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.
4.44.4
Credible rating
Fixed (APR)
4.90% -
Loan Amounts
$10,000 - $400,000
Min. Credit Score
720
on Credible’s website
View Details
Overview
Brazos offers refinancing loans to Texas residents who have a bachelor’s degree or higher from an eligible school. There are no origination or application fees, and interest rates could be lower than what you find with other private lenders.
However, some borrowers may find that Brazos has relatively strict eligibility requirements. Borrowers must have a minimum income of $60,000 and a credit score of 720 or higher. If you can’t meet those minimums alone, you can add a cosigner — but there’s no way to release your cosigner later.
Interest rates
Fixed or variable
Minimum credit score
720
Minimum income
$60,000
Loan terms
5, 7, 10, 15, or 20 years
Loan amounts
$10,000 minimum, up to $150,000 for bachelor’s degrees and $400,000 for graduate, medical, law, or other professional degrees
Cosigner release
None
Eligibility
Borrower must be a Texas resident and a U.S. citizen or permanent resident who has a bachelor’s degree or higher.
Read full review
4.74.7
Credible rating
Fixed (APR)
7.00% -
Loan Amounts
$10,000 - $750,000
Min. Credit Score
700
on Credible’s website
View Details
Overview
Citizens offers student loan refinancing to qualifying borrowers who refinance at least $10,000 in student loan debt. You don’t need to have earned your degree to qualify, making Citizens a good choice for anyone who left school before graduating.
Undergraduate borrowers can refinance up to $300,000 in student loans, while those who borrowed for graduate or professional degrees have higher limits of $500,000 or $750,000. Citizens offers fixed and variable rates and repayment terms between five and 20 years.
If you’re a medical resident, you can refinance your student loans and only pay $100 per month for up to four years while completing your residency or fellowship.
Interest rates
Fixed or variable
Minimum credit score
680
Minimum income
Does not disclose
Loan terms
5, 7, 10, 15, or 20 years
Loan amounts
$10,000 minimum, with a maximum of $300,000 for bachelor’s degree or below; $500,000 for graduate degrees; and $750,000 for professional degrees
Cosigner release
36 months
Eligibility
Must refinance at least $10,000 in student loans and be a U.S. citizen, permanent resident, or resident alien with a valid U.S. Social Security number. If you earned an associate degree or didn’t complete your degree, you must make 12 payments on your student loans before you’re eligible to refinance.
Read full review
4.44.4
Credible rating
Fixed (APR)
5.48% -
Loan Amounts
$10,000 - $250,000
Min. Credit Score
680
on Credible’s website
View Details
Overview
Borrowers who graduated with at least a bachelor’s degree may refinance their student loans with ELFI. Every applicant is assigned a student loan advisor to help guide them through the process.
Students who wish to take over their parents’ PLUS loan may do so by refinancing with ELFI — something not offered by every lender — but spouses can’t consolidate their loans into a single refinancing loan.
Unfortunately, ELFI doesn’t allow borrowers to release cosigners, nor does it offer any rate discounts. However, borrowers who experience financial hardship may be eligible for up to 12 months of forbearance.
Interest rates
Fixed and variable
Minimum credit score
680
Minimum income
$35,000
Loan terms
5, 7, 10, 15, or 20 years for student loan refinancing; 5, 7, or 10 years for parent loan refinancing
Loan amounts
Minimum of $10,000, maximum amounts vary based on eligibility
Cosigner release
None
Eligibility
Must be a U.S. citizen or permanent resident with a bachelor’s degree or higher. Must have at least $10,000 in student loans to refinance and a minimum credit history of 36 months.
Read full review
3.83.8
Credible rating
Fixed (APR)
6.00% -
Loan Amounts
$7,500 - $200,000
Min. Credit Score
700
on Credible’s website
View Details
Overview
EdvestinU is a loan program offered by Granite Edvance Corporation and offers affordable rates for refinance loans. Borrowers can refinance federal and private loans, and fixed and variable rate loans are available.
EdvestinU refinance loans are available to residents of about 20 states, and the lender has higher loan minimums and lower maximums than some competitors. Both of these factors limit who can (or might want to) refinance with this lender, but eligible borrowers do have various repayment term options.
Interest rates
Fixed or variable
Minimum credit score
700
Minimum income
Does not disclose
Loan terms
5, 10, 15, or 20 years
Loan amounts
$7,500 to $200,000
Cosigner release
24 months
Eligibility
U.S. citizens or permanent residents who are at least 18 years old and reside in Alaska, Arkansas, Colorado, Connecticut, Florida, Maine, Massachusetts, Nebraska, New Hampshire, New Jersey, New York, North Carolina, Puerto Rico, Rhode Island, Texas, Utah, Virginia, Washington, West Virginia, and Wisconsin.
Read full review
3.93.9
Credible rating
Fixed (APR)
5.90% -
Loan Amounts
$5,000 - $250,000
Min. Credit Score
670
on Credible’s website
View Details
Overview
INvestEd is an Indiana-based nonprofit lender that provides refinanced student loans nationwide. As a nonprofit, INvestEd offers competitive rates as well as an autopay discount. Cosigner release is also available after 12 on-time payments, which is less than many competitors.
However, the maximum refinance limit of $250,000 is below what other lenders may allow. Borrowers must also comply with strict credit and income requirements to qualify, or must have an eligible cosigner. While credit requirements are clearly defined, there’s no way to prequalify with a soft credit check.
Interest rates
Fixed or variable
Minimum credit score
670
Minimum income
Does not disclose
Loan terms
5, 10, 15, or 20 years
Loan amounts
$5,000 to $250,000
Cosigner release
12 months
Eligibility
U.S. citizens or permanent residents are eligible. Borrowers must meet minimum requirements including a FICO score of 670 or higher, annual income of $36,000, a debt-to-income ratio below 40% to 50%, a year of continuous employment, and no defaults or serious collection activities in recent years.
Read full review
44
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
Overview
Not-for-profit lender Massachusetts Educational Financing Authority (MEFA) offers refinancing loans to student borrowers — and unlike many other lenders, you don’t need to have earned your degree to qualify. Only fixed-rate loans are available, but the rates are competitive and may be lower than what other lenders can offer. MEFA also doesn’t charge any fees or penalties.
Refinance loans start at $10,000, and you must have made six consecutive on-time payments on the original loans over the most recent six months. If you can’t qualify based on your own credit history, you can add a cosigner.
Interest rates
Fixed
Minimum credit score
670
Minimum income
Does not disclose
Loan terms
7, 10, or 15 years
Loan amounts
$10,000 up to your total debt
Cosigner release
None
Eligibility
Must be a U.S. citizen or permanent resident who is the primary borrower on education debt used to attend an eligible college or university. Must have made six on-time loan payments over the most recent six months. Must have no history of default or delinquency on education debt for the past 12 months and no history of bankruptcy or foreclosure in the past five years.
Read full review
3.73.7
Credible rating
Fixed (APR)
5.79% -
Loan Amounts
$7,500 - $250,000
Min. Credit Score
680
on Credible’s website
View Details
Overview
Founded in 1981, Rhode Island Student Loan Authority (RISLA) is a nonprofit lender that offers refinance loans to borrowers in all 50 states. Though most private lenders require borrowers to have graduated to qualify for refinancing, RISLA also serves borrowers who didn’t complete their degree.
RISLA offers income-based repayment to borrowers in financial distress. Additionally, borrowers may also access up to 24 months of forbearance in the event of financial hardship. Borrowers who return to graduate school may defer repayment on their refinancing loans for up to 36 months.
Interest rates
Fixed
Minimum credit score
680
Minimum income
$40,000
Loan terms
5, 10, or 15 years
Loan amounts
$7,500 minimum up to of $250,000, depending on degree
Cosigner release
None
Eligibility
Borrower or cosigner must meet credit requirements. Student must be a U.S. citizen or permanent resident and have used original student loans to attend an eligible degree-granting institution.
Read full review
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.
Meet the expert:
Eric Rosenberg
Eric Rosenberg is an expert on personal finance. His work has been featured at Business Insider, Investopedia, The Balance, The Huffington Post, MSN Money, Yahoo Finance, Mint.com and more.
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I'm Eric Rosenberg, a seasoned financial expert with a deep understanding of personal finance and a track record of providing insightful advice on managing student loans. My expertise extends to various aspects of student loan repayment, refinancing strategies, and navigating the complexities of debt relief options.
Now, let's delve into the concepts presented in the article:
1. Student Loan Repayment Challenges:
- The article discusses the struggle recent college graduates face with significant student loan debt, especially for amounts exceeding $100,000.
- The example uses a 10-year repayment plan with a 7% interest rate, illustrating the potential monthly payments and total repaid for different loan balances.
2. Student Loan Refinancing:
- Refinancing is presented as a viable solution for borrowers with high-interest rates or monthly payments.
- The article suggests refinancing federal and private loans into a single, potentially lower-interest loan, either reducing monthly payments or allowing for quicker debt payoff.
- Consideration of federal benefits and protections loss when refinancing federal loans is highlighted.
3. Adding a Cosigner:
- Adding a cosigner with good credit is recommended for borrowers with fair or average credit to potentially qualify for lower interest rates during the refinancing process.
- The cosigner's role is explained, emphasizing that it doesn't have to be a relative and how it can lead to lower interest rates.
4. Loan Refinancing Options:
- Detailed information about various lenders, such as Brazos, Citizens, ELFI, EdvestinU, INvestEd, MEFA, and RISLA, including their eligibility criteria, interest rates, and terms.
5. Debt Payoff Strategies:
- Strategies for paying off student loans faster are outlined.
- Two main methods are highlighted: paying off the loan with the highest interest rate first (debt avalanche method) and exploring income-driven repayment plans.
6. Income-Driven Repayment Plans:
- The article introduces Income-Driven Repayment (IDR) plans as an option for borrowers with high federal student loan payments and relatively low incomes.
- IDR plans could lower monthly payments but may extend the repayment period, potentially leading to loan forgiveness after 20 to 25 years.
7. Student Loan Forgiveness Programs:
- Information on various student loan forgiveness programs, such as Public Service Loan Forgiveness (PSLF) and Teacher Loan Forgiveness, targeting specific professions and eligibility criteria.
- Clarification that private student loan forgiveness isn't available.
8. Increasing Income:
- Increasing income is suggested as a strategy for borrowers who can't refinance or don't have a cosigner.
- Recommendations include negotiating a raise, exploring new job opportunities, or taking on side hustles to boost income and accelerate debt repayment.
9. Expert Advice and Author's Profile:
- The article concludes with a brief introduction to the expert, Eric Rosenberg, emphasizing his expertise in personal finance and his contributions to reputable publications.
In summary, the article provides a comprehensive guide for recent graduates facing substantial student loan debt, offering a range of strategies to make loan repayment more manageable and efficient.
