How Long It Takes To Pay Off Student Loans
Today we’re going to talk about how long it takes to pay student loans.
While there are a number of factors that play into this, one of the biggest is how much you have borrowed and for what period of time. If you have borrowed less and for a shorter period of time, then it will take less time to pay off your debt than someone who has borrowed more money for a longer period of time.
In addition to that, if you are able to make larger payments or have a steady income stream then it will also help reduce the amount of time it takes for you to pay off your student loans.
There are also ways to reduce how much interest you pay on your loans by choosing an affordable repayment plan and making extra payments whenever possible.
How Long It Takes To Pay Off Student Loans
Many college graduates get stressed about how long it will take to pay back their student loans — and it’s not hard to see why. A repayment plan can last decades. In a nightmare scenario, it could even last into the start of your retirement.
Bearing that in mind, you’re probably asking yourself: “how long will it take to pay off my student loan?”
This guide will walk you through all the basics of student loan payment plans, repayment terms, and how to calculate the monthly payments on your student loan until you’re debt-free.
The amount of time it takes to pay back a student loan in full depends on the type of loan, the amount borrowed, the interest rate, and the repayment plan the borrower selects, as well as the use of deferments and forbearances. Another factor is how much extra a borrower can pay each month.
That being said, most loan holders typically take no more than 16–19 years to pay back their federal student loans.
Translation: you shouldn’t have to worry about making student loan payments after you’ve retired from the world of work. But every borrower is different, so how long it takes you to repay your loan may be different than how long it takes your roommate.
Want to get a better idea of what your monthly payment will look like? Use our student loan calculator to figure out your monthly and total student loan payments.
Student loans are either federal student loans or private student loans. Both loan types have different interest rates and repayment options.
Let’s dive into each loan type and how their repayment plans work.
Repaying Federal Student Loans
A federal student loan is student aid backed by the U.S. Department of Education. There are several types of federal student loans, including subsidized and unsubsidized loans.
The government pays interest on your behalf with a subsidized loan while your loans are in deferment, either an in-school deferment, economic hardship deferment or unemployment deferment.
With an unsubsidized loan, interest is not subsidized, so it will continue to accrue.
Repayment plans for federal student loans are divided into two main categories: traditional repayment plans (including Standard, Graduated, and Extended) and four different income-driven repayment plans, which are based on your household income and family size.https://sfc-external-widgets.savingforcollege.com/student_loan_widget_v2/production/index.html?pageUrl=/article/how-long-does-it-take-to-repay-a-student-loan&widgetIdentifier=782788686502&loan_type=originator&audience=undergraduate
What is a traditional student loan repayment plan?
Traditional repayment plans are based on the loan’s principal balance. Your principal balance is just the amount of money you borrowed to fund your education.
Traditional repayment options don’t consider your income or family size when working out how much you will be paying every month.
Both traditional and income-driven repayment plans come with their own set of pros and cons — including different repayment terms.
Traditional repayment plans include:
Standard repayment plans
A standard repayment plan gives borrowers up to 10 years to repay their student loans.
With a standard repayment plan, the exact monthly payment amount will vary depending on the total loan amount you borrowed. However, the monthly minimum payment is $50.
As a good rule of thumb, the monthly payment you should expect to be giving back to your lender will be about 1% of the loan balance at repayment.
Graduated repayment
Under the graduated repayment plan, borrowers have up to 30 years to repay their federal student loans, depending on the amount borrowed.
Monthly payments will start just above interest-only payments and increase every two years.
Extended repayment
The extended repayment plan gives borrowers up to 30 years to repay their loans in full, depending on the amount owed.
Payments under this plan are generally lower than those under Graduated or Standard repayment.
This table breaks down those repayment terms.
| Loan balance | Repayment term |
| Less than $7,500 | 10 years |
| $7,500 to $9,999 | 12 years |
| $10,000 to $19,999 | 15 years |
| $20,000 to $39,999 | 20 years |
| $40,000 to $59,999 | 25 years |
| $60,000 or more | 30 years |
A similar set of repayment terms apply to graduated repayment.
how long does it take to pay off 100k in student loans
The length of time it’ll take you to pay off $100,000 in student debt depends on two personal variables: your current repayment plan and whether or not you’re able to put extra money toward your loans each month. The more you’re able to contribute to your debt per month, the sooner you can pay off the balance(s) — and the less you’ll pay in total.
It could realistically take between 15 and 20 years to pay off a $100,000 student loan balance, or longer if you require lower monthly payments. By refinancing your student loan, putting more money toward monthly payments, or taking advantage of programs such as loan forgiveness, you may be able to get out of debt in significantly less time.