How to Pay Off $50,000 of Student Loans
Updated On March 23, 2022
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If you have $50,000 of student loans, it may feel intimidating to pay off student loans. However, there are helpful strategies that can help with student loan repayment. From student loan refinancing to an income-driven repayment, let’s explore how to pay off $50,000 of student loans.
Top Picks For Student Loan Refinancing
Here are 5 ways to pay off $50,000 of student loans:
- Refinance student loans
- Increase student loan payments
- Consider an income-driven repayment plan
- Pursue student loan forgiveness
- Refinance student loans with a cosigner
Refinance student loans
If you have $50,000 of student loans, your best options may be to refinance student loans. Student loan refinancing helps you get a lower interest rate and lower monthly payment so that you can pay off your student loans faster. First, it's possible to combine your existing federal student loans, private student loans or both into a single student loan with a lower interest rate, which can save you money. Second, you can refinance both college and graduate school student loans, and you can choose a fixed or variable interest rate. Third, you can also choose a student loan repayment term from 5 to 20 years, which can provide flexibility for student loan repayment.
How much money can you save with student loan refinancing? This student loan refinancing calculator shows you how much you can save when you refinance student loans.
For example, let’s assume that you have $50,000 of student loans at a 7% interest rate and a 10-year repayment term. Let’s assume you refinance student loans at a 3% interest rate and a 10-year repayment term. You would save $98 each month and $11,729 overall.
There are no application fees, origination fees or prepayment fees when you refinance student loans. To qualify to refinance student loans, you typically need a 650 credit score, be currently employed with steady income, and have enough monthly cash flow to pay debt and living expenses.
Here are helpful resources for student loan refinancing:
- How to refinance student loans
- Why you should refinance student loans now
- Is student loan refinancing worth it?
Increase student loan payments
If you want to know how to pay off $50,000 of student loans, you can increase your student loan payments. This assumes that you have extra funds to pay off student loans, which not everyone has. If you have extra funds of any amount, you can instruct your student loan servicer to apply your extra student loan payment to pay off your principal student loan balance. For example, you could increase your monthly payment by $100 each month.
This student loan payoff calculator shows you how much money you can save when you pay off your student loans faster.
Let’s assume that you have $50,000 of student loans and an 8% interest rate. Let’s also assume that your monthly student loan payment is $607. If you pay an extra $100 per month (for a total of $707 per month), you could pay off your student loans 1.99 years earlier and save $4,923.
Consider an income-driven repayment plan
Another way to pay off $50,000 of student loans is to enroll in an income-driven repayment plan. An income-driven repayment plan bases your monthly federal student loan payment on your discretionary income, family size and state of residence. With an income-driven repayment plan, it’s possible to get a federal student loan payment as low as $0 each month.
There are four income-driven repayment plans:
- Income-Based Repayment (IBR)
- Pay As You Earn (PAYE)
- Revised Pay As You Earn (REPAYE)
- Income-Contingent Repayment (ICR)
After 20 years (undergraduate student loans) or 25 years (graduate student loans) of on-time monthly payments, you can get student loan forgiveness for your remaining federal student loan balance.
Pursue student loan forgiveness
Pursue student loan forgiveness
If you want to know how to pay off $50,000 of student loans, you could consider student loan forgiveness. Student loan forgiveness is available for federal student loans only through the federal government. There are multiple opportunities for federal student loan forgiveness. Two popular options include public service loan forgiveness and teacher loan forgiveness. There are also opportunities for student loan forgiveness. For example, if you have a total and permanent disability, you could qualify for total student loan cancellation. Similarly, if you were misled by your college or university, you could qualify for student loan forgiveness under borrower defense to repayment.
Public Service Loan Forgiveness
If you have $50,000 of federal student loans, you could get student loan forgiveness through the Public Service Loan Forgiveness program. To qualify, you must work full-time for a qualified public service or non-profit employer and make 120 monthly student loan payments. You also must meet other requirements, including making a majority of federal student loan payments while enrolled in an income-driven repayment plan.
This public service loan forgiveness calculator shows you your monthly student loan payment and how much student loan forgiveness you can get when you enroll in public service loan forgiveness.
Teacher Student Loan Forgiveness
While public service loan forgiveness provides full student loan forgiveness, the Teacher Loan Forgiveness program can provide up to $17,500 of federal student loan forgiveness. To qualify, you must be employed full-time for five complete and consecutive academic years at an elementary school, secondary school or educational service agency that serves low-income students.
Refinance student loans with a cosigner
If you want to pay off $50,000 of student loans, you could also refinance student loans with a cosigner. A cosigner is a relative such as a parent or spouse that helps you get approved for student loan refinancing and qualify for a lower interest rate. A qualified cosigner will assume equal financial responsibility for your student loans and should have strong credit and stable income. A qualified cosigner can be especially helpful if you don’t qualify on your own for student loan refinancing. Alternatively, you may qualify for student loan refinancing, but a cosigner can help you get a lower interest rate so you can save money.
Compare the latest rates for student loan refinancing.