The average student loan debt for 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 refinancing is 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:
Advertiser DisclosureOverview
Citizens student loan refinancing is available to qualified borrowers who want to refinance at least $10,000.
Borrowers who earned undergraduate degrees can refinance as much as $300,000 in student loans. Those who borrowed for graduate or professional degrees can refinance from $500,000 to $750,000. Citizens refinancing loans are available with fixed or variable rates. Repayment terms are flexible, ranging from five to 20 years.
Medical residents can refinance student loans and only pay $100 per month for up to four years while completing residency or fellowship.
pros
- Range of repayment options between 5 and 20 years
- Offers prequalification with no impact on credit score
- Offers rate discounts for existing customers and autopay
cons
- Cosigners not eligible for release until after 36 payments are made
- Refinancing unavailable until you make 12 payments on your loans if you earned an associate degree or no degree at all
- Minimum loan amounts are higher than some other lenders
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
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.
$10,000 up to total refinance amount
Overview
ELFI offers student loan refinancing to borrowers who graduated with a bachelor's degree or higher. Borrowers can even refinance their parents' PLUS loans in their own name. Plus, each ELFI borrower gets paired with a student loan adviser to help them through the refinancing process.
While borrowers can add a cosigner to their application, they can't release that cosigner later on. ELFI also doesn't offer rate discounts, but borrowers can apply for a forbearance of up to 12 months if they're experiencing financial hardship.
pros
- Doesn’t charge application or origination fees
- Borrowers are assigned to a student loan adviser
- Student borrowers can refinance parent PLUS loans in their name
- Clear credit and income requirements
- Offers financial hardship forbearance of up to 12 months
cons
- Doesn’t offer any discounts
- Need at least a bachelor’s degree to refinance
- Doesn’t offer cosigner release
- Charges fees for late and returned payments
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.
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.
Overview
EdvestinU offers student loan refinancing through Granite Edvance Corporation, a New Hampshire-based nonprofit. The lender stands out with competitive interest rates and flexible repayment terms for borrowers with strong credit. To qualify, you'll need a credit score of at least 700 and an annual income of $30,000 for loans less than $100,000 or $50,000 for larger amounts. However, loans aren't available in all U.S. states.
Unlike many lenders, EdvestinU lets you refinance without a degree or while still enrolled in school. New Hampshire residents also receive a 1.5 percentage point interest rate reduction, making it an excellent option for those in the state.
pros
- You can refinance without a degree or while enrolled in school
- Autopay rate discount available
- New Hampshire residents save 1.5 percentage points on their interest rate
cons
- Refinancing is only available in select states
- High minimum credit score requirement
- Requires a higher minimum loan balance than some lenders
- Cosigner release requires 2 years of on-time payments
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.
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.
pros
- No degree required
- Certain borrowers can qualify for graduated repayment
- No origination, prepayment, or late fees
- Transparent credit and income requirements
- Autopay discount of 0.25 percentage points
cons
- No variable rates offered
- Caps on maximum loan amounts
- Maine residents not currently eligible
- Minimum loan amount of $10,000 for California residents
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
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.
Overview
LendKey is a marketplace that connects borrowers with more than 300 community banks and credit unions to find the best student loan refinancing options. Unlike most lenders, LendKey allows you to refinance your student loans while you're still in school, as long as you've earned at least an associate degree.
One of LendKey's biggest advantages is that it can help you compare multiple loan offers in one place. However, specific loan terms and eligibility requirements will vary by lender. Basic eligibility criteria include a minimum credit score of 680 and at least $5,000 in outstanding debt to refinance.
pros
- You can refinance with just an associate degree
- Can earn a $200 bonus for referring friends and family
- Lower your rate by a quarter of a percentage point with autopay
- No fees for applications or loan origination
cons
- Some lenders may require membership in a credit union or local bank
- Loan terms and qualifications vary by lender
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.
$10,000 up to the total amount
Overview
Massachusetts Educational Financing Authority (MEFA) is a student refinancing lender offering a wide range of options, including to borrowers who didn't finish school. Though the lender doesn't offer variable-rate options, its fixed-rate loans have competitive rates.
MEFA's mission is to provide affordable student loans, and it doesn't charge any fees. You must have at least $10,000 in student loans to refinance, and you must have made a minimum of six consecutive on-time payments over the last six months. Borrowers who are unable to qualify on their own can add a cosigner to their application.
pros
- You can refinance without having graduated
- Doesn’t charge fee
- Can prequalify to check your rate
cons
- Can’t release a cosigner
- Doesn’t have any discounts
- Can’t refinance parent student loans
- Doesn’t offer variable-rate loans
Loan amounts
$10,000 up to your total debt
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.
Overview
Citizens student loan refinancing is available to qualified borrowers who want to refinance at least $10,000.
Borrowers who earned undergraduate degrees can refinance as much as $300,000 in student loans. Those who borrowed for graduate or professional degrees can refinance from $500,000 to $750,000. Citizens refinancing loans are available with fixed or variable rates. Repayment terms are flexible, ranging from five to 20 years.
Medical residents can refinance student loans and only pay $100 per month for up to four years while completing residency or fellowship.
pros
- Range of repayment options between 5 and 20 years
- Offers prequalification with no impact on credit score
- Offers rate discounts for existing customers and autopay
cons
- Cosigners not eligible for release until after 36 payments are made
- Refinancing unavailable until you make 12 payments on your loans if you earned an associate degree or no degree at all
- Minimum loan amounts are higher than some other lenders
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
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.
Loan Amounts
$10,000 up to total refinance amount
Overview
ELFI offers student loan refinancing to borrowers who graduated with a bachelor's degree or higher. Borrowers can even refinance their parents' PLUS loans in their own name. Plus, each ELFI borrower gets paired with a student loan adviser to help them through the refinancing process.
While borrowers can add a cosigner to their application, they can't release that cosigner later on. ELFI also doesn't offer rate discounts, but borrowers can apply for a forbearance of up to 12 months if they're experiencing financial hardship.
pros
- Doesn’t charge application or origination fees
- Borrowers are assigned to a student loan adviser
- Student borrowers can refinance parent PLUS loans in their name
- Clear credit and income requirements
- Offers financial hardship forbearance of up to 12 months
cons
- Doesn’t offer any discounts
- Need at least a bachelor’s degree to refinance
- Doesn’t offer cosigner release
- Charges fees for late and returned payments
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.
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.
Overview
EdvestinU offers student loan refinancing through Granite Edvance Corporation, a New Hampshire-based nonprofit. The lender stands out with competitive interest rates and flexible repayment terms for borrowers with strong credit. To qualify, you'll need a credit score of at least 700 and an annual income of $30,000 for loans less than $100,000 or $50,000 for larger amounts. However, loans aren't available in all U.S. states.
Unlike many lenders, EdvestinU lets you refinance without a degree or while still enrolled in school. New Hampshire residents also receive a 1.5 percentage point interest rate reduction, making it an excellent option for those in the state.
pros
- You can refinance without a degree or while enrolled in school
- Autopay rate discount available
- New Hampshire residents save 1.5 percentage points on their interest rate
cons
- Refinancing is only available in select states
- High minimum credit score requirement
- Requires a higher minimum loan balance than some lenders
- Cosigner release requires 2 years of on-time payments
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.
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.
pros
- No degree required
- Certain borrowers can qualify for graduated repayment
- No origination, prepayment, or late fees
- Transparent credit and income requirements
- Autopay discount of 0.25 percentage points
cons
- No variable rates offered
- Caps on maximum loan amounts
- Maine residents not currently eligible
- Minimum loan amount of $10,000 for California residents
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
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.
Overview
LendKey is a marketplace that connects borrowers with more than 300 community banks and credit unions to find the best student loan refinancing options. Unlike most lenders, LendKey allows you to refinance your student loans while you're still in school, as long as you've earned at least an associate degree.
One of LendKey's biggest advantages is that it can help you compare multiple loan offers in one place. However, specific loan terms and eligibility requirements will vary by lender. Basic eligibility criteria include a minimum credit score of 680 and at least $5,000 in outstanding debt to refinance.
pros
- You can refinance with just an associate degree
- Can earn a $200 bonus for referring friends and family
- Lower your rate by a quarter of a percentage point with autopay
- No fees for applications or loan origination
cons
- Some lenders may require membership in a credit union or local bank
- Loan terms and qualifications vary by lender
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.
Loan Amounts
$10,000 up to the total amount
Overview
Massachusetts Educational Financing Authority (MEFA) is a student refinancing lender offering a wide range of options, including to borrowers who didn't finish school. Though the lender doesn't offer variable-rate options, its fixed-rate loans have competitive rates.
MEFA's mission is to provide affordable student loans, and it doesn't charge any fees. You must have at least $10,000 in student loans to refinance, and you must have made a minimum of six consecutive on-time payments over the last six months. Borrowers who are unable to qualify on their own can add a cosigner to their application.
pros
- You can refinance without having graduated
- Doesn’t charge fee
- Can prequalify to check your rate
cons
- Can’t release a cosigner
- Doesn’t have any discounts
- Can’t refinance parent student loans
- Doesn’t offer variable-rate loans
Loan amounts
$10,000 up to your total debt
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.
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 offer refinancing 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:
| | | | Eligible for loan forgiveness? |
|---|
| Any borrower with Direct or FFEL Loans | Amount when payments are spread equally over 10 years (usually $50 minimum) | | |
| Any borrower with Direct or FFEL Loans | Depends on loan amount
(payments start low and increase every 2 years) | | |
| Any borrower with more than $30,000 in Direct or FFEL Loans | Fixed: Spread evenly over up to 25 years
Graduated: Depends on loan amount (start low and increase every 2 years) | | |
| Borrowers with partial financial hardship
(no Parent PLUS Loans) | For borrowers who took out loans after July 1, 2014: 10% of discretionary income
(never more than 10-year plan)
For borrowers who took out loans before July 1, 2014: 15% of discretionary income
(never more than 10-year plan) | For borrowers who took out loans after July 1, 2014: 20 years
For borrowers who took out loans before July 1, 2014: 25 years | |
| - Must have partial financial hardship
- Must have borrowed on or after Oct. 1, 2007
| 10% of discretionary income
(never more than 10-year plan) | | |
| Any borrower
(no Parent PLUS Loans) | 10% of discretionary income
(no cap) | 20 years
(25 years if repaying grad school debt) | |
| Any borrower
(Parent PLUS Loans must be consolidated) | 20% of discretionary income
(or income-adjusted payment on 12-year plan) | | |
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 the debt 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 the debt 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 students are 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 loans are 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 over 10 years of experience. Her work has been featured by Huffington Post, USA Today, Wirecutter, Bankrate, and CBS News.
