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If your federal student loan debt is high compared to your income, an income-driven student loan repayment plan may be an option to consider.

Income-driven repayment (IDR) plans base your monthly payments on your income; family size also factors in. Due to recent legislation, options for income-driven plans have changed, and more changes are expected in the next two years.

Read on to learn about student loan income-based repayment — including the repayment plans currently available and what will be changing — to help decide if an IDR plan might be right for your situation.

What Is an Income-Driven Repayment Plan?

Income-driven student loan repayment plans were designed to ease the financial hardship of federal student loan borrowers and help them avoid default when struggling to pay off student loans. Those who enroll in the plans tend to have large loan balances and/or low earnings.

The idea is straightforward: Pay a percentage of your monthly income above a certain threshold for up to 30 years. On the Income-Based Repayment (IBR) plan and the new Repayment Assistance Plan (RAP), you are then eligible to get any remaining balance forgiven.

Income-driven repayment plans are also the only repayment options that will help you qualify for the Public Service Loan Forgiveness program. (Standard Repayment also qualifies for borrowers with loans disbursed before July 1, 2026, but they probably wouldn’t have any debt left to forgive after the 10-year term.)

As of March 2026, about 12.9 million borrowers were enrolled in an income-driven repayment plan.

How Income-Driven Plans Differ from Standard Repayment

The three income-driven repayment plans currently available for borrowers with loans taken out before July 1, 2026 (IBR, Pay As You Earn, and Income-Contingent Repayment), adjust your monthly student loan payment in accordance with your discretionary income and family size. They also extend your loan terms to 20 or 25 years. These plans are meant to provide relief for borrowers who have trouble affording payments on the Standard Repayment Plan, and payments for some borrowers may be as low as $0. If your income changes, your monthly payments will change along with it.

On the new RAP plan, your payments are based on your adjusted gross income (AGI), with a term of up to 30 years.

Your loans do accrue interest on an income-driven plan, but the IBR and RAP plans offer some relief. Specifically, the government will pay any interest charges that your monthly payments on IBR don’t cover on subsidized loans for up to three years. However, you’re responsible for all the interest after this three-year period. You always have to pay the interest that accrues on unsubsidized loans. On RAP, the government will cover any unpaid interest that your loan payments don’t cover each month.

By contrast, the Standard Repayment Plan, which is available for borrowers with loans taken out before July 1, 2026, doesn’t calculate your monthly payments based on your income. Instead, it gives you a fixed monthly payment based on a 10-year repayment term (or a 10- to 30-year term for Direct Consolidation Loans). By making this payment each month, you’ll pay off your full balance at the end of your term. The minimum payment on the Standard Plan is $50.

On the new Tiered Standard Plan for borrowers with loans disbursed on or after July 1, 2026, monthly payments are fixed, with repayment terms ranging from 10 to 25 years, based on the total student loan balance. The minimum payment on this plan is also $50.

Federal student loans automatically go on Standard Repayment or Tiered Standard unless borrowers apply for an alternative plan. If you prefer an income-driven plan, you can apply for it on the Federal Student Aid (FSA) website.

Types of Income-Driven Repayment Plans

There are currently several income-driven repayment plans available. Which plan a borrower may be eligible for depends on when they took out their loans. Here’s a closer look at each plan.

RAP Plan (new Repayment Assistance Program)

The Trump administration’s “One Big Beautiful Bill” created the RAP program and it was implemented in July 2026. Borrowers with loans taken out before July 1, 2026 will be able to access RAP or IBR, while borrowers with loans disbursed on or after July 1, 2026 will only have RAP or the new Tiered Standard Plan.

While the existing IDR plans use discretionary income, the new RAP bases your payments on your adjusted gross income (AGI). Depending on your income, you’ll pay 1% to 10% of your AGI over a term that spans up to 30 years.

If you still owe money after 30 years, the rest will be forgiven. The government will cover unpaid interest from month to month, as well as make sure your loan’s principal goes down by at least $50 each month.

All borrowers are required to pay at least $10 per month on RAP. This plan may offer lower monthly payments than the current IDR options, but borrowers could also pay more interest over the life of the loan due to the longer repayment term.

Income-Based Repayment Plan (IBR)

While most of the pre-existing income-driven repayment plans will close in the coming years, IBR will remain open and available to current borrowers. If you’re currently on PAYE or ICR, for example, you have the option of switching to IBR before your plan gets shut down.

On Income-Based Repayment, borrowers pay 10% of their discretionary income each month on a 20-year term if they first borrowed after July 1, 2014. If they borrowed before that date, their monthly payment percentage will be 15% and their repayment term will be 25 years.

IBR will forgive your remaining balance if you still owe money at the end of your term. PAYE and ICR no longer offer loan forgiveness, but you can get credit for your PAYE and ICR payments if you switch to IBR.

Income-Contingent Repayment Plan (ICR)

The Income-Contingent Repayment plan sets borrowers’ payments to 20% of their discretionary income and has a repayment term of 25 years.

ICR is currently available to borrowers with loans taken out before July 1, 2026, but it is scheduled to close. Those on the ICR plan have until July 1, 2028 to switch to IBR or RAP. Otherwise, they will automatically be moved to RAP.

Pay As You Earn Repayment Plan (PAYE)

Like ICR, PAYE is currently available to borrowers with loans disbursed before July 1, 2026, but it’s set to close. Since PAYE will be shutting down, you’ll have until July 1, 2028 to switch to IBR or RAP or you will automatically be moved to RAP. Find out more about how PAYE compares to IBR.

To qualify for PAYE, you must be a new borrower as of October 1, 2007 and have received a Direct loan disbursement on or after October 1, 2011. Plus, you’re only eligible if your monthly payment on PAYE is less than what it would be on the Standard 10-year plan.

PAYE sets your monthly payments to 10% of your discretionary income and extends your loan terms to 20 years.

SAVE Plan (Saving on a Valuable Education)

The SAVE plan is no longer available and is ending. Introduced by the Biden administration in 2023, SAVE offered lower monthly payments and faster loan forgiveness than the other income-driven options.

The plan was struck down by legal challenges from Republican-led states, and SAVE borrowers were placed in an interest-free forbearance starting in the summer of 2024. However, due to recent court actions, borrowers on SAVE whose loans had been in forbearance must select a new payment plan and begin repaying their loans. The Education Department (ED) is encouraging borrowers to take action soon. If they don’t, ED says their loan servicer will place them in a new plan. Borrowers can find out more about IDR court plan actions on the FSA website.

Income-Sensitive Repayment Plan

The Income-Sensitive Repayment plan is open only to low-income borrowers with Federal Family Education Loans (FFEL). These loans are no longer available; the FFEL program ended in 2010. Direct loans, which replaced FFEL loans in 2010, are not eligible for this plan.

On Income-Sensitive Repayment, borrowers’ monthly payments increase or decrease based on their annual income. They will make payments on their loans for up to 10 years.

How Income-Based Student Loan Repayment Works

In general, with income-based repayment of student loans, borrowers qualify for lower monthly loan payments if their total student loan debt at graduation exceeds their annual income.

To figure out if you qualify for a plan, you must apply at StudentAid.gov and submit information to have your income certified. The monthly payment on your income-driven repayment plan will then be calculated. If you qualify, you’ll make your monthly payments to your loan servicer under your new income-based repayment plan for student loans.

You’ll generally have to recertify your income and family size every year or allow the ED to access your tax information and recertify for you. Your payments may change as your income or family size changes. As for how to recertify for income-driven repayment, you can do it online at the FSA website or by mail.

Pros and Cons of Income-Driven Repayment

IDR plans have advantages and disadvantages. Here are some potential benefits and drawbacks to consider as borrowers weigh their repayment plan options.

Pros

•   Borrowers typically gain more affordable student loan payments.

•   Any remaining student loan balance is forgiven after 20 or 25 years of repayment on the Income-Based Repayment plan or after 30 years on the Repayment Assistance Plan.

•   The plans provide forgiveness of any balance after 10 years for borrowers who meet all the qualifications of the Public Service Loan Forgiveness (PSLF) program.

•   Low-income borrowers may qualify for payments of $0, and payments of $0 still count toward loan forgiveness. On the new RAP option, the minimum monthly payment is $10.

•   The IBR plan and new RAP plan offer some interest benefits if your monthly payments don’t cover your full interest charges.

Cons

•   Stretching payments over a longer period means paying more interest over time.

•   While forgiven amounts of student loans were free from federal taxation until December 31, 2025, forgiven student loan debt under an income-driven plan in 2026 or later may be taxable (except for the PSLF program).

•   Borrowers in most income-based repayment plans need to recertify income and family size every year.

•   If a borrower gets married and files taxes jointly, the combined income may increase loan payments.

•   The system can be confusing to navigate, especially with all the legal challenges and recent legislation.

It’s worth noting that borrowers with private student loans are not eligible for federal income-driven repayment plans. Private student loan borrowers struggling to afford their monthly payments may wish to explore options that might help make repayment more manageable, such as student loan refinancing, especially if they may qualify for a lower interest rate. Borrowers could also inquire if their lender offers any kind of loan cancellation program (many private lenders don’t, but some do) or some type of short-term payment relief such as a temporary deferment.

Other Student Loan Repayment Options

Income-driven repayment plans aren’t your only option for paying back student loans. Here are a few alternatives to IDR plans that are currently available.

Standard Repayment Plan

The Standard Repayment Plan is available to borrowers with student loans that were disbursed before July 1, 2026. This plan has fixed monthly payments for up to 10 years (the term is 10 to 30 years for those with consolidation loans). This plan is designed so that by the end of a borrower’s term, their total debt will have been repaid.

Tiered Standard Plan

The Tiered Standard Plan replaces the Standard Repayment Plan for borrowers with federal Direct loans issued on or after July 1, 2026. Monthly payments on this plan are fixed. The repayment terms range from 10 to 25 years and they are based on the total student loan balance.

For borrowers with less than $25,000 in loans, the repayment term is 10 years; for loans from $25,000 to $49,999 the term is 15 years; for loans from $50,000 to $99,999, the term is 20 years; and for loans of $100,000 or more, the term is 25 years.

Graduated Repayment Plan

The Graduated Repayment Plan, which is available to borrowers with loans disbursed before July 1, 2026, spans 10 years for most loans, but it can go from 10 to 30 years for consolidation loans. On Graduated Repayment, monthly payments start out low and increase every two years. Like the current Standard Plan, borrowers will usually be out of debt at the end of your term. However, they will typically end up paying more interest on this plan. Graduated Repayment may be an option for borrowers whose income is low starting out but expect it to increase over time.

Extended Repayment Plan

Extended Repayment gives borrowers whose Direct loans were disbursed before July 1, 2026 up to 25 years to pay back their loans, but they must owe more than $30,000 and have borrowed after October 7, 1998. They can choose fixed or graduated payments. Their monthly payments will go down when they extend their term, but they will typically pay more interest overall with a longer term.

How to Qualify for Income-Driven Repayment

You can apply for income-driven repayment on the FSA website. The process typically takes about 10 minutes.

Here’s more on how to change your student loan repayment plan to an income-driven one.

Required Documentation

When you apply for an IDR plan, you can upload documentation verifying your income or allow the ED to access your tax information and import it into your application. Along with sharing your income, you’ll need to provide your mailing address, phone number, and email. If you’re married, you’ll also provide your spouse’s financial information.

Annual Recertification Process

Every year, you have to recertify, or update, your income and family size so your loan servicer can adjust your monthly payments accordingly. This recertification is required even if your income or family size hasn’t changed.

If you fail to recertify your plan, your servicer will no longer base your payments on your income. Instead, you’ll pay the amount you would on the standard 10-year plan. If you fail to recertify IBR, you’ll have the added consequence of interest capitalization, meaning your interest charges will be added to the principal balance of your loan.

You can recertify your plan on the Federal Student Aid website by uploading documentation of your income. Alternatively, you can allow the ED to access your federal tax information and automatically recertify your plan for you.

If you don’t give your consent for this (or aren’t eligible for auto-recertification), you’ll have to manually recertify your plan each year.

The Takeaway

Income-driven repayment may offer relief if you’re struggling to afford your monthly payments. These plans adjust your monthly student loans bills based on your income while typically giving you more time to pay back your debt. Plus, income-driven plans qualify for PSLF. A downside of IDR plans, however, is that you’ll likely pay more interest with an extended term.

The options for IDR have changed due to recent legislation from the Trump administration. Most of the current plans will be shut down, leaving just the Income-Based Repayment or Repayment Assistance Plan for borrowers with loans disbursed before July 1, 2026. And for borrowers with loans taken out after July 1, 2026, the new Repayment Assistance Plan is the only IDR plan available. Staying informed about these changes can be helpful as you decide if an income-driven repayment plan is right for you.

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.

With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

FAQ

Is income-based repayment a good idea?

For borrowers of federal student loans with high monthly payments relative to their income, income-based repayment may be a good idea because it could lower their payments. Just be aware that the income-driven repayment plans are changing and availability depends on when an individual borrowed their loans. Those with loans disbursed after July 1, 2026 have just one income-based plan available — the new Repayment Assistance Plan.

What is the income limit for income-based student loan repayment?

Generally speaking, there is no income limit to qualify for income-driven repayment plans. Some plans, such as the IBR plan, require that your monthly payments be less than what you’d pay on the standard 10-year plan. You’ll generally meet this guideline if your student loan debt is higher than your discretionary income or makes up a big portion of your income.

What are the advantages and disadvantages of income-based student loan repayment?

Generally speaking, the main advantage of these plans is lowering a borrower’s monthly payments, with the potential for eventual loan forgiveness on the IBR and RAP plans if all the rules are followed. Also, income-driven plans typically qualify for Public Service Loan Forgiveness (PSLF). A disadvantage of these plans is that it may take a borrower 20 or 25 years to repay their loans depending on the plan they’re on and how they owe. They will likely also pay more interest with a longer term.

How does income-based repayment differ from standard repayment?

With the Standard Repayment Plan, monthly payments are a fixed amount that usually ensures student loans will be repaid within 10 years. Under this plan, borrowers will generally save money over time because their monthly payments will be higher. With income-driven repayment, monthly loan payments are based on a borrower’s income, and family size factors in. These plans are designed to make payments more affordable. If you still owe a balance after 20 or 25 years on IBR, or after 30 years on RAP, the remaining amount is forgiven.

Who is eligible for income-based repayment plans?

With the PAYE and IBR plans, in order to be eligible, borrowers must have taken out loans before July 1, 2026, and their calculated monthly payments, based on their income and family size, must be less than what they would pay under the Standard Repayment Plan. Under the ICR plan, any borrower with eligible student loans disbursed before July 1, 2026 may qualify. Parent PLUS loan borrowers are also eligible for ICR if they consolidate their parent loans first. For the new RAP plan, borrowers with qualifying Direct loans are eligible.

How does the new RAP plan differ from income-based repayment?

Unlike the other income-driven repayment plans that base a borrower’s payments on 10% to 20% of their discretionary income, on RAP, payments are based on a borrower’s adjusted gross income (AGI). Depending on their income, a borrower on RAP will pay 1% to 10% of their AGI over a loan term of up to 30 years. Any remaining balance after that time will be forgiven. On the IBR plan, any remaining balance is forgiven after 20 or 25 years. On RAP, the government will cover unpaid interest each month; on IBR, the government will pay any interest charges that a borrower’s monthly payments don’t cover on subsidized loans for up to three years.

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This content is for educational and informational purposes only. The products, services, or features discussed may not currently be available via the SoFi platform. Any references to third-party products, services, or companies do not constitute an endorsement, recommendation, or solicitation by SoFi. Readers should independently evaluate their options and consider their individual financial needs and circumstances before making any decisions. ©2026 SoFi Technologies, Inc. All rights reserved.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

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No one plans for their student loans to outlive them. But as a borrower, it’s important to be aware of what happens to student loans when you die. There might be steps your loved ones need to take.

If you die before your federal student loans are paid off, your loans will typically be discharged (canceled), and your family will not be responsible for repaying them. However, with a private loan, that isn’t always the case. In certain instances there could be complications — especially if you have a cosigner on the loan.

Getting the facts now may help put your mind at ease. Here’s what can happen to your student loans after death.

What Happens to Federal Student Loans?

If you took out federal student loans, the loans will be discharged when you die. When a loan is discharged, the balance becomes zero and the government won’t try to collect on the loan.

Likewise, a federal Parent PLUS loan will be discharged if your parent dies or if you (the student on whose behalf your parent obtained the loan) die.

Make sure to provide your loved ones with the name of your loan servicer and your loan ID numbers. They would need to provide your servicer with that information along with confirmation of death, which is usually an original or certified copy of your death certificate.

The bottom line: If you have a federal student loan, you typically don’t need to worry about your relatives being burdened with the debt if you pass away.

Tax Implications of Federal Student Loan Discharge

If you are one of the millions of people with student loans in the U.S. and you die before your student loans are paid off, you might worry that there could be tax implications for the canceled or discharged amount of your loan.

However, as of September 2026, there is no federal tax burden once federal loans are discharged as a result of death.

It is possible that some states may impose taxes on the discharged loan amount after death. Because state tax laws may change frequently, it might be wise for your surviving family members to contact a tax professional to check on the current state guidelines.

What Happens to Private Student Loans?

The situation is different for borrowers with private student loans. According to the Consumer Financial Protection Bureau, private student lenders are not legally required to cancel private student loans for borrowers who die.

While some private lenders will cancel the loan upon the loan holder’s death, it typically depends on your lender’s policy and the loan agreement you signed. Make sure to read your loan agreement carefully to see what protections your lender offers. If you have questions, you might want to consult a lawyer.

In the case that the lender doesn’t discharge your loans after death, the lender would generally first try to collect the money from your estate. If you don’t have an estate, they would likely turn to your student loan cosigner, if you have one. If there isn’t a cosigner, then the lender may try to collect from your spouse.

Whether your spouse would be liable for the loan might depend on the state in which you live. If you reside in a community property state – Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin – and took out the student loan while you were married, it’s possible that your spouse could be responsible.

Recommended: Bankruptcy and Student Loans

What Happens If You Have a Cosigner?

Private loans often involve a cosigner to help strengthen a borrower’s financial profile. Data suggests that more than 90% of undergraduate private student loans are cosigned.

A key responsibility of a cosigner on a loan is that they agree to pay the debt if the primary borrower defaults, which means they are equally responsible for the loan. If you die, a private lender might seek to collect payment from the cosigner. However, some lenders may waive the remaining debt if the primary borrower dies. Check your loan agreement and the lender’s policies for details.

If you have a student loan cosigner and you want to release them from the responsibility, you could consider refinancing the loan in your name. This might be an option if your credit, income, and employment history have strengthened since you took out the loan, and you can now qualify on your own.

Recommended: Applying for a Student Loan Cosigner Release

Truth in Lending Act Protections for Cosigners

The Truth in Lending Act (TILA) protects student loan cosigners by requiring private lenders to provide clear and detailed disclosures upfront about loan terms, costs, and the responsibilities, both financial and legal, of cosigning the loan. This information must be provided before the loan is signed and finalized.

The cosigner and the primary borrower get 30 days to review the loan disclosures and accept or decline them. The lender cannot change the terms of the loan during this time.

What Can You Do to Protect Loved Ones?

To help ensure that what happens to student loans when you die doesn’t negatively impact your loved ones, there are a few things you can do. One course of action is to pay off your student loans faster, if possible.

You might do this by increasing the amount you pay every month, going above your minimum monthly payment, shortening the repayment term, or even getting a lower interest rate if you qualify, through student loan refinancing. Note that refinancing federal loans means losing access to federal programs and benefits like forgiveness and deferment.

Another option is to build a savings cushion or emergency fund that could be put toward your debt if you die. And finally, if you have a cosigner on your loans, you could apply for a cosigner release to relieve them of responsibility for the loans.

How Student Loan Refinancing Can Help

While you might think that student loans die with you, that is not always the case. But there are things you can do now, including releasing a cosigner you have on the loan, or repaying your loans faster to potentially help protect your loved ones.

Refinancing student loans is one option to consider to potentially speed up repayment, or possibly get a lower interest rate to help save money — which may leave less of a financial obligation behind.

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.

With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

FAQ

Do student loans die with you?

If you have federal student loans, the loans will typically be discharged, or canceled, when you die. However, if you have private student loans, the situation may be more complicated. Private lenders are not legally required to discharge student loans after death. While some private lenders do cancel loans after a borrower dies, it depends on the lender’s policy, whether there is a cosigner on the loan, and the loan agreement you signed. Read your loan agreement to find out what protections are in place in case of death, and contact the lender if you have questions.

Are student loans forgiven if you die?

If you have federal student loans, they are typically canceled, or forgiven, if you die. But that is not necessarily the case if you have private student loans. Private lenders are not legally required to cancel student loans. It generally depends on the lender’s policy and the loan agreement you signed as to whether the lender cancels the loans after death.

Does student loan debt reduce the value of my estate?

Federal student loans generally don’t affect the value of an estate, but private student loans might. Federal loans are typically discharged or canceled when a borrower dies, wiping out the debt. Private lenders are not legally required to cancel private student loans — it depends on the lender. If private loans are not canceled they could potentially impact the value of an estate.

How long does it typically take for a loan servicer to process a death discharge?

After receiving the required proof of death, which is typically an original death certificate or a certified copy, along with the person’s name, date of birth, Social Security number, and loan account number — it generally takes a lender 30 to 60 days (and sometimes up to 90 days) to process a death discharge.

What documents does a loan servicer require to discharge a deceased borrower’s student loans?

The documents a loan servicer requires to discharge a borrower’s student loans after death generally include an original death certificate or a certified copy, the person’s full name, their date of birth, their Social Security number, and then loan account number. You can contact the loan servicer directly to find out whether any additional information is needed.

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This content is for educational and informational purposes only. The products, services, or features discussed may not currently be available via the SoFi platform. Any references to third-party products, services, or companies do not constitute an endorsement, recommendation, or solicitation by SoFi. Readers should independently evaluate their options and consider their individual financial needs and circumstances before making any decisions. ©2026 SoFi Technologies, Inc. All rights reserved.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

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Large personal loans are typically defined as those in the range of $50,000-$100,000. Like personal loans of all denominations, the lump sum received for a personal loan can be used however you like: to pay off medical debt, say, or finance a major home renovation. They typically do so at a lower interest rate than would be charged if you used a credit card.

To understand whether this kind of loan is right for you, whether you would qualify for one, and how to apply, read on.

What Is a Large Personal Loan?

A large personal loan is exactly what it sounds like — a loan for a lot of money. There is no specific figure that makes a personal loan cross over into “large” territory. To one person, $50,000 might be a large personal loan. To another, it might be $100,000. But typically, it’s a number that’s well into the five-figures realm. Typically, lenders don’t offer more than $100K for a personal loan.

A large personal loan is a form of credit that can be used to make large purchases or consolidate other high-interest debts. Personal loans generally have lower interest rates than credit cards and are sometimes used to consolidate high-interest debt.

To start with the basics, a personal loan is defined as a set amount of money borrowed from a lending institution. Unlike a mortgage loan or auto loan, which is used for a specific purpose, funds from a personal loan can be used to pay for a variety of expenses such as medical bills, K-12 private education costs, or to consolidate multiple debts. Typically, however, you can’t use a personal loan for business expenses, and using personal loans for higher education tuition is usually prohibited.

How Do Large Personal Loans Differ From Other Personal Loans?

Personal loans function in the same way no matter their size because they are borrowed sums of money that are paid back with interest. This is true regardless of the amount of money borrowed.

However, there are some differences between larger personal loans and their smaller counterparts, depending on the lender you choose.

Small Personal Loans	Large Personal Loans
Loan amounts approximately $1,000-$5,000	Loan amounts approximately $50,000-$100,000
Including fees, may not be cost effective compared to larger loans	With good to excellent credit scores, applicants may qualify for low interest rates
Typically have shorter repayment terms	Repayment terms are typically longer

Interest Rate Considerations

You’ll likely want to compare personal loan interest rates. Different lenders may specialize in different sizes of loans, and their rates may vary depending on what they consider their sweet spot, so it can pay to shop around.

One key point: Don’t just look at the interest rate on a loan. The APR, or annual percentage rate, will give you a truer sense of what you will pay over the life of the loan. The APR includes fees (such as origination fees) and other factors, rolled in with the interest rate.

Term Length Options

The length of the loan term will impact your payments in a couple of ways. First, a longer loan period typically means you will have a lower monthly payment, which can be helpful in terms of your budget and cash flow.

However, a longer loan term also usually means you are paying more in interest over the life of the loan. Consider your options carefully to make sure you are getting the right deal for your situation.

How long do you usually have to pay off a personal loan? Two to seven years is common for personal loans in general, and, for larger loans, you may find terms of 10 or even 12 years.

When Is a Large Personal Loan a Bad Idea?

A large personal loan may be a bad idea if you already struggle with your current debts or monthly expenses.

When considering financing, it’s important to know both the pros and cons of a personal loan. Whether a loan may be beneficial for you depends on your unique financial situation. Here are some of the risks to consider:

•   If you fall behind on payments, your credit score could be negatively affected.

•   If you miss enough loan payments, your large personal loan may go to a collection agency. Some lenders will charge off a debt, meaning they have given up on being repaid, but you’re still legally responsible for the debt.

In the right situation, however, a large personal loan can be helpful. If you’re approved for the loan, you’ll have the funds to make a big purchase and can repay it over time. Those smaller, monthly installments mean that the burden is more manageable.

Top Uses for Large Personal Loans

One of the most useful features of personal loans is that they can be used for almost any purpose. Among the common uses of personal loans that are considered large are:

•   Medical debt

•   Home renovation projects

•   Debt consolidation

•   Wedding expenses

•   Vacations

•   Fertility financing

Recommended: $50,000 Personal Loan

What Are Common $100,000 Loan Qualification Requirements?

Typically, lenders have stricter requirements to qualify for a larger loan than one with a smaller limit.

Credit Score

Generally, you need a minimum credit score of 670 to qualify for a $50,000 loan and at least 720 to qualify for a $100,000 loan. Depending on your score, your lender may offer you varying loan terms, with borrowers with scores of 700-750 or higher typically qualifying for more favorable interest rates.

Checking your credit report before applying for any loan is a good idea. You will be able to find any errors or discrepancies and have an opportunity to correct them before you begin applying for a loan.

Checking your credit score counts as a soft inquiry and doesn’t negatively impact your credit score. The Fair Credit Reporting Act guarantees you the right to request one free copy of your credit report each year from each of the three major credit bureaus. You can find yours at AnnualCreditReport.com, which currently offers free weekly access to your reports.

Recommended: Does Checking Your Credit Score Lower Your Rating?

Employment Status

One of the factors your lender will consider is your employment status. They want to see how much income you earn and if you have the resources to repay the loan. In addition, the lender wants to be assured of your job stability. It may be a good idea to avoid making any sudden career changes while you’re applying for a loan.

Debt-to-Income Ratio

Your debt-to-income ratio (DTI) is a number that compares the total amount of debt you owe per month to your monthly earnings. You can find yours by taking your total recurring monthly debt and dividing it by your gross monthly income. Your recurring debt includes your mortgage, student loans, and other loans, and your gross income is everything you earn before taxes or other withholding.

Lenders use this number to help them predict a borrower’s ability to repay current and future debt. In general, lenders look for a DTI under 35%, but borrowers with a higher DTI may be approved if they are well qualified in other areas.

Assets and Collateral

As your application is reviewed, you may need to show assets in addition to a strong income and credit history. Assets include such things as real estate, cash in the bank, investments, vehicles, art, antiques, and jewelry.

Having these assets could help qualify you for a secured loan, which is one that involves putting up collateral that can be claimed by the lender if you default.

What Is the Application Process for a Large Personal Loan?

Applying for a personal loan is a multi-step process. Different lenders may have different processes, but typical steps are as follows.

Compare Rates

Some lenders may offer loan prequalification. This allows you to see, based on a soft credit check, potential average personal loan interest rates and terms you might qualify for. It can be a good way to compare your lending options and find the most favorable offer.

Gather Documents

As you move ahead with your personal loan application, collect all the paperwork you need.

Approaching this step proactively will help you streamline your application process, saving you time. It will also make it easier for your lender to review your eligibility and creditworthiness.

Personal loans usually require similar documents, no matter the lender, though. A few you should include are:

•   Proof of identity such as a driver’s license or passport

•   Proof of current address such as a current lease agreement, utility bill, or proof of insurance

•   Verification of stable income and employment such as W-2s, bank statements, pay stubs, or tax returns

Waiting for Approval

Once you submit all the necessary paperwork, the last thing to do is wait. Approval times vary between lenders, depending on how complicated the application is. Some approvals happen within a day, while others may take up to a week.

After your lender approves your large personal loan, you’ll receive it in the form of a lump sum. Lenders may deduct any fees, such as origination fees, before disbursing the loan proceeds. A personal loan calculator can help you estimate your loan payments.

💡 Quick Tip: Just as there are no free lunches, there are no guaranteed loans. So beware lenders who advertise them. If they are legitimate, they need to know your creditworthiness before offering you a loan.

What Can You Expect When Repaying Your Loan?

Regular installment payments begin once your large personal loan is approved and you receive the funds. The loan agreement will state the loan terms, interest rate, and what each payment will be, in addition to other details about the loan.

Monthly Payment Examples

Here are a few numbers to note that help you see how your loan payment might vary:

•   For a $50K loan at 7% APR and a 5-year term, your monthly payment would be $990

•   For a $50K loan at 9% APR and a 5-year term, your monthly payment would be $1,038

•   For a $50K loan at 9% APR and a 7-year term, your monthly payment would be $804

•   For a $100K loan at 7% APR and a 5-year term, your monthly payment would be $1,980

•   For a $100K loan at 9% APR and a 5-year term, your monthly payment would be $2,076

•   For a $100K loan at 9% APR and a 7-year term, your monthly payment would be $1,609

Early Repayment Options

Paying off a large personal loan early can help you save a bundle on interest. You might do this with a lump sum payment (say you have a windfall such as an inheritance) or you could adopt a biweekly payment schedule to speed up your paying off the debt.

While uncommon, some large personal loans may have prepayment penalties. Check the fine print or contact your lender to learn more.

Can You Borrow $100,000 if You Have Bad Credit?

While it might not be impossible, borrowing a large loan with bad credit won’t be easy. Lenders tend to favor low-risk borrowers who are more likely to repay their loans on time and in full. A strong credit history provides some assurance that a borrower will do that. But poor credit or no credit at all may look to lenders like a likelihood to default.

Lenders willing to loan to borrowers with bad credit typically require different data to evaluate their application. For example, they might ask the borrower to show a history of utility payments or information from their bank account. Lenders may also limit borrowing amounts and charge higher interest rates to applicants with bad credit.

Borrowers with poor credit can improve their chances by opting for a secured personal loan, one for which they pledge collateral to guarantee the loan, as noted above. This may work well for someone who struggles with credit but has assets and sufficient income to make loan payments. If the borrower defaults on the loan, the lender has the right to seize the asset pledged as collateral.

Are There Alternatives to Large Personal Loans?

After some research, you might decide a personal loan isn’t right for you. Or you may struggle to get the level of financing you want. In that case, there are alternatives to a personal loan. For example, you could consider these choices if you have equity in your home or other real estate:

•   Cash-out refinancing: A cash-out refinance allows you to replace your existing mortgage with a new, larger loan. After the original mortgage is paid off, you can use the difference as you like. This option works best if you have a significant amount of equity built up in your home and have a high credit score.

•   Home equity loan: Like a cash-out refinance, a home equity loan depends on your built-up home equity. However, it is an additional mortgage, rather than one new mortgage. By borrowing against your equity, the loan has collateral behind it, making it a secured loan.

•   Home equity line of credit (HELOC): Like a home equity loan, you use your home equity to access a HELOC. It acts as a line of credit you can tap into when you need it, and you only pay interest when you borrow. This works best for a homeowner who needs smaller amounts of money over a longer term, rather than just one lump sum.

•   401(k) loans: If you have a 401(k) plan, you may be able to borrow money from your retirement account. Depending on your plan’s specifics, you might be able to borrow up to 50% of your account’s vested balance or $50,000, whichever is less. If your balance is less than $10,000, you may borrow up to the full amount. Then, you pay the funds back with interest within a period (usually five years).

•   Securities-based loans: Another option could be a securities-based loan, often called a securities-backed line of credit (SBLOC). In this case, a lender allows you to borrow up to a certain percentage (typically 50%-95%) of the value of stocks, bonds, or other non-retirement assets in your investment account. The assets pledged as collateral are held in a separate account, and you are charged interest as you use your line of credit. Fees are generally quite low.

The Takeaway

A large personal loan is one that is typically in the range of $50,000-$100,000. It can allow you to pay off debts or make significant purchases. However, to qualify for a large personal loan, you may need to have a high credit score, a solid employment history, and other factors to qualify, and they come with their own set of pros and cons.

Finding the right large personal loan for your financial needs and situation may take some time, but comparing lenders is a good way to get started.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

SoFi’s Personal Loan was named a NerdWallet 2026 winner for Best Personal Loan for Large Loan Amounts.

FAQ

What’s the highest personal loan amount I can get?

Typically, the highest personal loan amount is $50,000-$100,000. Some lenders may offer up to $250,000 for some borrowers.

How long does it take to get approved for a large personal loan?

The time it takes to get approved for a large personal loan can vary. In some cases, it could happen within a day. In others, it might take a week.

Do all lenders offer $100,000 personal loans?

Some lenders offer $100,000 personal loans. Some offer large loans in the $20,000-$50,000 range, and others only offer loans up to around $5,000.

What happens if I default on a large personal loan?

If you default on a large personal loan, your debt can be turned over to collections. Your credit score can also be negatively affected.

Can I get a large personal loan with a cosigner?

Yes, you can get a large personal loan with a cosigner from some lenders. In some cases, a cosigner with a strong income and/or credit history could help you qualify.

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