How Long Does It Take to Pay Off Student Loans?
Credit: Image Credit: Jeffrey Coolidge / Stone / Getty ImagesData Summary
Student loans can take 5-20 years or longer to repay.- It would take the average bachelor’s degree graduate about 10 years to pay off their student loan debt if they made debt payments of $300 a month.
- 18 million federal student loan borrowers are on a 10-year repayment plan.[1]
- 2.9 million federal loan borrowers are on an extended repayment plan, which lasts up to 25 years.Note Reference [1]
- More than half of federal student loan borrowers are over 35.Note Reference [1]
- Student loan debt varies by race and gender. So does median income.[2] It takes the average female college graduate longer to repay their debt than the average male graduate, and it takes the average Black college graduate longer to repay than the average white graduate.
- It would take the average male professional degree-completer about 12 and a half years to pay off his student loan debt if he spent 15% of his income on repayment. The average female professional degree-completer would take over 29 years.
Most borrowers are on the standard 10-year plan to repay their federal student loan debt. But that doesn’t mean they’re able to meet these terms. Nearly 24 million people over 35 owe some federal student loan debt.
The average time to pay off student loans depends on a borrower’s loan amount, interest rate, and how much they can afford to pay each month.
This guide explains the average student loan payoff time and covers typical repayment periods for federal and private student loans.
Average Time to Pay Off Student Loans
It takes 10 years to pay off student loan debt on the standard federal loan repayment plan. However, some undergraduate borrowers may be able to pay off student loans faster by making larger payments.
| Monthly Payment | Time to Repay Average Student Loan Debt |
|---|---|
| $300 | 10 years, 1 month |
| 10% of monthly income | 5 years, 3 months |
| 20% of monthly income | 2 years, 6 months |
Behind the Numbers
In the table above and the sections below, we used the following data:
- Bachelor’s degree-completers’ average federal student loan debt at graduation in 2021-2022 dollars overall and by race and gender.[3]
- 25- to 34-year-old bachelor’s degree-holders’ median incomes in 2021 overall and by race and gender.Note Reference [2]
- The current federal interest rate for undergraduate student loans: 5.5%.[4]
- Graduate degree-completers’ average federal student loan debt at graduation in 2021-2022 constant dollars[5] and median income by degree level and gender.[6]
- The current federal interest rate for graduate student loans: 7.05%.Note Reference [4]
The figures do not include private loan debt. Average graduate student loan payoff times do not include borrowers’ debt from their undergraduate studies.
Average Time to Pay Off Student Loans by Gender and Race
Women and Black students are more likely to take out federal loans and borrow higher amounts on average than male and white students, respectively.Note Reference [3] Additionally, income inequality — which includes the gender pay gap and racial wealth gap — impacts borrowers’ ability to pay off loans. As such, average student loan payoff times vary by gender and race.
Assuming that borrowers can pay 10% of their monthly income against their student loan debt:
- It would take the average female bachelor’s degree-holder almost two years longer than the average male to repay their student loans.
- It would take the average Black bachelor’s degree-holder more than twice as long as the average white borrower to repay their student loans.
Average Time to Pay Off Graduate Student Loans
Graduate degrees typically cost more than undergraduate degrees. So, graduate students tend to borrow more and can take longer to pay off their loans. While higher degrees correlate with higher earningsNote Reference [6], graduate degree-holders can still take longer than undergraduate degree-holders to pay off their debt.
If the average master’s degree-holder pays 15% of their monthly income against their debt, they could repay their debt in about four and a half years on the average man’s salary and six and a half years on a woman’s salary.
If a graduate degree holder were to devote 10% of their income to repaying student loan debt, repayment would take longer.
Assuming that a woman with a professional degree graduate owes the average amount of debt and earns the median income for a woman with her degree, it’s mathematically impossible for her to repay her debt on this income. Interest would accumulate faster than she could pay down the debt.
| Degree Level | Student Loan Payoff Time (Men) | Student Loan Payoff Time (Women) |
|---|---|---|
| Master’s Degree | 7 years, 7 months | 11 years, 4 months |
| Doctoral Degree | 7 years, 1 month | 11 years, 7 months |
| Professional Degree | 31 years, 4 months | Impossible. Interest would accumulate faster than the borrower could repay the loan. |
How Long Does It Take to Pay Off Federal Student Loans?
The standard federal student loan repayment plan divides monthly payments over 10 years.[7] However, borrowers have options. Borrowers with multiple federal student loans can consolidate loans and make payments over 10-30 years. In addition, the government offers income-driven repayment plans allowing borrowers to make smaller payments over a longer period.
At the end of 2023, there were about 43.2 million total federal student loan borrowers.Note Reference [1]
Standard Student Loan Payoff Time for Federal Loans
- Around 18 million federal student loan borrowers are on a repayment plan that lasts 10 years or less.Note Reference [1]
- Of those borrowers, 15.2 million make monthly payments of equal amounts, and 2.8 million make graduated payments. Graduated payments start lower and increase every two years.Note Reference [1]
- At the end of 2023, 1.2 million borrowers were in forbearance, meaning they do not currently need to make student loan payments.Note Reference [1]
- Borrowers do not need to begin making student loan payments until six months after leaving or completing their program.[8]
- 6.1 million current students and 1.6 million recent graduates have not yet entered federal student loan repayment.Note Reference [1]
Extended Repayment for Federal Loans
If you borrow more than $30,000 on a direct loan and have no other outstanding direct loan debt, you can qualify for extended repayment. Extended repayment lasts up to 25 years.[9]
About 2.9 million borrowers were in extended repayment at the end of 2023.Note Reference [1]
Average Student Loan Payoff Time After Consolidation
Consolidating student loans can help create more manageable payments. Federal Direct Consolidation Loans last 10-30 years.
To determine your loan term, the government considers how much total debt you have, including debt you are consolidating and any other student loans, including private loans.
| Total Student Loan Debt | Repayment Period |
|---|---|
| Less than $7,500 | 10 years |
| $7,500-10,000 | 12 years |
| $10,000-$20,000 | 15 years |
| $20,000-$40,000 | 20 years |
| $40,000-$60,000 | 25 years |
| Greater than $60,000 | 30 years |
Average Student Loan Payoff Time for Income-Driven Repayment Plans
The government offers four income-driven repayment (IDR) plans. For each, borrowers owe monthly payments based on a percentage of their discretionary income — i.e., what they make above a federally set threshold. The repayment periods for these plans vary. Generally, the repayment period is 20-25 years.[10]
Income-Based Repayment: 20-25 Years
- Borrowers must owe more than their annual discretionary income to qualify for this plan.
- Borrowers pay 10-15% of their monthly discretionary income.
- 3.2 million borrowers are on this plan.Note Reference [1]
Income-Contingent Repayment: 25 Years
- Most federal loans, including consolidated loans, are eligible for this plan.
- Borrowers pay 20% of their monthly discretionary income.
- 1 million borrowers are on this plan.Note Reference [1]
Pay-As-You-Earn (PAYE) Repayment: 20 Years
- Only new borrowers qualify for this plan.
- To qualify, borrowers must owe more than their annual discretionary income.
- Borrowers pay 10% of their monthly discretionary income.
- 1.6 million borrowers are on this plan.Note Reference [1]
Saving on a Valuable Education (SAVE) Repayment: 20 Years or Less
- Most federal loans — except loans made to parents — are eligible for this plan.
- Borrowers pay 10% of their monthly discretionary income.
- 4.9 million borrowers are on this plan.Note Reference [1]
| Income-Driven Repayment Plan | Repayment Period | Payment Amount (% of Discretionary Income) | Number of Borrowers |
|---|---|---|---|
| Income-Based Repayment | 20-25 years | 10-15% | 3.3 million |
| Income-Contingent Repayment | 25 years | 20% | 820,000 |
| Pay-As-You-Earn (PAYE) | 20 years | 10% | 1.5 million |
| Saving on a Valuable Education | 20 years or less | 10% | 4.9 million |
How Long Does It Take to Pay Off Private Student Loans?
Private student loan interest rates vary. They can take 3-30 years to repay. Private lenders assign different terms and interest rates depending on a borrower’s credit, income, and other factors. Find a few scenarios below.
Repayment Period After Refinancing
If you’re stuck in a high-interest loan, you may be able to lower your monthly payments or become debt-free faster by refinancing with a lower interest rate.
See how repayment periods change with a lower interest rate in the scenarios below.
Behind the Numbers
- We sampled six private lenders and found an average fixed interest rate of 8.4% and an average refinance rate of 7.25%.
- Keep in mind that some private lenders offer loans with variable interest rates, meaning that the interest rate and your payment may change monthly. The repayment period will not change.
Frequently Asked Questions About How Long It Takes to Pay Off Student Loans
The standard student loan payoff time for federal student loans is 10 years. However, repayment time depends on the loan amount and how much you can pay a month.
A bachelor’s degree-holder with the average amount of federal loan debt would need to pay just over $300 a month to pay off their loan within 10 years.