, biweekly payments results in 1 extra full payment per year. You'll pay off your principal faster and pay less in interest, too.
• Bonus lump-sum payments: Put any financial windfall, like performance bonuses and tax refunds, toward paying down your principal. This helps you repay your six-figure debt faster while saving money on interest.
• Put raises toward your debt: When you get a salary bump, adjust your student loan payments to reflect the increase to accelerate your debt payoff timeline.

Harris also emphasizes the importance of balancing loan repayment with other goals.

“Psychologically, 'waiting to live' until the debt is gone is draining and unsustainable,” says Harris. “I help clients allocate money toward multiple priorities — retirement savings, building an emergency fund, or homeownership — while making consistent, structured loan payments. A blended approach often protects both financial health and mental health.”

Example payoff scenarios for $150,000 in loans

Below are sample repayment scenarios for a $150,000 student loan balance. The calculations are based on the following assumptions:

• Tax filing status: Single, family size of 1
• State of residence: Colorado
• Salary: $100,000 per year
• Outstanding loan: $150,000 in Direct PLUS Loans at an 8.94% interest rate

“The biggest mistake that I see borrowers make when trying to pay off large student loan balances is believing they have no choices to pivot, that they are stuck, and most commonly that ‘they will be paying off their student loans until they die,’” says Donaldson.

The reality is that “borrowers have options. Borrowers have choices,” she adds. “There are opportunities for respite, relief, and success. Be careful what you read and hear because much of the information that is out there creates fear and confusion, and it doesn't have to be that way.”