How Long Does It Take To Pay Off 10k In Student Loans

Last Updated on August 25, 2023

It’s no secret that student loan debt is a major problem in America. According to the Federal Reserve Bank of New York, Americans owe nearly $1.5 trillion in student loan debt and more than 44 million people are currently paying off their loans. While many of us have been able to pay down our debts with relative ease, others have found themselves buried under a mountain of debt they may never be able to climb out from under.

But how long does it take to pay off 10k in student loans?

While there’s no one-size-fits-all answer, there are some factors that can help you determine how long it will take you to pay off your student loans—and whether or not you’ll ever be able to do so.

How Long Does It Take To Pay Off Student Loans? | Bankrate

How Long Does It Take To Pay Off 10k In 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.

How Long Will it Take to Pay Off My Student Loan?

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=416374541139&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 

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 balanceRepayment term
Less than $7,50010 years
$7,500 to $9,99912 years
$10,000 to $19,99915 years
$20,000 to $39,99920 years
$40,000 to $59,99925 years
$60,000 or more30 years

A similar set of repayment terms apply to graduated repayment. 

how long to pay off 20k student loan

Students who graduate with federal student loan debt are automatically enrolled in the Standard Repayment Plan, which lasts 10 years. But you can change the repayment plan if you need more flexibility in your budget.

The federal student loan repayment plans include:

  • Standard Repayment Plan: Fixed monthly amount for 10 years (or between 10 and 30 years if you have a Direct Consolidation Loan).
  • Graduated Repayment Plan: Payments start out low and gradually increase over time, usually every two years, with repayment completed within 10 years (or between 10 and 30 years if you have a Direct Consolidation Loan).
  • Extended Repayment Plan: Fixed or graduated payments with a 25-year term.

There are five types of income-driven repayment plans you can apply for, depending on your loan type:

  • Revised Pay As You Earn Repayment Plan (REPAYE Plan): Pay 10 percent of your discretionary income for 20 to 25 years for undergraduate or graduate school loans, respectively.
  • Pay As You Earn Repayment Plan (PAYE Plan): Pay 10 percent of your discretionary income for 20 years.
  • Income-Based Repayment Plan (IBR Plan): Pay 10 percent of your discretionary income for 20 years if you’re a new borrower (on or after July 1, 2014) or 15 percent of your discretionary income for 25 years if you’re not a new borrower.
  • Income-Contingent Repayment Plan (ICR Plan): Pay 20 percent of your discretionary income for 25 years or what you would pay on a 12-year repayment plan adjusted to your income.
  • Income-Sensitive Repayment Plan (ISR Plan): Make payments on FFEL Loans based on your income over a period of 10 years.

Private student loan lenders have their own repayment options. In general, you can expect to repay your private student loans within five to 20 years unless you choose to refinance.

When do you start paying back student loans?

Borrowers with federal student loans are required to make their first payment six months after they graduate, leave school or drop below half-time enrollment. If they can’t afford to make payments, they can apply for a deferment or forbearance or switch to a different repayment plan.

Most private lenders also provide a six-month grace period for borrowers, and some may extend this to nine or 12 months. Contact the lender to find out when your first payment is due. Many private lenders also offer a forbearance program.

Factors that could impact your student loan repayment

While a general goal is paying off your student loans within 10 years, there are several scenarios that could lengthen or shorten your student loan repayment.

About the author

The Editorial Team at Infolearners.com is dedicated to providing the best information on learning. From attaining a certificate in marketing to earning an MBA, we have all you need. If you feel lost, reach out to an admission officer.
Study on Scholarship Today -- Check your eligibility for up to 100% scholarship.

Leave a Comment