The average borrower will take approximately 20 years to pay off their student loans. Of course, the amount of time it takes to become free of student loans will depend on a borrower’s employment and financial situation, the type of school they attended, and the degree they earned while in school. Although no one can determine how long it will take you to pay off your student loans, there are some guidelines you can follow, and ways you can repay your student loans faster.
The Type of Degree Matters
The level of degree you earned, as well as the costs of your education, will have a direct impact on how long it takes you to repay your student loans. If you attend a private school or pursue postgraduate opportunities, you may have to take out additional student loans, which will mean they will take longer to pay off. The approximate length of time it will take to repay student loans for public colleges, by degree, are as follows:
- An Associate’s degree: Just over four years
- A Bachelor’s degree: Just over five and a half years
- A Master’s degree: Nine years
- A Doctorate: 5 years
- A professional degree: Just over 27 years
When taking out a student loan, you will have to choose a repayment plan and that will directly affect the length of time it takes to repay the debt. If you choose a plan that has a shorter term, the monthly payments you make will be higher, but you will pay off your student loan debt faster. If you choose a repayment plan with a longer-term, or the plan is income-based, it will likely take longer to repay your debt, but your monthly payments will be lower.
How Much is the Average Student Loan Payment?
In 2019, the average borrower paid between $200 and $299 a month on their student loan. The amount paid also depends on the type of degree earned, as the more education one receives, the costlier a student loan is. The average payments made on student loans, by degree, are as follows:
- An Associate’s degree: Just under $400
- A Bachelor’s degree: Just over $500
- A Master’s degree: Just under $700
- A Doctorate: Just over $800
- A professional degree: Just over $800
Seeing just how high student loan monthly payments can be, it is no wonder that collectively, 42.9 million people throughout the country owe $1.56 trillion in federal student loan debt alone, according to the Department of Education. Fortunately, there are ways you can pay off your student loans sooner, and become free of the burden of debt.
Limit Borrowing
It is tempting to take out as much student loan debt as you are approved for, but it is essential that you only borrow the actual amount you need. The fewer student loans you take out, and the lower the amounts are on those loans, the faster you will be able to repay the debt. Another way to limit the amount you have to borrow is to consider what type of post-secondary institution you will attend. The difference in cost of attending a public school versus attending a private institution is tens of thousands of dollars.
Applying for scholarships can also help offset the cost of school and therefore, the number of student loans you have to take out. Even small scholarships that provide even just $1,000 will make a significant difference in the amount of time it takes to repay your student loan. If you can earn a scholarship, no matter how big or little, it will reduce the amount of your student loan, and the interest that you pay on it. Speaking of interest, if you can pay the accruing interest on your student loan while you are still attending school, even though it is not usually required, that can also reduce the amount of time it takes to repay your loan.
Pay More than Required
As with all debts, it is always better to pay more than the required minimum payment when repaying your student loans. If you can increase the amount you pay every month, even slightly, you will gradually chip away at the principal balance and can pay off your student loan faster. Also, if you get a raise or some other type of windfall, paying that towards your student loan can also reduce your balance, allowing you to repay the loan sooner.
When making additional payments, make sure you speak to the servicer of the loan first. You need to make sure that the extra payment will be applied to the principal balance, and not the interest you owe or the payment for the next month.
Apply for Loan Forgiveness
Sometimes, repaying your student loan is simply not possible and when that is the case, you should look into many of the student loan forgiveness programs that are available today. Some employers offer student loan forgiveness options, military student loans are often eligible for a certain amount of forgiveness, and the Public Service Loan Forgiveness program is another option available for many. If you have chosen an income-driven repayment plan, you may also qualify for the remainder of your loan to be forgiven after you have made payments for 20 to 25 years. Certain volunteer programs also offer student loan forgiveness for those who serve with them.
It is important to research any student loan forgiveness program you are considering. These programs typically have eligibility requirements depending on the number of payments you will make towards your student loan while in the program, the field you work in, and the timeliness of your loan payments.
Have Trouble Repaying Your Student Loan? Our Debt Defense Lawyers in Fort Lauderdale Can Help
Student loans are a big problem throughout Florida and the entire country. If you cannot repay yours, it is important to know that you have options. At Loan Lawyers, our Fort Lauderdale debt defense attorneys can explain what they are, so you become debt-free as quickly as possible. Call us now at (954) 523-4357 or reach out to us online to schedule a free consultation.
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