How Long Does It Take to Pay Off Student Loans – If you took a student loan and you will want to know how long it will take for your student loan to be paid off, then this article will come in handy for you. Typically, how long it will take for a student to pay off a loan depends on the loan amount, the annual percentage rate, and the payment rate.
If you have federal student loans, you’ll need to start making payments six months after you graduate, leave school, or drop below half-time enrollment. If you can’t afford your loan payments right away, you can apply for deferment, forbearance, or switch to a new repayment plan to make things easier.
When Will My Student Loans Be Paid Off?
Students who take federal student loans can repay their loans within 10 to 30 years. However, if you graduated with a federal student loan, your loan automatically moved to the standard repayment plan.
Federal Repayment Plans
If you took a federal student loan, you have 10 to 30 years to repay your loan. Although there are federal repayment plans that offer students different options to repay their loan amounts. Also, if you are a graduate, you will be automatically enrolled in the Standard repayment plan. But if you would rather choose another payment option, you can contact your loan servicer and request that your repayment plan be changed.
| Federal Repayment Plan | Repayment Term | Type of Payment |
| Standard repayment plan | 10 years (10 to 30 years for Direct Consolidation Loans) | Fixed |
| Graduate repayment plan | 10 years (10 to 30 years for Direct Consolidation Loans) | Graduated |
| Extended repayment plan | Up to 25 years | Fixed or graduated |
Standard repayment plan
With the standard repayment plan, you pay off your loan over 10 years (or up to 30 years if you have a direct consolidation loan). Your monthly payments stay the same throughout the life of the loan.
Graduate repayment plan
The graduate repayment plan also has a repayment period of 10 years (or up to 30 years for consolidation loans). However, your payments start lower and then increase every two years. This plan is helpful if you expect your income to grow over time.
Extended Repayment Plan
If you need smaller monthly payments, the extended repayment plan might be a better fit. It lets you stretch your loan payments over up to 25 years. You can choose either fixed monthly payments or payments that gradually increase over time.
Income-Driven Repayment Plans
If you have federal student loans, you may qualify for different income-driven repayment plans based on your loan type. These plans adjust your monthly payments according to your income and family size:
- Revised Pay as You Earn (REPAYE) Plan: Pay 10% of your discretionary income for 20 years. If you have graduate loans, the repayment period extends to 25 years.
- Pay As You Earn (PAYE) Plan: Pay 10% of your discretionary income for 20 years.
- Income-Based Repayment (IBR) Plan: If you’re a new borrower (after July 1, 2014), you’ll pay 10% of your discretionary income for 20 years. If you’re not a new borrower, you’ll pay 15% of your discretionary income for 25 years.
- Income-Contingent Repayment (ICR) Plan: Pay 20% of your discretionary income for 25 years, or pay the amount you would on a 12-year plan adjusted to your income.
- Income-Sensitive Repayment (ISR) Plan: For FFEL Loans, your payments are based on your income and can be stretched over up to 10 years.
When Do Student Loan Payments Start?
If you have federal student loans, you’ll need to start making payments six months after you graduate, leave school, or drop below half-time enrollment. This is known as your grace period. If you can’t afford your payments right away, you can apply for deferment, forbearance, or switch to a new repayment plan to make things easier.
Most private lenders also offer a six-month grace period, but some may extend it to nine or even 12 months. Always check with your lender to confirm when your first payment is due. Many private lenders also offer forbearance if you need extra time.
What Can Change Your Loan Repayment Timeline?
Several things can impact how quickly or slowly you pay off your student loans:
- Pausing Payments with Deferment or Forbearance: If you experience unemployment, financial hardship, or military service, you can pause your payments temporarily. However, this will extend your loan term, and you may end up paying more interest in the long run.
- Refinancing Your Student Loan: Refinancing replaces your old loans with a new private loan, giving you a new interest rate and repayment term. This can shorten or extend your repayment timeline depending on the plan you choose. Keep in mind that refinancing federal loans will cause you to lose federal benefits and protections.
- Making Extra Payments: Paying more than your required monthly amount, such as making biweekly payments, can help you pay off your loan faster and save on interest. But missing payments can stretch out your loan and hurt your credit score.
Frequently Asked Questions
Do You Have to Follow Your Student Loan Payment Schedule?
Yes. Lenders expect you to follow the payment schedule you agreed to. Missing payments can lead to late fees and seriously damage your credit score. If you’re facing financial hardship, you may qualify for temporary relief through deferment or forbearance.
Should You Pay Student Loans While Still in School?
Absolutely. Making even small payments while you’re in school can reduce the amount of interest that builds up, helping you save money and pay off your debt faster after graduation.
Can You Avoid Paying Student Loans and Wait for Forgiveness?
No, simply not paying is a risky move. Skipping payments can lead to loan default, harming your credit and financial future. Instead, explore options like income-driven repayment plans if you’re struggling, especially with federal loans.
