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Many people aspire to live a “debt-free” life. And for good reason: Getting out of debt means that your take-home pay is your own (since you won’t be sharing any of it with creditors). Having more money to work with can help you achieve your goals, whether it’s opening a bank account and socking away an emergency fund, sending your kids to college, or being able to retire some day. Knocking down debt can also improve your day-to-day life by relieving stress and boosting your mental health.

The question is, how do you get there? If you’re currently living under a mountain of student loans, credit card debt, medical debt, and/or other types of debt, it can be hard to see a way out or, frankly, even a ray of sunlight. But don’t give up. We’ve got six ideas that can help you whittle down your debt and get on the road to financial independence and freedom.

What Does Getting Out of Debt Really Mean?

Living “debt-free” can mean different things to different people. In the purest sense, being debt-free means having absolutely zero debt — including no credit card debt, no car or student loans, and no mortgage.

Some people who ask “How do I get out of debt?” subscribe to a looser definition of “debt-free.” In this scenario, you’re free of so-called “bad debt,” such as high-interest credit cards and payday loans, but you might have some “good” debt.

A low-interest mortgage or student loan, for example, can be considered good debt, since it can help you increase your net worth or generate future income. This looser definition may work to your advantage because it allows you to achieve milestone goals like owning a home without high-interest debt burdening your monthly finances.

“I Am Debt Free” The True Benefits of Financial Freedom

However you define debt-free living, knocking down your debt comes with a wide range of benefits — some expected and some, perhaps, surprising.

•   More money to spend: Interest charges eat away at your income, giving you less money for other things. Once you pay off your debts (particularly those with high interest rates), you’ll have more money in your pocket.

•   Financial stability: By freeing up cash, you’ll have money available to build your emergency fund (your best defense against running up costly debt in the future). You’ll also be able to put money toward other goals and investments.

•   Less stress and anxiety: Dealing with debt isn’t just a financial challenge — it also impacts mental health. In a Forbes Advisor survey, 54% of adults said they often or always feel stressed by their debt circumstances; another 32% said they sometimes feel stressed because of their debt.

•   A happier marriage: In the Forbes survey, 60% of respondents said financial stress has led to disagreements in their relationships. Money fights are a common cause of divorce.

•   Increased self-esteem: Eliminating debt isn’t easy — it takes hard work, discipline, and determination. Reaching your debt payoff goals can give you a huge sense of accomplishment that leads to greater self-confidence.

How to Get Out of Debt Fast: 6 Proven Strategies

Having a lot of debt can feel overwhelming. The key to being able to say “I am debt free” is to approach it one step at a time. Here are six strategies that can help.

1. Build a Workable Budget

A smart debt-payoff plan begins with a realistic budget. Having a basic budget will help you live within your means (so you don’t get into more debt) and free up extra cash to put toward your debts each month.

The first step in creating a budget is understanding your monthly expenses. This includes everything from rent or mortgage payments, utility bills, groceries, and transportation costs to smaller expenses like subscriptions, leisure activities, and dining out. By assessing your expenses over the last several months, you may be surprised by how much you are spending in certain categories. You may also immediately find some places to cut back, such as canceling membership to a gym you rarely use and/or giving up streaming services you rarely watch.

If the idea of tracking every penny has been a barrier to budgeting, or if you’ve tried and failed in the past, try keeping things simple. The 50/30/20 rule is a simplified budgeting strategy that’s gained traction because it limits the number of spending categories you need to establish and track.

With this approach, you divide your take-home pay (what’s left after paying taxes) into three buckets:

•   50% goes to needs, including minimum debt payments

•   30% goes to wants

•   20% goes to savings and debt payments beyond the minimum

Keep in mind that these percentages are just a guideline, and can be tweaked to fit your situation. The key to becoming debt-free is to make a budget that’s strict but still doable.

Recommended: What Is the 10 Percent Credit Card Interest Rate Cap Act?

2. Increase Your Income With a Side Hustle or Raise

Yes, this is easier said than done. But before rolling your eyes and moving on, consider the possibilities. Is it time for a pay raise? If a bump is overdue, it might be the moment to have a talk with the boss.

Consider any potential ways to make extra income from home. Do you always have nights or weekends off? Maybe a friend does catering, landscaping, house painting, or some other work and could use an extra hand from time to time.

If you have a marketable skill, like website design or creating social media content, you may be able to pick up freelance work. If you’re crafty, you might look into selling your wares online or at craft fairs and flea markets. If you love animals, you might want to offer dog walking or cat sitting services.

If you could earn an extra $500 per month, in 12 months, you’d be able to pay off thousands of dollars of debt. Even selling things you no longer need can bring in a nice lump sum of cash that you can use to knock down debt.

3. Apply Any Windfall To Your Principal

If you get an unexpected windfall (such as a bonus at work, cash gift, tax refund, or inheritance), instead of living it up while the money lasts, consider using it to pay down some debt.

You might not think a few hundred dollars will make much of a dent, but every dollar you pay over the minimum can help reduce the interest you owe on a credit card or loan.

To get some idea of how paying even a little extra toward a bill can help, consider playing around with the numbers using a credit card interest calculator. It can be scary to see how much money you’ll pay in interest if you continue to pay only the monthly minimum, but it can also motivate you to divert as much extra money as you can toward getting that debt paid off once and for all.

4. Be Strategic About Choosing a Payoff Method

Seeing progress can be inspiring. Think about how good you feel when you lose a little weight from changing your diet or gain some muscle from working out. Even small wins can be motivating.

How does that apply to downsizing your debt? Two of the commonly recommended approaches to debt repayment are the snowball and avalanche methods. These strategies focus on making extra payments toward one balance at a time instead of trying to put a little extra money toward all your balances at once.

The Snowball Debt Payoff Method

The snowball method directs any excess free cash you might have to the debt with the smallest outstanding balance. Here’s how it works:

•   List all of your outstanding debts based on how much you owe, from the smallest balance to the largest. (Disregard interest rates.)

•   Pay as much as possible toward the debt with the smallest balance, while making the minimum payment on all other debts (staying on track with the minimums will help you maintain a good credit score).

•   After you pay off the smallest debt, turn your attention to the next-lowest balance. Keep going until you are debt-free.

The Avalanche Debt Payoff Method

The avalanche method focuses on paying off debts based on interest rate. It can take longer to get a win with this approach but, ultimately, it will save you more money than the snowball method. How it works:

•   List your debts in order of interest rate, from highest to lowest. (Disregard balance amounts.)

•   Pay as much as you can each month toward the debt with the highest interest rate, making the minimum payments on all other debts.

•   Once you’ve paid off the highest-interest debt, focus on the debt with the next-highest rate, and so on, until you’re debt free.

Though the methods are different, both plans provide focus, and as each balance disappears, momentum grows.

A newer approach, the fireball method, may be a better fit for modern-day debt, which could include a large amount of low-interest student loan debt.

The Fireball Debt Payoff Method

The fireball method takes a hybrid approach to the traditional snowball and avalanche strategies. It’s called “fireball” because it can help blaze through bad debt faster by making it a priority. How it works:

•   Categorize all debts as either “good” or “bad.” “Good” debt generally refers to things that can increase your net worth, such as a student loan or mortgage. (Interest rates under 6% could be considered good debt.)

•   List “bad” debts from smallest to largest based on each bill’s outstanding balance.

•   Funnel any extra cash each month toward the smallest balance on the “bad” debt list, while making the minimum monthly payment on all other debts. Once that balance is paid in full, move on to the next-smallest balance on that list. Keep blazing until all “bad” debt is repaid.

•   Pay off “good” debt on the normal schedule while you also save for your goals for the future. Apply everything you were paying toward “bad” debt to investing in a financial goal.

The fireball approach can help you save money because it gets rid of your more expensive debt first, but it also provides motivation by giving you wins early in the process. These combined elements could provide an extra boost to your efforts.

💡 Quick Tip: Want a simple way to save more each month? Grow your personal savings by opening an online savings account. SoFi offers high-interest savings accounts with no account fees. Open your savings account today!

5. Streamline Payments by Consolidating Debts

If your credit is strong, a debt consolidation loan could potentially help you repay your debts at a lower interest rate, saving you money over time. It also simplifies repayment by merging multiple payments into one. With this approach, you take out a personal loan and use it to pay off multiple high-interest debts. The key is to find a lender that is willing to give you a lower annual percentage rate (APR) than what you’re currently paying. Keep in mind that the shorter your loan term, the lower your APR may be.

Another way to consolidate credit card debt is to move it to a balance transfer credit card. This can be a smart move if you can qualify for a 0% intro credit card. This way, you can avoid paying interest for the first several months and all the money you pay toward the card goes to knocking down debt. Keep in mind, though, that you may have to pay a fee when utilizing a balance transfer credit card. And, once the 0% intro period is over, you’ll have to start paying interest on the remaining balance.

6. Negotiate Lower Rates With Your Creditors

If your debt has become too much to handle and you’re delinquent on payments, you may want to reach out to your creditors, explain your financial situation, and see if they may be able to negotiate your credit card debt. They might be willing to set you up on a payment plan, reduce your monthly payments, or settle your debt for less than what’s owed.

If you go this route, be sure to take notes on your conversation with the customer service rep (including the name of the person you spoke with, when you called, and what they said) and get the proposed repayment or debt settlement plan in writing before you make any payments.

Also keep in mind that debt settlement can negatively impact your credit, so this option is generally considered a last resort.

Recommended: Round Up Your Spare Change Into Savings

How Can I Get Out of Debt If I Am Completely Overwhelmed?

Sometimes it can feel hard to get a handle on debt and, for some people, even following the advice above might be difficult. If that sounds familiar, or if you have a pattern of digging yourself out of debt with one hand while acquiring new debts with the other, you might need to call a pro.

Look Into Credit Counseling Agencies

A credit counseling agency can help you negotiate with creditors and also plan for a future in which you avoid acquiring an unhealthy level of debt. Sometimes these financial advisors charge a small fee. At other times, the services are offered through a nonprofit organization. Many credit counseling agencies also offer group learning opportunities, such as financial management workshops.

Watch Out for Debt Relief Scams

Use caution when seeking out credit counseling as an online search can easily pull you into the world of debt relief scams. These services falsely promise to negotiate to lower debt. A key warning sign is a high upfront fee. Often, these scammers specialize in targeting those with certain types of debt, such as auto loans, mortgages, and even tax bills. Many consumers pay the upfront fee and then find their debts unresolved. Also watch for services that offer to “repair” a bad credit score. Your best defense against credit score damage is good financial habits.

Debt Settlement vs. Credit Counseling: What’s the Difference?

The Takeaway

Everyone wonders how to get out of debt fast. When it comes to debt, though, the deeper the hole you’re in, the longer it may take to climb out. But having the right plan in place before can help stick to a budget and methodically reduce your debt in a way that keeps you motivated and saves you money.

Becoming entirely (or nearly) debt-free comes with a substantial payoff: The money you were once spending on debt repayment each month can now go toward savings — and an opportunity to earn, rather than pay, interest.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with eligible direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

FAQ

How fast can I realistically get out of debt?

How quickly you can shake off your debt burden will depend on how much you owe, your interest rate(s), and the amount of money you have available to pay down debt. Getting a debt consolidation loan can help you pay off creditors sooner. Once you submit a loan application, approval can take as little as one business day and, once approved, funds could be available to pay off debt within one to three business days.

Is it better to pay off my debt or save money first?

Pay off high-interest debt such as credit card debt before you focus on saving money. Also make at least the minimum payment required on all your debts, including lower-interest debt such as mortgage debt or student loan debt, so that your credit score isn’t damaged by missed payments.

How can I get out of debt if I have no extra money?

If you have no money to put toward paying down the principal on your debt, you’ll probably need to take a two-pronged approach: Carefully review your monthly earnings and expenses. Can you ask for a raise or take on more hours at your job? Could you get a roommate and bike to work to save on gas? Then, reach out to your creditors to ask for relief in the form of reduced monthly payments, a lower interest rate, or even debt settlement. Seek help from a credit counseling agency if you don’t feel you can go it alone.

Will negotiating with my creditors hurt my credit score?

If negotiation with a credit results in a debt settlement, in which you pay less than you owe in exchange for being freed from the debt, your credit score will suffer. The negative effect will linger for seven years. But given the alternatives to debt settlement — such as defaulting, declaring bankruptcy, or enduring repeated calls from collection agencies — settling your debt might be the best outcome.

What is the fastest strategy to pay off credit card debt?

The quickest way to pay off credit card debt is to get a debt consolidation loan. This type of personal loan typically has a lower interest rate than credit cards, so you could save money on interest over the long haul. Once the loan is funded, you can immediately pay off your credit card debt. You’ll then make monthly payments to pay off the loan.

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SOBNK-Q226-137

Paying off a mortgage early, if doable, seems like the smartest plan in the world. But the question remains: Should you pay off your mortgage early? Dedicating most of your money to a home loan means you may not be able to fund your business, investments, a college fund, an emergency fund, travel, or fun purchases.

There are a lot of scenarios where your money may be put to better use elsewhere.

Here’s what to consider before you decide to go all-in on paying off your mortgage early.

When Should You Pay Off Your Mortgage Early?

Sometimes, paying off your mortgage early could make sense. For example:

You Have a Rainy Day Fund

You have emergency savings, the 3-6 months of living expenses in reserve that experts recommend.

And your college savings plan, if that’s a need, is funded.

You’re Funding Your Retirement

You’re contributing the max to your 401(k), IRA, and other retirement accounts. If that’s not the case, you may want to do that before paying off the mortgage.

You Want to Reduce Monthly Expenses Ahead of Retirement

If a mortgage takes up a large portion of your monthly expenses, it may make sense to eliminate the mortgage payment if you know you’re going to be on a limited income soon (such as retirement).

You Want to Save on Interest Costs

Take a look at the loan you signed, or any mortgage calculator tool for that matter. On many standard 30-year loans, you may pay just as much or more in interest as you do in principal. Paying off a home mortgage loan early could save you a lot of money in interest over the life of a home loan.

Reasons to Hold Off on Paying Off Your Mortgage Early

If you’re in the fortunate position of contemplating paying off your mortgage early, there are a few reasons to rethink doing so.

Investment Offers Possibility of Higher Return

If investments provide a return greater than the interest rate you’re paying on your mortgage, it may not make sense to pay off your home loan right now. Remember, past performance doesn’t guarantee future returns, so you’ll want to periodically evaluate how investments are performing against your mortgage interest rate. Many investments also have better liquidity than a mortgage. However, you’ll want to make sure to consider your risk tolerance and investment objectives when deciding to invest instead of paying down your mortgage.

What about buying a rental property instead of paying off a mortgage? Purchasing investment property could generate cash flow, and adding to a real estate portfolio is one way to build generational wealth.

You Still Have High-Interest Debt

Mortgages tend to have much lower interest rates than credit cards do. If you’re a “revolver” who carries balances from one month to the next or in a family of revolvers, paying off that debt first makes sense.

Nearly half of U.S. families report carrying revolving credit card balances, and the average revolving balance per cardholder is about $6,500-$6,800, according to recent data.

How to Pay Off Your Mortgage Early

If paying off your mortgage makes sense for your financial situation, it’s helpful to know how to pay off your mortgage early. A handful of strategies may work for different types of mortgages.

Biweekly or Extra Monthly Payment

One strategy homeowners use to pay off their mortgage early is to pay biweekly. If you pay every two weeks instead of monthly ($1,000 every two weeks, for example, instead of $2,000 a month), by the end of the year, you’ll have made a full extra payment. Mortgage servicers may charge fees if you do this, though.

If you want to get more aggressive, making an extra payment every month will decrease the principal quickly. You’ll want to make sure the payment is applied to principal only.

Paying a bit extra every month is one sure way to shrink total interest paid and the loan term. For a mortgage loan of $450,000 at a 5.60% fixed rate for 30 years, total interest paid would be about $480,005. Putting $400 more toward the mortgage payment every month would whittle total interest paid to approximately $355,000 — a savings of around $125,000. And the mortgage would be paid off in 23-24 years instead of 30 years.

Refinance to a Shorter Term

Changing a 30-year mortgage to a 15-year term with a mortgage refinance will likely result in a larger monthly payment (depending on how much you owe) but a substantial amount in interest savings.

With a shorter mortgage term, payments eat into the principal more quickly. If you stack extra payments on top of a 15-year mortgage, you’ll quickly decrease your loan balance on your way to a paid-off mortgage. Refinancing doesn’t have to happen with your current lender, so consider shopping for a mortgage to see what rate and terms you can get if you’re going this route.

Recast Your Mortgage

Recasting your mortgage involves making a large lump sum payment toward the principal and having your lender reamortize the mortgage. Your monthly mortgage payment will be recalculated based on how much you owe after the large payment. The term and interest rate will stay the same.

With a recast, you don’t have to go through the loan application process, and the administrative fee is usually around a few hundred dollars.

To decide on a mortgage recast vs. refinance, weigh the pros and cons of each.

Make Lump-Sum Payments

Making lump sum payments will go far toward paying down your mortgage. Just make sure the payments go directly toward the principal.

Get a Loan Modification

A loan modification alters the terms of your original loan to make it more affordable, often by adjusting the interest rate or extending the loan term. This mortgage relief option is reserved for those experiencing financial hardship.

Changes to the terms of the mortgage are designed to potentially lower the mortgage payment so that the homeowner avoids foreclosure. Talk to your lender if you’re thinking about going this route.

Recommended: Home Loan Help Center

The Takeaway

Paying off your mortgage early is a lofty goal, but if you have other financial needs or can make a better return elsewhere, it may make sense to keep your mortgage. Make sure you consider all options before you make your decision.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

FAQ

Do property taxes go up when you pay off your mortgage?

No. Property taxes don’t change based on whether or not you’ve paid off your mortgage. If you do pay off your mortgage, it might seem like you’re paying more because you’ll pay taxes all at once or in a couple of larger installments.

What happens to escrow when you pay off your mortgage?

When a mortgage is paid off, an escrow account, if one was in place, is closed, and any remaining funds are returned to the homeowner. They then become responsible for paying property taxes and insurance directly. If there’s extra money in the escrow account, it will be sent back to the homeowner when the mortgage is paid off, and the escrow account is closed.

How does paying off your mortgage early affect your credit score?

Your credit score won’t be greatly affected by paying off your mortgage early. The account will remain on your credit for 10 years as a closed account in good standing.

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SOHL-Q226-100

Pharmacists graduate from college with a well-earned degree, but also with a lot of student loan debt. According to the latest data from the American Association of Colleges of Pharmacy, the average student loan debt for pharmacy school graduates is $178,642.

Fortunately, there are a variety of loan forgiveness programs for pharmacists. Depending on where you work and the type of service commitment you’re able to make, you could qualify for partial or even full pharmacist loan forgiveness.

Read on to learn about the federal student loan forgiveness programs for pharmacists, plus other ways to help repay your loans if you don’t qualify for pharmacist student loan forgiveness.

Can Pharmacists Get Loan Forgiveness?

It may sound too good to be true, but there is such a thing as pharmacist loan forgiveness. Many of the loan forgiveness programs for pharmacists are available at the federal level, while others are offered by states. And while some programs pertain only to federal student loans, others also cover private student loans.

Recommended: Student Loan Refinancing Guide

6 Student Loan Forgiveness Programs for Pharmacists

Here are some of the top federal student loan forgiveness programs for pharmacists, along with their eligibility requirements.

Public Service Loan Forgiveness (PSLF)

The Public Service Loan Forgiveness (PSLF) program forgives the remaining balance on federal Direct loans, which include Direct Subsidized loans, Direct Unsubsidized loans, Direct PLUS loans (but not Parent PLUS loans), and Direct Consolidation loans.

Qualifying borrowers can get PSLF after making the equivalent of 120 qualifying monthly payments under an income-driven repayment (IDR) plan while working full-time in public service for an eligible employer such as a federal, state, local, tribal, or military government organization or a qualifying nonprofit.

If you are a pharmacist working for one of these organizations and have eligible loans, you may qualify for PSLF. To apply, sign up for an IDR plan at StudentAid.gov if you aren’t already enrolled in one. Then certify your employment — there is a form your employer needs to fill out — and submit it electronically. The PSLF Help Tool can assist you through the process.

Next, you’ll need to make 120 qualifying payments toward your student debt under the IDR plan. Once you do that, you can submit your application for forgiveness.

State Loan Repayment Program (SLRP)

Through the State Loan Repayment Program (SLRP), the Health Resources and Services Administration provides grants each year to states for loan repayment programs for primary care providers, including pharmacists, who work in shortage areas. The loan repayment is up to $37,500 per year and covers qualifying federal and private student loans.

To be eligible, an individual must be a U.S. citizen or U.S. national, have a health license or certificate in the state in which they are working, and be currently employed full-time at an eligible site. Check with your state for more information and detailed requirements.

NHSC Loan Repayment Programs

The National Health Service Corps (NHSC) has a variety of different loan repayment programs for health care providers who work at specified health sites, typically in underserved communities, for a certain period of time.

For pharmacists, the programs available include:

•   The NHSC Substance Use Disorder Workforce Loan Repayment Program, which provides up to $75,000 in loan repayment for medical professionals, including pharmacists, who treat substance use or opioid use disorders and work full-time for three years at an NHSC-approved treatment facility in an underserved community

•   The NHSC Rural Community Loan Repayment Program, which offers up to $100,000 in loan repayment for medical professionals who treat substance use or opioid use disorders in a rural, underserved community full-time for three years

In addition to the requirements mentioned above, to be eligible for either program, applicants must be U.S. citizens or U.S. nationals and have the appropriate professional health license or certificate.

National Institutes of Health Loan Repayment Programs

The National Institutes of Health (NIH) loan repayment programs are designed to recruit and retain highly qualified health professionals in biomedical and biobehavioral research careers. Because of the high cost of education, these individuals often leave research to go into private industry or practice.

The NIH loan repayment programs may help health professionals, including pharmacists, by repaying up to $50,000 in qualified education debt in exchange for either extramural (not employed by the NIH) or intramural (employed by the NIH) status.

To be eligible, you must be a U.S. citizen, U.S. national, or permanent resident with a qualifying degree and have total qualified educational debt equal to or in excess of 20% of your institutional base salary. You must also meet qualified research requirements and research funding requirements, depending on whether you have an extramural or intramural position.

Indian Health Service Loan Repayment Program

The Indian Health Service (IHS) Loan Repayment Program can help qualifying individuals, including pharmacists, repay their health profession education loans for up to $50,000 in exchange for a two-year service commitment in health facilities that serve American Indian and Alaska Native communities.

You may qualify if you:

•   Are a U.S. citizen

•   Are registered for Selective Service (if you are male)

•   Have a health profession degree or are in your final year

•   Have a pharmacy license

•   Commit to practice at an Indian health facility

You must also begin service on or before September 30 for two continuous years of practice. You can extend your contract annually until your student debt has been paid off.

Health Resources and Services Administration Faculty Loan Repayment Program

Individuals who come from a disadvantaged background, have an eligible health profession degree or certificate, including a pharmacy degree or certificate, and are a faculty member at an approved health professions school with a contract for two years or more working full- or part-time may qualify for loan repayment through the Health Resources and Services Administration faculty loan program.

If you are eligible, you could receive up to $40,000 in loan repayment assistance for qualifying educational loans, plus funding to offset the tax burden of the award.

What to Do If You Don’t Qualify for Pharmacist Student Loan Forgiveness

If you don’t qualify for pharmacist student loan forgiveness, there are still ways to make repaying your student loans easier. Below are two options to consider.

Income-Driven Repayment

Income-driven repayment (IDR) plans base your monthly student loan payment amount on your income and family size, which can help lower your payments. The remaining balance will be forgiven by the end of your repayment period, which is either 20 or 25 years, depending on the plan.

The federal government offers the following types of income-driven repayment plans:

•   Income-Based Repayment (IBR) plan: Under the IBR plan, a borrower’s monthly payments are generally equal to 15% of their discretionary income.

•   Saving on a Valuable Education (SAVE) plan: Under SAVE, borrowers with a $12,000 principal balance or less and who made 10 years of monthly payments would receive loan forgiveness. However, the SAVE plan has been blocked in court, and it has been terminated as of 2026 due to a federal court ruling. Borrowers who were already enrolled in SAVE were placed in forbearance, but interest started accruing on their loans again in August 2025. The Department of Education has announced that loan servicers will begin notifying SAVE borrowers in July 2026 that they have 90 days to enroll in a different repayment plan or else they will be automatically reassigned.

•   Pay As You Earn (PAYE) repayment plan: With PAYE, payments are generally equal to 10% of your discretionary income. While the PAYE Plan was closed to new enrollment in July 2024, it was reopened to new enrollment in mid-December 2024. It also offers credit to eligible borrowers enrolled in the SAVE plan toward Public Service Loan Forgiveness (PSLF) and IDR plans once they get out of forbearance and enroll in PAYE. However, PAYE will be sunsetted by July 2028.

•   Income-Contingent Repayment (ICR) plan: The ICR plan offers monthly payments that are either the lesser of what you would pay on a repayment plan with fixed monthly payments over the course of 12 years, adjusted based on your income, or 20% of your discretionary income. ICR was also closed in July 2024 but was reopened to new enrollment in December 2024. It will be fully eliminated by July 2028.

You can apply for one of these income-driven repayment plans online through your loan servicer or by submitting a paper form. You can select the IDR plan you’d like or ask your servicer to choose a plan for you based on the lowest monthly payment possible.

Refinancing

If an IDR plan isn’t right for you, you may want to explore refinancing student loans to save money. When you refinance student loans, you replace your old loans with one new loan from a private lender. Ideally, your new loan would have a lower interest rate or a more favorable loan term.

With student loan refinancing, you can refinance federal student loans, private student loans, or both. However, be aware that when you refinance federal loans, they become ineligible for federal benefits, such as income-based repayment plans and forgiveness.

A student loan refinancing calculator can help you determine if refinancing makes sense financially for your situation.

The Takeaway

Pharmacists who are struggling to repay their federal student loans may be eligible for any one of a number of different student loan forgiveness programs or loan repayment programs to help them tackle their debt.

And those aren’t the only options for potential relief: Borrowers who don’t qualify for these programs can consider income-driven repayment plans or student loan refinancing to help manage their student loan payments.

Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.

FAQ

How can I get 100% federal student loan forgiveness?

The Public Service Loan Forgiveness (PSLF) program, income-driven repayment (IDR) plans, and a total and permanent disability (TPD) discharge could eliminate the remaining balance on your federal student loans if you qualify. You may also receive a full discharge if your school made a substantial misrepresentation or omission, if a breach of contract has occurred, or if your school violated the law.

How long does it take to pay off a student loan?

It depends on your repayment plan and loan term. For a standard repayment plan, it can take 10 years, or 30 years for consolidation loans. An extended repayment plan can take up to 25 years.

What if I never pay off my student loans?

Missing a payment for your loan could result in late fees, meaning you’ll have to pay even more overall. Repeatedly missing payments may also damage your credit score, which will make it more difficult to secure a loan and may lead to wage garnishment.

About the author

Melissa Brock

Melissa Brock is a higher education and personal finance expert with more than a decade of experience writing online content. She spent 12 years in college admission prior to switching to full-time freelance writing and editing. Read full bio.

Photo credit: iStock/PeopleImages

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