Jan
02
2026
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Applying for No-Interest Student Loans

By | Fresh Out of School, Student Loans, student_loan | No Comments

Applying for no-interest student loans can significantly reduce the cost of earning a degree, making higher education more accessible without the long-term burden of accumulating interest. These unique funding options — typically offered by nonprofit organizations, state programs, and select institutions — allow eligible students to borrow responsibly while keeping repayment affordable and predictable.

While these loans are relatively rare, and amounts tend to lower than other types of student loans, no-interest student loans do exist and may be worth looking into for the potential savings. Read on to learn how interest-free student loans work and where to find them.

Key Points

•   No-interest student loans do not charge interest and require repayment of only the principal amount borrowed.

•   These loans are typically offered by nonprofit organizations, state governments, and universities.

•   Although rare and usually for smaller amounts, no-interest loans can significantly reduce overall student debt.

•   Applicants for these loans often undergo a process similar to scholarship applications, including essays and interviews.

•   It’s advisable to complete the Free Application for Federal Student Aid (FAFSA) as some no-interest loans use it to determine financial need.

What Is a No-Interest Student Loan?

Interest-free student loans are loans that do not accrue interest. Unlike grants and scholarships, the loan amount must be repaid, but because there are no interest charges, the amount repaid by the borrower remains the same as the original amount borrowed. Traditional student loans, whether federal or private, all come with interest rates that are either fixed or variable.

The interest rates on federal student loans are fixed and are set annually by Congress. For the 2025-2026 school year, the interest rate on Direct Subsidized or Unsubsidized Loans for undergraduates is 6.39%, the rate on Direct Unsubsidized Loans for graduate and professional students is 7.94%, and the rate on Direct PLUS Loans for graduate students, professional students, and parents is 8.94%.

While federal student loan rates are the same for every borrower, private student loan rates range based on the lender, the type of interest rate (fixed or variable), and the borrower’s credit score. Interest on private student loans can run anywhere from 3.19% to 17.95%, according to Education Data Initiative.

Whatever the interest rate on a student loan, you will end up paying more than you borrow. No-interest student loans can be an attractive alternative. Here are some places to look for interest-free loans:

•   Schools: Some colleges and universities offer no-interest loans for current students to cover emergency expenses.

•   States: You may be able to find an interest-free student loan through your state’s education agency. For example, Massachusetts offers students who demonstrate financial need and attend a qualifying school in Massachusetts a no-interest loan for up to $4,000 each academic year.

•   Nonprofit organizations: Some foundations and nonprofits offer no-interest student loans. These loans can be set up in different ways. In some cases, you can get a small loan amount; in others, the organization will pay your remaining cost of attendance. Some are awarded based on merit, while others are awarded based on financial need.

Applying for Interest-Free Student Loans

The application process for most interest-free loans resembles the application process for grants or scholarships more closely than a traditional loan application.

It’s a good idea to fill out the Free Application for Federal Student Aid (FAFSA®), even if you want to focus on loans without interest. The FAFSA determines your eligibility for federal aid, including grants, scholarships, and federal student loans. Some interest-free loans use the FAFSA to determine financial need.

And while federal loans do accrue interest, they typically have lower rates than private student loans. Federal student loans also come with benefits, such as income-based repayment and forgiveness programs, that private student loans and no-interest loans may not offer.

Interest-free student loans are often local and state-based, rather than national. They may require proof of residency in a certain state. Some may also have an essay requirement, academic requirements, and might even require an interview.

The process is usually more intense than regular student loans because funds are limited. Some state agencies and philanthropic organizations use the term “scholarship loan” to refer to interest-free loans. Scholarship loans may also be repaid through public service.

Keep in mind though that those organizations are still separate from the government, and do not offer the same repayment plans as the loans offered through the U.S. Department of Education.

Recommended: Student Loan Interest Deduction

Subsidized Loans: No Interest Until After Graduation

Interest-free loans are relatively rare, so it’s possible that students will still need to rely on federal student aid. There are two types of federal Direct Loans available to undergraduate students: subsidized and unsubsidized.

Subsidized loans are available to undergraduates who demonstrate financial need. The U.S. Department of Education pays the interest accruing on the loans while you’re in school, during your six-month grace period, and when your loans are in deferment.

On the other hand, unsubsidized loans are available to undergraduate and graduate students, and they don’t require that students demonstrate need in order to qualify. Interest accrues while you’re in school and during grace periods, deferment, or forbearance — and you’re responsible for paying the interest.

Federal student loans also offer a few different payment plans, including income-driven repayment plans, so that borrowers can find the option that works best for them. There are also borrower protections like deferment or forbearance that can act as a safety net for those who find themselves facing financial difficulties down the road.

The Takeaway

No-interest student loans, sometimes called scholarship loans or interest-free loans, are loans that do not accrue interest at all. While not common, there are some nonprofits, state agencies, schools, corporations, and religious organizations that offer interest-free loans to students.

In case you’re not able to find or qualify for a no-interest loan, it’s a good idea to fill out the FAFSA to access other forms of financial aid, including grants, scholarships, and federal student loans.

If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.


Cover up to 100% of school-certified costs including tuition, books, supplies, room and board, and transportation with a private student loan from SoFi.

FAQ

What is a zero-interest student loan?

A zero-interest student loan is a loan where you borrow money for your education but aren’t charged any interest — so you only repay the principal amount you borrowed.

Who can qualify for zero-interest student loans?

Typically, these loans go to low-income students, residents of certain states, or borrowers who meet specific financial-need criteria or eligibility requirements set by nonprofit or state programs.

Where can students find zero-interest loan programs?

Many are offered through state-funded programs — for example, state-administered no-interest loan initiatives — or through nonprofit organizations dedicated to making higher education more affordable.

About the author

Julia Califano

Julia Califano

Julia Califano is an award-winning journalist who covers banking, small business, personal loans, student loans, and other money issues for SoFi. She has over 20 years of experience writing about personal finance and lifestyle topics. Read full bio.

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

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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Dec
31
2025
A smiling woman wearing a colorful headscarf calculates the cost of extending student loan repayment terms at her desk.

Guide to Extending Student Loan Repayment Terms

By | Fresh Out of School, Student Loans, student_loan | Comments Off on Guide to Extending Student Loan Repayment Terms

Did you know that you may be able to draw out student loan repayment for 20 or 30 years? That means lower monthly payments, but you’ll pay more total interest over the loan term.

If your payments are a strain, consolidating or refinancing your student loans may allow you to stretch out repayment terms and tame those monthly bills. For borrowers with federal student loans taken out before July 1, 2026, you may also consider the Extended Repayment Plan that increases the term of your loan from 10 to 25 years. While it may make your monthly payments lower in the short term, in the long term, you’ll pay more interest with any of these options.

Ahead, we look at how student loan repayment terms work, the pros and cons of extending your loan term, and other options that might help you make your monthly payments more affordable.

Key Points

•  Standard student loan repayment is 10 years, but federal borrowers can extend to 20–30 years through consolidation, extended repayment, or income-driven plans (for loans taken out prior to July 1, 2026).

•  Extending lowers monthly payments (e.g., $562 → $330 on $50K debt) but increases total interest costs (from ~$17K to ~$29K in the example).

•  Federal consolidation allows up to 30 years of repayment, while most private lenders cap terms at 15–20 years, unless using consecutive refinances.

•  Pros of extending include lower monthly payments, financial flexibility, and potential access to lower interest rates. Cons include higher lifetime interest, longer debt horizon, and loss of federal benefits if refinancing privately.

•  Alternatives to reduce payments include autopay discounts, income-driven repayment plans, employer contributions, or loan forgiveness eligibility.

How Long Are Student Loan Repayment Terms Usually?

Federal student loan borrowers are automatically placed on the Standard Repayment Plan of 10 years unless they choose a different plan. They enjoy a six-month grace period after graduating, leaving school, or dropping below half-time enrollment before repayment begins.

There isn’t a standard repayment plan for private student loans, but the general repayment term is also ​10 years.

In the case of both private and federal student loans, you may be able to extend your student loan payments.

For example, if you have federal student loans, you can explore the following options:

•  Graduated Repayment Plan: Available to borrowers with all loans taken out prior to July 1, 2026. On this plan, you start with lower payments, and payments increase every two years for up to 10 years, or up to 30 years for Direct Consolidation Loans. Consolidation combines all of your federal student loans into one, with a weighted average of the loan interest rates, and often extends your repayment time frame.

•  Extended Repayment Plan: Available to borrowers with all loans taken out prior to July 1, 2026. With the Extended Repayment Plan, you can extend your loan term to 25 years, though you must have $30,000 or more in Direct or Federal Family Education Loan Program loans.

•  Income-driven repayment plan: Income-driven repayment plans allow you to make payments based on your income. This is a good option if you’re struggling to pay your monthly bill because your income is low compared with your loan payments. You may be eligible for forgiveness of any remaining loan balance after 20 or 25 years of qualifying payments or as few as 10 years if you work in public service. Keep in mind that for loans taken out on or after July 1, 2026, borrowers will only have one option for income-based repayment, the new Repayment Assistance Program.

If you have private student loans, you may be able to refinance your loans for a longer term. You can also refinance federal loans, but you’ll lose access to many of the benefits, including income-driven repayment plans and student loan forgiveness.

What Are the Pros and Cons of Extending Repayment Terms?

Let’s take a look at three pros and three cons of extending your student loan repayment terms:

Pros Cons
Allows for lower monthly payments You’ll pay more total interest
Gives you more flexibility Takes more time to pay off loans
Frees up cash for other things May have to pay a higher interest rate

Lower monthly payments can give you more flexibility and free up your money to go toward other things. However, you may pay considerably more interest over time. You’ll also spend more time paying off your loans.

Here’s an example of what extending student loan repayment can look like, using a student loan calculator:

Let’s say you have $50,000 of student loan debt at 6.28% on a standard repayment plan. Your estimated monthly payments are $562.16, the total amount you’ll pay in interest will be $17,459, and your total repayment amount will be $67,459.

•  Term: 10 years

•  Monthly payments: $562

•  Total interest amount: $17,459

•  Total repayment amount: $67,459

Now let’s say you choose to refinance. Refinancing means a private lender pays off your student loans with a new loan, and you receive a new interest rate and/or term. In this case, let’s say you opt to refinance to a 20-year term and qualify for a 5% rate. Your estimated monthly payments would be $329.98. You’d pay $29,195 in total interest, and the total repayment would be $79,195 over the course of 20 years.

•  Term: 20 years

•  Monthly payments: $330

•  Total interest amount: $29,195

•  Total repayment amount: $79,195

In this example, doubling the term but reducing the interest rate results in lower monthly payments — a relief for many borrowers — but a higher total repayment sum. You’ll pay nearly double in interest charges over the life of the loan.

How Long Can You Extend Your Student Loans For?

You can extend your federal student loan repayment to 30 years on a Graduated Repayment Plan if you consolidate your loans. Again, only borrowers with loans taken out prior to July 1, 2026 will be eligible.

Most private lenders limit refinancing to a 20-year loan term, but borrowers who are serial refinancers may go beyond that. With consecutive refinances, you can stretch a private loan term to 25 to 30 years.

Consecutive Refinances

You can refinance private or federal student loans as often as you’d like, as long as you qualify. Refinancing can benefit you when you find a lower interest rate on your student loans, but be aware of the total picture:

Pros Cons
May save money every time you refinance Will lose access to federal programs like loan forgiveness, income-driven repayment, and generous forbearance and deferment if federal student loans are refinanced
May allow for a lower interest rate and lower monthly payments If you choose a longer loan term, you may pay more interest over the life of the loan
Most student loan providers don’t charge fees for refinancing, such as origination fees or prepayment penalties You may not qualify for the best rates if you have a poor credit score

How do you know when to refinance student debt? If you find a lower interest rate, you could save money over the life of the new loan.

You can use a student loan refinancing calculator to estimate monthly savings and total savings over the life of the loan.

Refinancing Your Student Loans to a 30-Year Term

You cannot directly refinance your student loans into a 30-year term because almost all refinance lenders offer a maximum of 15- or 20-year terms. But you could take advantage of consecutive refinances to draw out payments for 30 years.

Or, you could opt for consolidation of federal student loans for up to 30 years.

Consecutive Refinance Approach

Since there’s no limit on the number of times you can refinance your federal and private student loans, as long as you qualify or have a cosigner, you can refinance as many times as you need to in order to lengthen your loan term.

Direct Consolidation Approach

If you have multiple federal student loans, you can consolidate them into a Direct Consolidation Loan with a term up to 30 years. Because the loan remains a government loan, you would keep federal student loan benefits and may even qualify for loan forgiveness after 20 or 25 years.

While extending your loan term may reduce your monthly payments in the short-term, it’s likely it will cost you more in interest in the long term. If you are struggling to make your federal loan payments, you might be better off choosing an income-driven repayment plan instead of extending your loan term.

Other Ways to Reduce Your Monthly Student Loan Payments

One of the best ways to reduce your monthly student loan payments is to talk with your loan servicer to determine your options. Some student loan servicers shave a little off your interest rate if you make automatic payments, for example.

More employers are considering offering help with student loan payments as an employee perk, too. Employers can contribute up to $5,250 per worker annually in student loan help without raising the employee’s gross taxable income. And starting in 2027, the $5,250 annual limit will be adjusted for inflation.

The Takeaway

A 30-year student loan refinance can offer real benefits, including lowering your monthly student loan payments. By stretching repayment over a longer period, you may gain more financial breathing room and improved cash flow.

But this convenience comes at a cost: extending the repayment term means paying more interest overall, and refinancing federal loans removes valuable protections such as income-driven plans and loan forgiveness.

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

What is a 30-year student loan refinance?

A 30-year student loan refinance extends your repayment term to up to 30 years, significantly reducing your monthly payment by spreading the balance over a longer period. While this can improve cash flow, it typically results in paying more total interest over the life of the loan.

What is the main benefit of refinancing to a 30-year term?

The main advantage of refinancing student loans to a 30-year term is reduced monthly payments. This can free up cash flow if current payments are a financial strain.

What is a major downside to choosing a longer term student loan refinance?

Extending the repayment period means you’ll likely end up paying significantly more in total interest over the life of the loan.

About the author

Melissa Brock

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/blackCAT

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Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FORFEIT YOUR ELIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers. Learn more at SoFi.com/eligibility. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

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SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.


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

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

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Dec
26
2025
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Changing Student Loan Repayment Plans: Understanding Your Options

By | Fresh Out of School, Student Loans, student_loan | Comments Off on Changing Student Loan Repayment Plans: Understanding Your Options

If you’re working to pay off student loan debt and having second thoughts about your current repayment plan, it’s possible to make a switch. There are a number of other plans to choose from, and one of them may be a better fit.

For example, there are income-driven repayment (IDR) plans that might help reduce your monthly payments, and an Extended Repayment Plan that could give you more time to repay what you owe.

It’s also important to be aware that federal student loan repayment plans will be undergoing changes in mid-2026, as part of President Trump’s “One Big Beautiful Bill” that was signed into law in 2025. So this is a good time to explore what your options are and what it takes to switch student loan repayment plans.

Key Points

•   Borrowers can change their federal student loan repayment plan at any time.

•   There is no limit to the number of times a borrower can switch to a new repayment plan.

•   Certain repayment plans may better suit a borrower whose financial circumstances have changed.

•   If a borrower is struggling to make student loan payments, switching to an income-driven plan may lower monthly payment amounts.

•   Other student loan debt management strategies include loan forgiveness, deferment, consolidation, and refinancing.

Student Loan Repayment Plan Options

The average student loan debt for federal loans is $39,075 per borrower, according to the Education Data Initiative. The Education Department (ED) currently has several repayment plans for these loans. Some of them are income-driven plans that are based on discretionary income and family size. If your financial situation has changed since you started paying your loan, you might benefit from switching student loan repayment plans if you qualify.

The types of federal student loan repayment plans for federal student loans that are currently available to borrowers include:

Standard Repayment Plan

The Standard Repayment Plan is the default plan for federal student loan borrowers. This plan sets payments at a specific amount that allows borrowers to pay their loans within 10 years.

On the Standard Plan, monthly payments are fixed. Because the repayment time frame is relatively short, borrowers will likely save more money on interest than they would on a plan with a longer repayment timeline. However, their monthly payments will typically be higher because of the short loan term.

It’s important to be aware that the Standard Repayment Plan will change for loans taken out on or after July 1, 2026. The repayment term will then range from 10 to 25 years, and it will be based on the loan amount. If you owe $25,000 or less, your term will be 10 years; if you owe more than $100,000, your repayment term will be 25 years.

Income-Based (IBR) Repayment Plan

One of the three IDR plans currently available, the Income-Based Repayment Plan bases a borrower’s monthly payments on their discretionary income and family size. Most of the other IDR plans are scheduled to close down in 2027, but IBR will remain open to current borrowers.

If you qualify for the IBR plan, your monthly payment will be 10% of your discretionary income if you’re a new borrower on or after July 1, 2014, and you’ll repay the loan over 20 years. Any remaining balance at the end of the loan term will be forgiven.

Income-Contingent (ICR) Repayment Plan

The Income-Contingent Repayment Plan sets a borrower’s payments at the lesser of 20% of their discretionary income or what they would pay on a repayment plan with a fixed payment over 12 years, adjusted to their income. ICR has a repayment term of 25 years.

This repayment plan closes to new enrollees on July 1, 2027. Those already on the plan have until July 1, 2028 to switch to the IBR plan or the new Repayment Assistance Plan (RAP) that will be launched by the Education Department in July 2026.

Pay As You Earn (PAYE)

On PAYE, monthly payments are 10% of a borrower’s discretionary income, and the loan term is 20 years. To be eligible, an individual must be a new borrower as of October 1, 2007, and have received a Direct Loan disbursement on or after October 1, 2011. On PAYE, a borrower’s monthly payment must also be less than what it would be on the Standard Plan.

Like ICR, PAYE is also closing down on July 1, 2027. Those already on the plan will need to switch to the IBR or RAP plan by July 1, 2028.

The Latest on SAVE

One income-driven plan that is no longer available is the Saving on a Valuable Education (SAVE) plan. SAVE was closed to new borrowers in February 2025, when a court order blocked it. Those enrolled in the plan were placed in forbearance.

So what should you do if you are enrolled in SAVE? In December 2025, the ED announced a proposed settlement with the court that would end the SAVE plan, and said that it would “move all SAVE borrowers into available repayment plans.” ED said it would “reach out to SAVE borrowers in the coming months with more information.”

Graduated and Extended Repayment Plans

The Extended Repayment Plan allows borrowers to repay their loans over a period of up to 25 years. Because of the long loan term, monthly payments will generally be lower, but borrowers will pay more in interest over the life of the loan compared to plans with shorter terms. To qualify for this plan, you must have more than $30,000 in outstanding Direct Loans or more than $30,000 in outstanding Federal Family Education Loans (FFEL) loans.

Under the Graduated Repayment Plan, a borrower starts with lower monthly payments that are gradually increased, typically every two years, over the course of 10 years.

Can You Change Your Student Loan Repayment Plan?

You can change your federal student loan repayment plan at any time. There is no cost to changing your federal student loan repayment plan.

Depending on the type of repayment plan you’d like to switch to, however, you may need to meet certain eligibility requirements.

Eligibility Requirements and Restrictions

Some plans, such as the Extended Repayment Plan and the IDR plans, have certain eligibility requirements. For example, to be eligible for the Extended Repayment Plan, a borrower must have more than $30,000 in outstanding Direct Loans or more than $30,000 in outstanding Federal Family Education Loans (FFEL) loans.

The requirements a borrower will need to meet to qualify for an IDR plan include:

•   Having an eligible loan type. Qualifying loans for IDR plans are Direct Loans (including Direct PLUS Loans for graduate or professional students, and Direct Consolidation Loans that did not repay any PLUS loans), Federal Stafford Loans, FFEL PLUS Loans made to graduate or professional students, FFEL Consolidation Loans that did not repay any PLUS loans made to parents, and Federal Perkins Loans, if these loans are consolidated.

•   Meeting an income cap for PAYE and ICR. Your income must be less than what you’d pay on the 10-year Standard Plan to be eligible for these plans.

•   Being a new borrower for PAYE. To qualify for PAYE, an individual must be a new borrower as of October 1, 2007, and have received a Direct Loan disbursement on or after October 1, 2011.

•   Recertifying every year. Borrowers must recertify their income and family size annually to remain on an IDR plan.

How Often Can You Change Your Student Loan Repayment Plan?

There’s no limit to how many times you can change your student loan repayment plan. You can change repayment plans multiple times during the life of the loan.

There are a few things to keep in mind, though, if you’re thinking about making a switch.

Factors to Consider Before Making a Change

Be aware that every time you change your student loan repayment plan, the interest rate and amount you pay may change. This could work to your advantage if interest rates are low, but if they aren’t, you could end up paying more for your student loan if you change your repayment plan.

Also, reducing your monthly payment may extend the number of years you pay back your loan, which means you’ll pay more in interest the longer you take to repay it. With a 10-year repayment plan, for example, you’d pay less in interest overall than you would with a 25-year plan.

Finally, if you are pursuing student loan forgiveness, changing your repayment plan could affect the qualifying payments you need to make. Not all repayment plans qualify for all types of federal forgiveness.

How to Change Your Student Loan Repayment Plan

If you’re wondering how to change your student loan repayment plan, the process is relatively simple. The easiest way to do it is online.

Steps to Switch Repayment Plans Online

To get started, log into your account at StudentAid.gov. You’ll need your FSA ID. From there, follow these steps:

1.    Click on “Loan Repayment.” From the drop-down menu choose the Loan Simulator and go to “I Want to Find the Best Student Loan Repayment Strategy.” The simulator will use your personal information, such as your income and dependents, to identify which plans you are eligible for.

2.    You can explore the different options you’re able to choose from to compare how much you might pay on each plan. Click on “View and Compare All Plans” at the bottom. This will allow you to see your monthly payment and total payments over the life of the loan.

3.    Decide which repayment plan makes the most sense for you. If you opt for an income-driven plan, you’ll need to apply for it (you’ll see an option to do that — just click on it).

4.    If you choose a fixed repayment plan, like the Graduated Repayment Plan or the Extended Repayment Plan, you can contact your loan servicer to request the new plan. You can find out who your loan servicer is by going to your student loan account dashboard and scrolling to the “My Loan Servicers” section.

Documentation You May Need to Provide

To switch to an IDR plan, you may be required to provide proof of income, such as pay stubs or a recent tax return. You’ll also need to provide your family size and marital status, and your spouse’s financial information, if applicable. Once approved for an IDR plan, you’ll need to recertify each year to continue with the plan.

Your application to change your repayment plan may take some time, so be sure to continue making your current student loan payments in the meantime.

Other Options for Lowering Your Student Loan Payment

Changing repayment plans isn’t the only way to potentially lower your student loan payments. These are some of the other methods you can explore.

Loan Forgiveness

If you work full-time in public service or you’re in education, there are federal loan forgiveness programs you may qualify for, such as Public Service Loan Forgiveness (PSLF), which forgives the remaining balance on your eligible loans after 120 qualifying payments made under an eligible repayment plan while working for a qualified employer. If you’re a teacher, and you’ve taught full-time for at least five consecutive years in a low-income school or educational service agency, you might be eligible for Teacher Loan Forgiveness.

Deferment or Forbearance

Borrowers looking for a way to temporarily pause or reduce their federal student loan payments may want to consider student loan deferment or forbearance. While these two programs are similar, there are some key differences. During deferment, borrowers are not required to pay the interest that accrues on their qualifying federal loans. In forbearance, however, borrowers must always pay the interest that accrues on their loans.

Deferment is designed for borrowers with financial difficulties. Forbearance comes in two types — mandatory, which must be granted to those who qualify, such as National Guard members; and general, which your loan servicer must approve you for.

Loan Consolidation

Borrowers who have more than one student loan and are struggling to juggle multiple payments, due dates, and interest rates, may want to consider consolidating student loans to streamline things.

A Direct Consolidation Loan allows borrowers to combine multiple federal loans into one. The interest rate of the new loan is a weighted average of rates of the loans you’re consolidating, rounded up to the nearest one-eighth of a percent. Consolidation can simplify loan payment, but just be aware that it may not save a borrower money because of the weighted interest rate.

Refinancing to a Private Loan

Another option is to refinance student loans with a private lender. With refinancing, you exchange your current loans for one new private loan — ideally one with more favorable rates and terms.

Refinancing could reduce your monthly payments, especially if you qualify for a lower interest rate. Choosing a longer loan term may also lower your monthly payments. However, you might pay more interest over the life of the loan if you refinance with an extended term.

Keep in mind that refinancing federal student loans makes them ineligible for federal benefits, including income-driven repayment plans and student loan forgiveness. Make sure you won’t need those benefits before you move ahead with refinancing.

If your current federal student loan repayment plan isn’t working for you, you have the option of changing to a new plan. There are income-driven plans that might lower your monthly payments, and extended and graduated plans that could help you lower or stretch out your payments over a longer term. You can explore different repayment options on the Federal Student Aid website to see what might be a good fit for your situation.

And keep in mind that changing repayment plans isn’t the only option for making it easier to manage your loans. You could also consider student loan forgiveness, deferment, loan consolidation, and refinancing. The point is, you have choices when it comes to repaying your student loan debt.

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

Can I change my repayment plan for student loans?

Yes, you can change your repayment plan for federal student loans whenever you like. You can choose a new plan, such as an income-driven repayment plan or the Graduated or Extended Repayment plans. You could also consider consolidating your loans, refinancing them, or pursuing student loan forgiveness, if you qualify.

Can you change your loan repayment plan at any time?

Yes, you can change your federal loan repayment plan at any time. And there’s no limit to how many times you can change your student loan repayment plan.

Can I switch IDR plans?

You can switch IDR plans as long as you qualify for the new plan. In addition to meeting an income cap, you must have eligible types of federal loans. Plus, in the case of the PAYE plan, you must also be a new borrower as of October 1, 2007, and have received a Direct Loan disbursement on or after October 1, 2011.

How do I know which student loan repayment plan is right for me?

To help determine which student loan repayment plan is right for you, you can use the Office of Federal Student Aid’s Loan Simulator tool. The simulator will use your personal information, such as your income, marital status, and dependents, to identify which plans you are eligible for. Then you can use the tool to compare the different plans and see your monthly payment amount on each one, plus your total payments over the life of the loan.

Will changing my repayment plan affect loan forgiveness eligibility?

It might, depending on the repayment plan you are changing to. Not all repayment plans qualify for all types of forgiveness. For example, with Public Service Loan Forgiveness, only payments made on an income-driven repayment plan or the Standard Repayment Plan count toward forgiveness. Before changing your plan, check the Federal Student Aid website to make sure that you will still be eligible for the type of forgiveness you’re working toward.

Photo credit: iStock/AlexSecret

SoFi Student Loan Refinance
Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FORFEIT YOUR ELIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers. Learn more at SoFi.com/eligibility. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.


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

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

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Dec
26
2025
A smiling woman with glasses and long hair sits working on a laptop with documents in front of her.

What Happens to Student Loans in Chapter 13 Bankruptcy?

By | Student Loans, student_loan | Comments Off on What Happens to Student Loans in Chapter 13 Bankruptcy?

It’s challenging to get federal and private student loans erased in bankruptcy. But if you’re overwhelmed with your student loans and other debt, you may be able to get some relief through Chapter 13 bankruptcy.

Unlike Chapter 7 bankruptcy, which involves liquidating assets to pay off debts, Chapter 13 allows you to restructure your debts with a new, more manageable payment plan. After three to five years on the plan, many outstanding debts are typically canceled. However, because of the way Chapter 13 bankruptcy works, this may or may not include student loans.

Even if your student loans don’t get wiped out, Chapter 13 reorganization could lower your monthly payments for several years and, by eliminating other debt, make it easier to repay them in the future. But because it has a major impact on your credit, Chapter 13 should only be used as a last resort.

Here’s a closer look at what happens to student loans in Chapter 13 bankruptcy and how it can impact your student loan situation.

Key Points

•   Discharging federal and private student loans through bankruptcy is generally considered a last resort because bankruptcy remains on a borrower’s credit report for years.

•   Chapter 13 bankruptcy restructures a debt into a payment plan that borrowers pay off over three to five years, while Chapter 7 liquidates borrowers’ assets to pay creditors.

•   Discharging student loans in Chapter 13 requires an “adversary proceeding” to prove “undue hardship” to the court.

•   Chapter 13 may reduce student loan payments and halt collections, but interest continues to accrue on the loans, typically increasing what’s owed.

•   Federal student loans are generally more challenging to discharge through bankruptcy compared to private student loans

Understanding Chapter 13 Bankruptcy

Chapter 13 is a type of bankruptcy that restructures your debt. It’s known as a “wage earner’s plan” because it enables borrowers who earn a steady income to develop a plan to repay all or part of their debts.

When you apply for Chapter 13 bankruptcy, you’ll make a list of all your debts, as well as provide information on your income and regular expenses. With the help of a bankruptcy trustee appointed by the court, you’ll come up with a plan for repaying your creditors on a three- or five-year plan. The plan will allocate your disposable income toward your debts on a “pro rata” basis, or proportionally based on what you owe to each creditor. Disposable income is the income left over after you’ve paid all of your essential expenses. Once you’ve completed the bankruptcy payment plan, the court will discharge the remaining balances of qualifying debts.

Student debt isn’t automatically considered a qualifying debt, though. To get your student loans discharged through Chapter 13 bankruptcy, you need to take an additional step of filing what’s called an “adversary proceeding.” As part of this filing, you must prove to the court that paying back your student loans would be an “undue hardship” for you and your family. While this used to be a highly complicated process, a policy change put into place by the Biden administration in 2022 simplified and streamlined the paperwork involved. Student loan borrowers can now fill out a 15-page form that details their financial struggles and makes their case for student loan discharge.

Eligibility Requirements for Chapter 13

To file for Chapter 13 bankruptcy, you must meet the following requirements:

•   You have a regular income. You must have enough disposable income to make some payments on your debts. If your income is higher than the local median income, you’ll repay your debt over three years. If it’s below the median, you’ll repay your debt over five years.

•   Your debt is under the limit. Your combined debts must total less than $2.75 million.

•   You’re up-to-date on income tax filing. You’ll need to submit proof that you filed your federal and state income tax returns for the four tax years before your bankruptcy filing date.

•   You’ve received credit counseling. You must have received credit counseling from an approved agency within 180 days before filing for bankruptcy.

Meeting these requirements sets the stage for entering into Chapter 13 bankruptcy and working toward debt reorganization. To get your student loans canceled through bankruptcy, however, there are additional requirements. A bankruptcy court typically must find that:

•   You cannot presently maintain a minimal standard of living if you are required to repay the student loan.

•   Your financial situation is likely to persist into the future for a significant portion of the loan repayment period.

•   You have made good faith efforts in the past to repay the student loan.

Recommended: Insolvency vs Bankruptcy

How Chapter 13 Differs From Chapter 7 Bankruptcy

One of the main differences between Chapter 13 and Chapter 7 bankruptcy is the way they deal with debt. With Chapter 7 bankruptcy, an individual’s non-exempt assets are liquidated to repay the debt. In Chapter 13 bankruptcy, the debt is reorganized and repaid under a court-approved plan over a period of three to five years.

While Chapter 7 discharges debt quickly — typically, within months — it has drawbacks. If you own property such as a home or car, they could be repossessed. Additionally, there’s the factor of how long bankruptcy stays on credit reports. A Chapter 7 bankruptcy remains on your credit report for 10 years.

If you file for Chapter 13 bankruptcy, you can typically keep property such as a home or car by paying what you owe through your repayment plan. Chapter 13 bankruptcy stays on your credit report for seven years.

Because of the serious impact both types of bankruptcy can have on your credit, filing for Chapter 13 or Chapter 7 bankruptcy is generally considered as a last resort.

Recommended: What Is Nondischargeable Debt?

How Does a Chapter 13 Bankruptcy Affect Student Loan Payments?

When it comes to Chapter 13 bankruptcy and student loans, your payments can be affected in the following ways:

•   It can reduce your monthly payments. Chapter 13 bankruptcy will base your debt payments on your disposable income. You’ll make payments to your appointed trustee, who will distribute these payments among your various creditors. Depending on the terms of the plan, your student loan payments may go down substantially.

•   It may temporarily delay student loan payments. Depending on your disposable income and the terms of your repayment plan, you may not have to pay anything toward student loans for a time during Chapter 13 bankruptcy. That said, interest will keep adding up on your loans, and you may face a greater debt burden when your Chapter 13 plan comes to an end.

•   It prohibits student loan collection. During Chapter 13 bankruptcy, an automatic stay will go into effect which prohibits credit collectors or loan servicers from harassing you and trying to collect the debt for up to five years.

•   You may be able to get your loans discharged. Filing for Chapter 13 bankruptcy does not in itself guarantee that your student loans will be discharged. But it does allow you to file an adversary proceeding. If you’re able to prove that repaying your student loans would cause extreme hardship, you may be able to get your loans canceled at the end of your repayment plan.

Treatment of Federal vs. Private Student Loans

Federal loans tend to be more difficult to discharge through bankruptcy than private student loans are to discharge in bankruptcy.

Although borrowers need to prove undue hardship to be eligible for bankruptcy with either type of loan, federal student loans come with more borrower protections than private student loans do. For example, federal loan borrowers may be able to take advantage of income-driven repayment plans that base monthly payments on a borrower’s discretionary income and family size, or opt for deferment or forbearance, which temporarily pause or reduce monthly student loan payments.

Private loans don’t have these benefits, so it may be easier for a private student loan borrower to prove that undue hardship exists as a result.

In addition, private lenders may be more willing to negotiate a settlement or loan discharge than the federal government, which has the ability to seize a borrower’s wages and tax refunds in order to collect on defaulted loans.

Impact on Interest Accrual During the Repayment Plan

During a Chapter 13 repayment plan, the interest continues to accrue on student loans. This means that a borrower may have a substantially higher amount to pay when bankruptcy ends. At that point, they will need to resume full payments for what they still owe on their student loans, plus the accrued interest.

What Takes Place When Your Chapter 13 Case Comes to an End?

A Chapter 13 bankruptcy can eventually discharge some of your debts. But unless you were able to prove to the court that repaying your student loans would be a serious hardship, your federal or private student debt won’t just completely go away.

Remaining Balance and Repayment Obligations

After the bankruptcy plan comes to an end, your lender or loan servicer will set you up on a new payment schedule with a recalculated monthly payment.

If you’ve been able to get rid of your other debts or increase your income over the years you’ve been in Chapter 13, you may be in a better position to afford your student loan payments. You can also explore various options for student loan relief or forgiveness.

An income-driven repayment (IDR) plan, as mentioned previously, bases your monthly student loan payment amount on your income and family size. And under one of the IDR plans — the Income-Based Repayment (IBR) plan — any remaining loan balance is forgiven on your federal student loans at the end of the repayment period.

Also, thanks to a new rule that went into effect in July 2025, borrowers in the IBR plan can receive credit toward forgiveness for each month of payments under a Chapter 13 plan. This is the case even if the borrower enrolls in the IBR plan during or immediately after the bankruptcy case is closed.

Will You Be Able to Apply for Student Loans in the Future?

Chapter 13 bankruptcy may affect your ability to secure student loans going forward, especially private loans. Here’s what you need to know.

Impact of Bankruptcy on Federal Loan Eligibility

Reorganizing your student loans through Chapter 13 bankruptcy should not disqualify you from taking out additional federal student loans in the future. However, you may not qualify for federal student loans or other types of aid if you have any loans in default.

If you’re in default, you can turn to student loan consolidation or rehabilitation to get your loans out of default and back into good standing.

Credit Considerations When Applying for Private Loans

Qualifying for a private student loan or student loan refinancing after bankruptcy might be more difficult. Private lenders base their approval decisions on your creditworthiness. Lenders may view applicants with a bankruptcy history as high-risk, leading to higher interest rates or denial of loan applications. Chapter 13 bankruptcy can stay on your credit report for seven years.

You may be able to qualify for a private student loan or student loan refinancing by applying with a creditworthy cosigner, however.

The Takeaway

Filing for bankruptcy doesn’t necessarily mean that your student loans will be discharged. However, Chapter 13 bankruptcy can give you a new repayment plan for all of your debts, including your student loans, for three or five years. This reorganization might give you some much-needed breathing room if you’re overwhelmed with debt and calls from debt collectors. After this time period, many of your debts (and possibly your student loans) will be canceled.

If Chapter 13 bankruptcy does not result in student loan discharge, however, you’ll have to pay them back after your plan comes to an end. Interest that accrued during the repayment period will also be added to the loan balance, increasing the total amount owed. And keep in mind that filing for Chapter 13 can have a negative impact on your credit that can linger for seven years.

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

Can Chapter 13 bankruptcy help with student loan payments?

Chapter 13 bankruptcy could reduce your student loan payments for three to five years. The automatic stay issued when you file for Chapter 13 also halts all collection activities, including those for student loans, which can prevent default and other aggressive collection actions during the repayment period.

Filing for Chapter 13 bankruptcy also allows you to file an adversary proceeding. If you’re able to prove that repaying your student loans will result in undue hardship, you may be able to get the loans canceled, along with your other debts, at the end of the repayment period.

Will Chapter 13 bankruptcy eliminate my student loan debt?

Not necessarily. Filing for Chapter 13 bankruptcy can get certain debts discharged after you complete a three- or five-year payment plan. In order to get student loans discharged, however, you need to file a separate action, known as an “adversary proceeding,” requesting the bankruptcy court find that repayment would impose undue hardship on you and your dependents.

What happens to student loan collections during bankruptcy?

If you file for bankruptcy, all collection activities, including those for student loans, will automatically be paused until the case is over or a judge says that payments should restart.

Can student loans be discharged in Chapter 13 under undue hardship?

It’s possible. If you are able to prove through an adversary proceeding that repaying your loans would result in undue hardship, you may be able to get your loans discharged.

Will filing Chapter 13 affect my ability to go back to school or get financial aid?

Unless you have student loans that are in delinquency or default, filing Chapter 13 should not affect your ability to go back to school or impact your eligibility for financial aid. If your loans are in default, however, you will likely need to resolve the situation and work to set up a repayment plan to become eligible for financial aid.

Photo credit: iStock/Maksym Belchenko

SoFi Student Loan Refinance
Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FORFEIT YOUR ELIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers. Learn more at SoFi.com/eligibility. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.


Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

This article is not intended to be legal advice. Please consult an attorney for advice.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

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Dec
23
2025
A woman with a graduation gown draped over her shoulder and a cap in her hand walks toward a building on a college campus.

Understanding Average Graduate Student Loan Debt

By | Debt Payoff, Student Loans, student_loan | No Comments

Getting a graduate degree can help you move up the company ladder, boost your salary, or switch to a different career. But going back to school can be costly. On average, students rack up $106,129 in student debt to pay for graduate school, based on projections for 2025 by the Education Data Initiative. That average reflects debt for all advanced degrees beyond the bachelor’s level, including master’s and doctoral degrees.

Many students who borrow money to pay for grad school already have debt from undergraduate studies. Their debt from graduate school alone is $95,104.

Fortunately, there are ways to get a graduate degree without taking on a large amount of student loan debt. There are also a variety of payment plans that can make repaying grad school debt easier on your budget after you graduate. Here’s what you need to know about student loan debt for graduate school.

Key Points

•  The average graduate student loan debt is $95,104, and when combined with typical undergraduate debt, totals around $106,129.

•  Debt levels vary: Master’s graduates owe $81,870, while Ph.D. graduates owe $180,757 on average, with higher balances at private schools.

•  Federal options include Direct Unsubsidized Loans (up to $20,500/year, 7.94% rate) and Direct PLUS Loans (up to full cost of attendance, 8.94% rate).

•  To reduce borrowing, students can pursue scholarships, fellowships, tuition assistance, online or accelerated programs, and borrow only what’s needed.

•  Repayment can be managed through income-driven plans, PSLF eligibility, or refinancing (though refinancing federal loans removes federal protections).

What Is the Average Graduate Student Loan Debt?

If you’re thinking about applying to graduate school, you may be wondering how much you’ll need to borrow to cover your costs and whether or not it will be worth it.

On average, students leave graduate school with a student loan debt balance of $95,104 (from grad school alone). How much debt students rack up going to grad school, however, can vary significantly depending on the type of degree they pursue and the kind of school they attend. A doctoral degree generally costs more than a masters, for example, while attending a public, non-profit university is typically cheaper than going to a private, for-profit college.

Here’s a closer look at the average graduate school debt balance for different degrees obtained at different types of institutions.

•  Master’s degrees: The average total student loan debt balance is $81,870 ($64,440 is just from graduate school).

•  Master’s degrees from public schools: The average total student loan debt balance is $69,624 ($47,560 is just from graduate school).

•  Masters degrees from private schools: The average total student loan debt balance is $95,381($79,329 is just from graduate school).

•  Ph.D.s: The average total student debt balance is $77,331.

•  Ph.D.s from public schools: The average total student loan debt balance is $74,978 from graduate school alone.

•  Ph.D.s from private schools: The average total student loan debt balance is $74,977 from graduate school alone.

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Exploring Options to Finance Graduate School

Grad students can finance their education with federal student loans, private loans, or federal and private student loans. Here’s a closer look at the different types of loans available for graduate school.

Federal Loans

Graduate students can take out two different types of federal loans.

Direct Unsubsidized Loans

Currently, you can borrow up to $20,500 each year in Direct Unsubsidized Loans for graduate school, and eligibility is not based on financial need. The interest rate for Direct Unsubsidized Loans for graduate students for 2025-26 is 7.94%, plus an origination fee of 1.057%.

If you borrowed federal funds for your bachelor’s degree, you may be subject to a total federal funding limit of $138,000 in Direct Loans, including the amount of your undergraduate degree. Graduate PLUS (and Parent PLUS loans) are separate from this amount.

However, as part of the big domestic policy bill President Trump signed into law in the summer of 2025, for graduate student borrowers who take out new Direct Unsubsidized Loans on or after July 1, 2026, there will be a new aggregate limit for these loans of $100,000.

Direct PLUS Loans

If Direct Unsubsidized Loans aren’t enough to cover your attendance costs, you can currently turn to Direct PLUS Loans, which have a higher interest rate. You can borrow up to the full cost of attendance for each year, which is set by your university and includes expected living costs for the town or city you’ll be studying in.

Eligibility is not based on financial need, but a credit check is required. Borrowers who have an adverse credit history must meet additional requirements to qualify. The interest rate for 2025-26 is 8.94%, plus a 4.228% origination fee.

It’s important to note that Graduate PLUS loans will be eliminated for new borrowers as of July 1, 2026, as part of the domestic policy bill. Students who took out PLUS loans before that time may continue for the lesser of three additional academic years or until the borrower graduates.

Private Loans

Students can also take out private student loans for graduate school. Borrowers applying for grad school who already have a well-established credit history, may be able to get a lower interest rate from private lenders than from the federal government. This could save you a significant amount of money over time, and also potentially help you get out of debt faster.

You’ll want to keep in mind, however, that the government offers significant protections that can make federal student loan debt easier to manage, such as income-driven repayment plans and student loan forgiveness.

How to Minimize Graduate School Debt

If you are interested in attending graduate school but worried about being saddled with high debt payments after you graduate, here are some ways to make your advanced degree more affordable.

Tap Free Funding Options

Scholarships, fellowships, and grants are some of the best ways to pay for graduate school. You can ask your school about institutional awards and also search for professional organizations focused on the field you’re interested in to see if they offer graduate scholarships. In addition, some schools also offer tuition waivers or some monetary awards for students who serve as teaching assistants.

Ask Your Employer About Tuition Assistance

If you plan to continue working while attending graduate school part-time, it’s worth finding out if your employer offers a tuition assistance program. Some companies will cover all or a portion of their employees’ higher education expenses. There may, however, be some strings attached, such as staying in the company for a specific amount of time. Reach out to your HR department to find out whether your employer offers this benefit and, if so, what the requirements are.

Borrow Only What You Need

There are no subsidized loans for graduate school, which means you’ll need to pay for all the interest that accrues on your loans. With Graduate PLUS loans, you are currently able to borrow up to your school’s cost of attendance, which can include expenses like transportation and child care. However, that doesn’t mean you should access the maximum amount. It’s a good idea to tap savings and income before turning to loans to cover all of your costs. This can help minimize how much debt you have to repay after you get your degree.

Look Into Online or Accelerated Programs

Some schools charge the same tuition for online and on-campus programs, but others charge substantially less for online classes. Also, the faster you can get a degree, generally the less you will have to borrow to pay for it. A one-year MBA, for example, will typically cost significantly less than a two-year program.

Explore Your Repayment Options

Federal loans currently offer income-driven plans that can keep graduate loan payments manageable after you graduate if your income is low. If you pursue a career in public service or nonprofit, you may also qualify for Public Service Loan Forgiveness (PSLF).
[Compliance: The PSLF article is currently in the process of being updated.]

If you’re getting an advanced degree that will boost your earning power, keep in mind that you may be able to refinance your federal and private graduate school loans after you graduate at a lower rate. This could potentially translate to lower monthly payments and also save you money over the life of your loan. Refinancing can also allow you to remove a cosigner off of your student loans, if you have one.

If you are considering refinancing student loans, keep in mind that refinancing federal loans with a private lender means giving up federal student loan protections such as income-driven repayment plans and PSLF.

The Takeaway

Most graduate students in the U.S. leave school with upwards of $106,000 in graduate school debt. Depending on what type of degree you pursue and where you study, you could end up with less — or more — than the average amount of graduate student loan debt.

If you’re interested in grad school but concerned about debt, keep in mind that you may be able to lower the cost of your degree by getting fellowships and grants, becoming a teaching assistant, tapping your employer’s tuition assistance, and considering an online or accelerated program. You may also be able to refinance your grad school loans at a lower rate after you graduate, making them easier to manage.

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

How much debt is the average graduate student in?

The average graduate student has about $106,129 in student debt, based on projections for 2025 by the Education Data Initiative. While that also includes debt from their undergraduate degree, their debt from graduate school alone is $95,104.

The exact amount of student debt grad students carry can vary widely, depending on the type of program they were in and the school they attended, among other factors.

Is $100,000 a lot of student loan debt?

For graduate students, $100,000 is about the average amount of student loan debt they hold, which is approximately $106,129 in 2025, according to projections from the Education Data Initiative. By comparison, the average undergraduate student debt is $39,075.

What is the average student loan debt for a doctoral degree?

The average student loan debt for borrowers with a doctoral degree is $180,757, according to the Education Data Initiative. Debt for those with professional doctorates, such as doctors and lawyers, have the highest average student loan debt of $213,439.

About the author

Julia Califano

Julia Califano

Julia Califano is an award-winning journalist who covers banking, small business, personal loans, student loans, and other money issues for SoFi. She has over 20 years of experience writing about personal finance and lifestyle topics. Read full bio.

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Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FORFEIT YOUR ELIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers. Learn more at SoFi.com/eligibility. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student loans are not a substitute for federal loans, grants, and work-study programs. We encourage you to evaluate all your federal student aid options before you consider any private loans, including ours. Read our FAQs.

Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. SoFi Private Student loans are subject to program terms and restrictions, such as completion of a loan application and self-certification form, verification of application information, the student's at least half-time enrollment in a degree program at a SoFi-participating school, and, if applicable, a co-signer. In addition, borrowers must be U.S. citizens or other eligible status, be residing in the U.S., Puerto Rico, U.S. Virgin Islands, or American Samoa, and must meet SoFi’s underwriting requirements, including verification of sufficient income to support your ability to repay. Minimum loan amount is $1,000. See SoFi.com/eligibility for more information. Lowest rates reserved for the most creditworthy borrowers. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change. This information is current as of 4/22/2025 and is subject to change. SoFi Private Student loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.


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

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

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Terms and conditions apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or other eligible status, be residing in the U.S., and meet SoFi's underwriting requirements. Not all borrowers receive the lowest rate. Lowest rates reserved for the most creditworthy borrowers. If approved, your actual rate will be within the range of rates at the time of application and will depend on a variety of factors, including term of loan, evaluation of your creditworthiness, income, and other factors. If SoFi is unable to offer you a loan but matches you for a loan with a participating bank, then your rate may be outside the range of rates listed above. Rates and Terms are subject to change at any time without notice. SoFi Personal Loans can be used for any lawful personal, family, or household purposes and may not be used for post-secondary education expenses. Minimum loan amount is $5,000. The average of SoFi Personal Loans funded in 2023 was around $33K. Information current as of 2/26/24. SoFi Personal Loans originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org). See SoFi.com/legal for state-specific license details. See SoFi.com/eligibility for details and state restrictions.

✝ To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

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