Theaverage student loan debtfor college students is $39,351. However, some students — such as those attending expensive law or medical programs — end up with $300,000 or more in education debt.
Paying off such a large balance can be difficult and time consuming. For example, if you had $300,000 in federal student loans and paid them off on the standard 10-year repayment plan with a 6.22% interest rate, you’d end up with a monthly payment of $3,364 and a total repayment cost of $403,663.
The good news is that there are several strategies that could help you pay off your student loans more easily.
1. Refinance your student loans
Student loan refinancingis 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. Just keep in mind that choosing a longer term means you’ll pay more in interest over time.
Keep in mind:
While you can refinance both federal and private loans, refinancing federal student loans will cost you access to federal benefits and protections — such as income-driven repayment plans and student loan forgiveness programs.
If you decide to refinance your student loans, be sure to 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:
4.74.7
Credible rating
Fixed (APR)
6.49% -
Loan Amounts
$10,000 - $750,000
Min. Credit Score
Does not disclose
Check Rates
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.
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
700
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. Must have earned at least a bachelor's degree to qualify.
Read full review
4.44.4
Credible rating
Fixed (APR)
5.48% -
Loan Amounts
$10,000 up to total refinance amount
Min. Credit Score
680
Check Rates
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 with no set maximum.
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
Check Rates
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
4.24.2
Credible rating
Fixed (APR)
6.94% -
Loan Amounts
Up to $300,000
Min. Credit Score
670
Check Rates
on Credible’s website
View Details
Overview
Iowa Student Loan Liquidity Corporation (ISL) is a nonprofit organization that can refinance student debt for undergraduates and their parents, graduate students, and medical and dental professionals. No degree is required to refinance, and even students who are still in school may qualify — a rarity in the marketplace.
The maximum amount you can refinance depends on the type of debt, though limits are generally high. ISL is also one of the few private lenders to offer a graduated repayment plan, where payments start small but gradually increase with time.
Interest rates
Fixed
Minimum credit score
670
Minimum income
Does not disclose
Loan terms
5, 7, 10, 15, or 20 years
Loan amounts
$5,000 minimum ($10,000 for California residents); maximum of $200,000 for in-school applicants, $300,000 for undergraduate and parent loans, and up to $400,000 for medical and dental professionals
Cosigner release
24 months
Eligibility
Must be a U.S. citizen or permanent resident (Maine residents are not eligible); cannot have defaulted on any private or federal student loan; and meet additional requirements depending on the type of refinance loan.
Read full review
4.64.6
Credible rating
Fixed (APR)
5.49% -
Loan Amounts
$5,000 - $250,000
Min. Credit Score
680
Check Rates
on Credible’s website
View Details
Overview
Founded in 2009, LendKey partners with 300+ community banks and credit unions to connect borrowers with the loans they need. You can compare multiple lenders at once without affecting your credit score.
However, the exact terms and qualification requirements available through LendKey vary depending on your chosen community lender. While you can easily compare options, you’ll need to read the fine print of each offer to make sure the loan offers everything you need.
Interest rates
Fixed or variable
Minimum credit score
680
Minimum income
Does not disclose
Loan terms
5, 7, 10, or 15 years
Loan amounts
$5,000 to $250,000
Cosigner release
Varies based on lender's terms
Eligibility
Must be a U.S. citizen or permanent resident and have already graduated with at least an associate degree from one of LendKey lenders’ eligible institutions.
Read full review
44
Credible rating
Fixed (APR)
6.20% -
Loan Amounts
$10,000 up to the total amount
Min. Credit Score
670
Check Rates
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
All APRs reflect autopay and loyalty discounts where available | LightStream disclosure | SoFi Disclosures | Read more about Rates and Terms
2. Consider using a cosigner when refinancing
You’ll typically need good to excellent credit to qualify for refinancing — a good credit score is usually considered to be 700 or higher. There are also several lenders that offerrefinancing for bad credit, but these loans usually come with higher interest rates compared to good credit loans.
If you’re struggling to get approved, consider applying with a creditworthy cosigner. 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: Reviewed and Rated
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 — typically 10% to 20% of your discretionary income. Additionally, you could have any remaining balance forgiven after 20 to 25 years, depending on the plan.
Here’s how the four main IDR plans compare to a few other federal repayment plan options:
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Check Out:PAYE vs. REPAYE: Which Repayment Plan Is Right for You?
4. Pursue loan forgiveness for federal student loans
There are several student loan forgiveness programs available if you have federal student loans. Most of these require you to work in a certain field as well as make qualifying payments for a specific period of time.
For example:
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. Adopt the debt avalanche or debt snowball method
If you have multiple loans and don’t qualify for forgiveness or refinancing, you might just need to buckle down and focus on paying them off. Here are a couple of strategies that could help:
Debt avalanche method
With thedebt avalanche method, you’ll concentrate on paying off the loan with the highest interest rate first while continuing to make the 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.
Tip:While the debt avalanche method can be a good option to save money on interest, it can also take a while before you see any results.
If you’re more motivated by small wins, you might consider the debt snowball method instead.
Debt snowball method
With thedebt snowball method, you’ll focus on paying off your 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.
Frequently asked questions
Here are the answers to a few commonly asked questions about paying off $300,000 in student loan debt:
How long does it take to pay off $300k student loans?
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 five to 20 years, depending on the lender.
Learn More:Private Student Loan Consolidation
Can I file for bankruptcy to eliminate my student loan debt?
Yes, you can file bankruptcy for student loan debt. But keep in mind that actually 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)
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.
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 20 or 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.
Do children inherit student debt?
Typically no. Here’s what you can typically expect:
- Federal studentsare 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 benefitted from the loan.
- Private student loansare 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?
Meet the expert:
Dori Zinn
Dori Zinn is a personal finance journalist with work featured in Huffington Post, Quartz, Wirecutter, Bankrate, and others. She loves helping people learn to be better with money.
