May
08
2026
A woman sits in front of her laptop reading about different ways to pay off student loans.

7 Strategies to Pay off Student Loans Quickly

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

If you’re making student loan payments every month, you’d probably like to know how to pay off your student loans quickly. Not only will paying off student loans faster reduce your debt, it can also help you save money.

Fortunately, there are a number of strategies you can use to speed up repayment. Read on for tips on how to pay off your student loan fast so you can free up your budget and focus on other financial goals.

Key Points

•   Making extra payments toward student loan principal can reduce the amount of interest paid over the life of the loan and the total payoff time.

•   Strategies for making additional student loan payments include starting a side hustle for extra income and using “found money” like bonuses, gifts, and tax refunds.

•   Employers may provide student loan repayment help for employees; there are also loan repayment assistance programs offered by some states and organizations.

•   The snowball debt repayment method can be used to pay off loans with smaller balances first and then work to larger balances.

•   Refinancing or consolidating loans may simplify payments and potentially lower payment amounts.

7 Strategies to Pay Off Student Loans Fast

There are different methods for paying off student loans quickly — what works for you depends on your specific situation. You may want to try combining a few of the following seven approaches for managing student loan debt, for instance, or focus on just one.

1. Putting Extra Toward the Principal

One way to get ahead of student loan debt is to pay more than the monthly minimum owed. There are no prepayment penalties for federal or private student loans, so it can be an efficient method to shrink your debt.

As a bonus, when you put extra money toward the principal loan balance, you’re also reducing the total amount of interest you pay over the life of the loan.

If possible, put some additional funds toward your student loan payments each month. If that’s more than you can afford, you might consider increasing your payments every other month or quarterly.

Just make sure that the extra payments are applied to the loan principal. Contact your loan server and tell them to allocate your payment that way.

2. Making a Lump Sum Payment to Pay Off Student Loans Faster

Another option to consider is making a lump sum payment with any “found money” you have. This could be a tax refund, a monetary gift you get for a birthday or other occasion, or a bonus at work. Use any windfall you receive to double down on your debt. Again, instruct your loan servicer to apply the payment specifically to the loan principal.

Making a lump sum payment can help reduce interest and even help shorten your repayment timeframe. You can use a student loan payoff calculator to see how this method might help you pay off your student loans faster.

3. Finding a Side Hustle

Creating an additional source of income and putting those funds toward your debt could also help you pay off your student loans faster.

For example, if you’re crafty, you could try selling your creations on an online marketplace. If you’re a photographer, writer, or editor, you could look for a freelance gig. Or you could do tutoring or dogsitting on evenings and weekends. Once you get your low-cost side hustle going, the additional income can be regularly dedicated toward extra student loan payments.

4. Getting Help Paying Off Your Loan

You may be able to speed up student loan repayment with a little help from your employer, your state, or by doing volunteer work.

Getting help from your employer. Some employers offer a benefit called loan repayment assistance, in which they help employees repay their student loans. The employer might contribute up to a certain amount, and the employee may have to work for the company for a specific period of time to be eligible.

Other employers have programs that incentivize student loan repayment. For example, when an employee makes their regular monthly student loan payment, an employer can send an additional contribution toward their loans. The employee’s student loan gets paid off faster, and they save money on interest.

Seeking out Loan Repayment Assistance Programs. If you’re eligible, a Loan Repayment Assistance Program (LRAP) can provide funds to help you reduce your student loan payments. Some states, organizations, and companies may offer LRAPs, especially if you work in certain fields like health care or education. LRAPs often include a requirement that you work in your eligible job for a certain number of years, typically in public service.

Volunteering. Some volunteer opportunities might help ease your student loan debt. For example, skills-based volunteers and frontline workers for the Shared Harvest Fund, a mission-driven organization that’s dedicated to wellness and service, can get help paying for their student loans if they match up with a nonprofit organization that needs their talents.

💡 Quick Tip: Federal parent PLUS loans might be a good candidate for refinancing to a lower rate.

5. Creating a Budget to Free Up Funds

Setting up a budget can help you track how much money you have coming in every month compared to how much you’re spending. Once you see where your money is going, you may find expenses to cut out or reduce and then direct the money you save toward your student loans.

Start by jotting down your monthly income after taxes. Next, calculate your monthly expenses, including rent, utilities, food, streaming services, and loans like car loans and student loans. Compare your income to your expenses, and then see where you can trim.

For example, bringing lunch to work and making meals at home could help cut down on takeout and restaurant costs. Eliminating a streaming service you don’t often use could save you money, as could giving up your gym membership and taking up running instead. When you identify discretionary expenses to cut back, you can add the money you save to your student loan payments.

6. Rolling Out the Debt Snowball Method

There are specific debt repayment methods you can consider as well, including the debt snowball method. Here’s how it works.

First, take a look at your loans and focus on the balances. While you should be making at least the minimum monthly payment on all your loans, the debt snowball method has you put any additional money toward the loan with the smallest balance first.

Once that loan is paid off, you use the money you were paying on the old loan payment amount and roll it over to the next smallest debt. The idea is to continue using this method until all of your loans are paid off. Each time you pay off a loan, it feels like a win that helps you see the progress you’re making and motivates you to keep going.

7. Refinancing or Consolidating Loans

When you refinance student loans, you pay off your existing loans with a new loan from a private lender. Ideally, the new loan will have a lower interest rate, which could lower your monthly payments, or result in more favorable loan terms.

Some borrowers might be interested in combining refinancing with saving. With a flexible method like SmartStart refinancing from SoFi, for instance, borrowers pay only the interest on their student loans for the first nine months, and then they can put their extra money into a savings account or toward other expenses like rent.

Just be aware that the total repayment over the life of the loan may be slightly higher with this method than it would be by making standard principal-plus-interest payments from the beginning.

Also, it’s important to understand that refinancing federal loans makes them ineligible for federal benefits like income-driven repayment plans and federal deferment.

If you have federal student loans, you could consolidate them into a Direct Consolidation Loan, with one monthly payment. The new, fixed interest rate will be the weighted average of your existing interest rates rounded up to the nearest one-eighth of a percentage point.

Consolidation can lower your monthly payment by giving you up to 30 years to repay your loans, but a longer term means more payments and more interest. That’s something to keep in mind if you’re considering student loan consolidation vs. refinancing.

The Takeaway

There are several methods you can use to pay off student loans quickly, including making extra payments toward the loan principal, earning extra income with a side hustle, consolidation or refinancing, and loan repayment assistance programs. One or more of these strategies may be the ticket to chipping away at your student debt faster.

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 can I pay off my student loans quickly?

One of the fastest ways to pay off student loans is to put extra money toward the principal balance on your student loans whenever you can. Not only will this help you reduce the total principal you owe, it will also save you money on the total amount of interest you pay over the life of the loan.

Is it smart to pay off student loans early?

Paying off student loans early can be smart. Paying down your debt faster can help you save money overall and reduce the total amount of interest you’ll pay over the life of the loans. Paying off your loans quickly can also allow you to put more money toward your other financial goals, such as a down payment on a house or saving for retirement.

How can I find extra money to pay down student loans?

You can find extra money to pay down student loans by using your tax refund or a bonus you get at work and applying those funds to your student loan debt. You could also consider taking on a side hustle to earn extra income to put toward your loan payments.

What are some other solutions to student loan debt?

Other solutions to reducing student loan debt include creating a budget to help free up funds for your student loan debt; paying more than a minimum balance on your student loans whenever you can and putting that money toward your loan principal; and checking to see if your employer or state offers student loan repayment assistance.

Should I refinance or pay off student loans faster?

Whether you choose to refinance or pay off your student loans faster is up to you — each borrower should make a decision based on their own financial situation. That said, it is possible to do both. Refinancing may help you pay off your student loans faster if you qualify for a lower interest rate, which can lower your monthly payments, or if you shorten your loan term. Just be aware that a shorter term will likely make your monthly loan payments bigger.

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 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. Not all repayment options may be available for all loans. 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 current as of 3/2/2026 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.

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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May
08
2026
A woman sits in front of her open laptop and checks private student loan forgiveness options on her phone.

Private Student Loan Forgiveness: Options, Alternatives, and What to Know

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

Although there are forgiveness programs for borrowers with federal student loans, forgiveness options are more limited for borrowers with private loans.

However, private student loan borrowers, who collectively owe a total of $144.9 billion in student loan debt, do have other options to make their student loan payments more manageable.

Here’s what to know about private student loan forgiveness and what borrowers can do to get some private student loan relief.

Key Points

•   Private student loan forgiveness is rare, with limited options compared to federal loans.

•   Deferment or forbearance options are typically available for financial hardship, though interest usually accrues during these periods.

•   Negotiating with lenders may lead to loan modifications, such as a lower interest rate or extended payment term.

•   Employer assistance programs may help with loan repayment, especially in certain professions.

•   For some student loan borrowers, refinancing private student loans may result in a lower interest rate or better terms.

What Is Private Student Loan Forgiveness?

There is no formal program called private student loan forgiveness. Private student loans are rarely forgiven unless a borrower dies or becomes permanently disabled.

Private loan borrowers don’t qualify for federal forgiveness programs such as Public Student Loan Forgiveness (PSLF) or Teacher Loan Forgiveness. Those are federal programs that only apply to federal student loans.

Private loans are issued by a private lender like a bank, credit union, or online lender. However, some private lenders may offer options for forgiveness or cancellation of student loan debt in certain circumstances.

Student Loan Forgiveness Programs and Limitations

While federal student loans are eligible for forgiveness, federal forgiveness programs do have some limitations. Borrowers must qualify for the programs and then follow specific repayment plans and rules.

While the Biden administration approved a total of $188.8 billion of student loan forgiveness to 5.3 million federal borrowers while in office, these programs pertained only to federal loans. Private student loan borrowers were not included in any of the relief. Nor do any current federal forgiveness programs apply to private student loans.

Recommended: A Guide to Private Student Loans

Can Private Student Loans Be Forgiven?

Unfortunately, private student loans are rarely forgiven. However, some lenders do offer private student loan relief through student loan deferment or forbearance options for borrowers facing financial hardship. Interest typically accrues during these periods, regardless of whether the borrower is making payments.

Read your loan contract or disclosure statement, which contains information about terms, rates, fees, and penalties. Here, you’ll find information related to any hardship programs offered by the lender. You can also reach out directly and ask about your options.

Whatever you do, don’t miss a payment. Missing student loan payments can result in a number of negative consequences.

Contact your lender immediately if you’re facing a hardship that will prevent you from making payments on time and in full. After a default on a student loan, which can happen quickly, private lenders may hire a collection agency or file a lawsuit.

Why Private Student Loan Forgiveness Is Rare

Private student loan forgiveness is rare because private student loans are issued by private lenders. They are not government-backed programs like federal student loans are.

Private lenders are not legally required to offer forgiveness programs. They also don’t have the income-driven repayment program options that federal student loans do.

However, private lenders may offer tools for borrowers facing economic hardship, such as temporary deferment or forbearance as noted above, lower monthly payments or short-term interest rate reductions, or interest-only payments. Additionally, depending on the lender, some private student loans may be canceled or forgiven if the loan holder dies or becomes totally and permanently disabled.

Take control of your student loans.
Ditch student loan debt for good.

Private Student Loan Debt Relief Options

While student loan forgiveness is rarely an option for private student loans, there are ways to get private student loan debt relief. Here is a look at some of the private student loan repayment options.

Refinancing Your Student Loans

When you refinance student loans, the lender will pay off your old loans and issue you a new loan with a new rate and terms and one payment.

Student loan refinancing can offer several benefits. If you have a good credit history and solid income, or a cosigner on the loan, you may be able to qualify for a lower interest rate, reducing your monthly payments and the total interest you pay over the life of the loan.

Or you might be able to lengthen the term of your loan and decrease your monthly payments (although a longer repayment term will usually increase the total interest paid). You can use this student loan refinance calculator to see how refinancing could affect your payment.

You can typically refinance both federal and private loans. You’ll also be given a choice of a fixed or variable rate.

If you are thinking about refinancing your student loans, do your homework:

•   Be sure you’re getting the lowest rate possible with terms that fit your short- and long-term needs.

•   Find out if there are any fees involved.

•   If you plan to refinance any federal student loans, know that doing so will permanently forfeit all federal benefits and protections, including income-driven repayment plans, federal deferment and forbearance options, and forgiveness programs such as Public Service Loan Forgiveness.

•   Consider lenders that initially do a soft credit pull before you actually apply with them to refinance your student loan. That way, shopping for interest rates will not affect your credit.

•   And finally, keep in mind that you can refinance more than once.

Talk to Your Lender

Speak to your lender about your private student loan repayment options. You aren’t the first (and you won’t be the last) to ask for help, and many private lenders offer some flexibility for borrowers who are financially struggling.

For example, you may be able to negotiate a lower interest rate or a lower payment over a longer term.

Consider a Payment Pause

Some private lenders offer deferment or forbearance, which will allow you to postpone payments.

•   Deferment is sometimes available to borrowers who are planning to go back to school or who are entering military service.

•   Forbearance is typically available for those who have had an unexpected hardship that makes repayment difficult, such as an illness or a job loss.

Just remember that interest will still accrue during these private loan payment breaks.

Alternatives to Private Student Loan Forgiveness

Even though private student loan forgiveness is rare, there are other ways to manage your student loan debt and make your loans easier to repay. These are some strategies to consider.

Loan Modification and Negotiation

Many private lenders offer some type of loan modification for borrowers who are financially struggling.

As discussed previously, you may be able to negotiate a lower interest rate or a lower payment over a longer term, or set up a period during which you can make interest-only payments.

Be ready to answer questions about why you’ve fallen behind, what other debts you’re paying, and about your income prospects.

Employer Repayment Assistance

Approximately 36% of companies have programs that help borrowers pay back their student loans, according to a 2024 report by the Employee Benefit Research Institute. The amounts and terms vary from company to company, but these employer student loans repayment assistance programs may offer employees a match of up to $5,250 annually on payments they make toward their student loans. (Starting in 2027, the $5,250 amount will be indexed for inflation.) Check with your HR department to find out if your company has such a program.

Also, many states, industries, and professional associations offer student loan repayment assistance for borrowers who are employed in certain professions, including teachers, lawyers, and health care workers. Check with your state and the relevant business or association groups to see what’s available.

Budgeting and Repayment Strategies

Setting up a budget can also help you manage student loan debt. To create a budget, figure out how much income you have coming in each month after taxes. Then, make a list of all your monthly expenses like rent, utilities, groceries, streaming services, clothes, and payments due on credit cards and loans including student loans.

Finally, subtract your expenses from your income to see what’s left, and think about where you can cut back. For instance, maybe you can drop a streaming service or two, or eat out less often.

With the money you save, you can put a little extra toward repayment on your student loans. One way to do this is to put the additional funds directly toward the principal balance of your loan. This can help you reduce the amount of debt you owe, pay off your loans faster, and save you money on interest over time. Tell your lender specifically that the extra payment should go toward the principal.

Another repayment strategy to consider is the avalanche method. With this approach, you put extra money toward the loan with the highest interest rate, while making minimum payments on your other loans. Once that loan is paid off, you direct your extra funds to the loan with the next-highest rate until it’s paid off, and so on until your student loan debt is gone. This method can save you money on interest.

How to Avoid Private Student Loan Forgiveness Scams

It’s important to know that there are a number of student loan forgiveness scams that target borrowers seeking financial relief. Some companies that falsely offer debt relief may try to get you to pay monthly costs or upfront fees, ask for your identification, or promise immediate loan forgiveness.

To help protect yourself, avoid giving out personal information and beware companies that ask for upfront fees or promise guaranteed forgiveness. Also, make sure you choose a reputable lender when taking out student loans.

If you think you’re the victim of a student loan forgiveness scam, report it to the Federal Trade Commission.

The Takeaway

Private student loan forgiveness is rare, but private student loan borrowers do have options to help deal with their debt. For example, they may be able to work with their lender to modify their loan, refinance to get a better rate if they qualify, or get repayment assistance from their employer.

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 private student loans be forgiven?

Private student loans are rarely forgiven because, unlike federal student loans, they are issued by private lenders rather than the federal government. Private lenders are not legally required to offer forgiveness programs. However, some private lenders may offer other debt-relief options for borrowers facing economic hardship.

What options are available if you can’t repay private student loans?

If you can’t repay your private student loans, contact your lender right away, before you miss a payment. They may offer options such as a temporary payment pause through deferment or forbearance, or loan modifications such as a lower interest rate, a lower payment over a longer term, or interest-only payments.

Can refinancing help lower private student loan payments?

Refinancing may help lower your student loan payments if you qualify for a lower interest rate that reduces your monthly payments and the total interest you pay. You might also be able to lengthen the term of your loan to lower your monthly payments. Just be aware that a longer repayment term will usually increase the total amount of interest you pay.

Do private lenders offer hardship programs?

A number of lenders offer hardship programs to student loan borrowers, although it varies by lender. These programs may include a temporary payment pause through deferment or forbearance, interest-only payments, and lower payments over a longer term. Contact your lender to find out what they offer.

Is private student loan forgiveness legitimate?

There is no such thing as an official private student loan forgiveness program. Getting student loans forgiven is very rare. It generally only happens if the borrower dies or becomes totally and permanently disabled. Beware any company that promises forgiveness of private student loans for a fee — it is likely to be a scam. If you are having trouble repaying your private loans, contact your lender directly to find out about any hardship programs they offer.

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.

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 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. Not all repayment options may be available for all loans. 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 current as of 3/2/2026 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.

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 .

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May
08
2026
A female doctor checks information on a laptop

How Much Does Medical School Cost?

By | Debt Payoff, Fresh Out of School, Student Loans, student_loan | Comments Off on How Much Does Medical School Cost?

If you’re thinking about becoming a doctor and wondering, how much is medical school?, it’s a good idea to understand the total expense upfront. The average cost of medical school is $228,959 in total, according to the Education Data Initiative. The yearly cost is $59,720, and there’s an average increase of about $1,511 each year.

Seventy percent of medical students rely on student loans to help pay for the cost of medical school, and the average medical student graduates with just over $246,659 in total student loan debt (this includes debt from their undergraduate degree).

The average physician salary ranges from an average of $297,000 for primary care doctors to an average of $404,000 for specialists, with some specialties making close to $600,000 per year. While these numbers are well above the national average wage of $64,220 per year, paying for medical school and paying off medical school student loans is still no easy feat.

Key Points

•   The average total cost of medical school exceeds $228,950.

•   Student loans, scholarships, and grants, help students cover medical school expenses, with 70% of medical students borrowing loans.

•   Students who choose to pursue their degree by participating in a military physician program may get full funding for medical school with a service commitment.

•   Medical students can explore federal repayment plans and loan forgiveness options to help with their student loan debt.

•   Student loan consolidation and student loan refinancing are other methods medical students can consider to help manage their monthly student loan payments.

How to Pay for Medical School

With the average cost to become a doctor being well above six figures, affording their education is one of the biggest hurdles future medical students face. However, by being proactive about finding ways to pay for medical school, med students may be able to reduce their overall student debt.

Scholarships

Scholarships aren’t always easy to get at the graduate level, but it’s not impossible. Some schools offer merit-based scholarships to incoming medical students who show exceptional academic capabilities and have a unique life experience. Students can also look into more individualized scholarships geared toward their location, specific area of study, or previous work experience.

Scholarships are offered by colleges and universities, businesses, local organizations, churches, and more. While it may take some time to search for scholarships you qualify for, the end result could save you thousands in medical school tuition expenses.

Military Service

With the rising cost of medical school, some medical professionals choose to obtain their medical degree by participating in a military physician program. The qualifications and commitment for each program vary, and the separate branches of the military, including the Army National Guard and Navy Reserve, have different programs.

The two options for medical students in the military are the Health Professions Scholarship Program and Uniformed Services University of the Health Sciences. Both programs pay for the cost of medical school but require a service commitment once the student graduates.

Federal Financial Aid

The first step in getting federal student loans is to complete the Free Application for Federal Student Aid (FAFSA®). Students can check with the medical school they plan to attend to get filing date requirements and information on institutional financial aid (aid given by the school).

There are three types of federal student aid:

•   Grants: Grants, such as the Pell Grant, do not have to be paid back unless the student withdraws from school and owes a refund. Grants are needs-based and the maximum amount for the 2026-2027 academic school year is $7,395.

•   Work-Study: Federal work-study jobs are needs-based and help students earn money to pay for school through part-time employment. A bonus for medical students is that the work is often tied to community service or may be related to the student’s course of study, so this type of job may be more interesting and manageable than some others.

•   Federal Loans: A student who borrowed money as an undergraduate and demonstrated financial need may have been awarded a Federal Direct Subsidized Loan to help cover school costs. Those types of federal loans are not available to students in graduate and professional school programs.

However, medical students are eligible for other federal loans. They may receive a Direct Unsubsidized Loan, which is not based on financial need, or a Direct PLUS Loan, which will require a credit check.

Private Student Loans

Private student loans are usually used once federal student loans have been exhausted. Based on federal loan limits and the cost of medical schools, medical students may need additional funding to cover the gap. Certain private student loan lenders, including SoFi, allow borrowing up to 100% of the cost of attendance.

To get a private medical student loan with a competitive interest rate, a borrower generally needs to have a strong credit profile and a low debt-to-income (DTI) ratio. If a borrower doesn’t meet these qualifications, they may want to consider using a cosigner to get a better rate.

Have a Budget Plan in Place

Finding the right resources to pay for medical school is important, but learning to live within a budget can also help med students reduce their average medical school debt. Medical students who started with a spending plan as undergraduates can probably modify what they’ve already been doing. But, it’s never too late to start budgeting.

Once a student determines how much will be coming in from various sources (work, family, loans, scholarships, etc.), the next step is to list what will be going out for tuition and fees, housing, food, transportation, and other costs.

Next, it’s a good idea to see where you can cut back on spending. Is there inexpensive public transportation available? Will you have roommates to split rent and utility bills? Other ideas to reduce expenses include meal planning and cooking at home, canceling subscription services, and buying in bulk.

By living on a budget while in medical school, you may be able to take out less in loans, pay off your loans quicker, and set yourself up for financial success down the line.

How to Pay Off Medical School Loans

It’s no secret that physicians have the potential to earn a higher-than-average salary once they finish their residency and start practicing. Here are the average annual salaries of a variety of medical specialties:

•   Orthopedics: $564,000

•   Plastic Surgery: $544,000

•   Cardiology: $520,000

•   Radiology: $526,000

•   Anesthesiology: $501,000

•   General Surgery: $434,000

•   Emergency Medicine: $388,000

•   Ob/Gyn: $372,000

•   Family Medicine: $281,000

•   Pediatrics: $265,000

However, these amounts are not earned until both medical school and residency are completed. Luckily, there are medical school loan repayment strategies that can be used in the meantime.

It’s important to be aware that the total cost of medical school over time can be impacted by the loan repayment option a borrower chooses. Repayment plans with a longer loan term can result in the borrower paying more overall.

In addition, how interest accrues on certain repayment methods can also be a factor. For example, on federal income-driven repayment plans, unpaid interest may accrue. This can happen if your monthly payments are less than the interest that accrues between payments. In that case, because your payments don’t cover all of the interest, the unpaid interest will add up.

Loan Forgiveness and Repayment Through Service

There are several medical school loan forgiveness programs for doctors with student debt. Some are government-sponsored (federal and state), and some are private programs.

Benefits vary, but generally, participants provide service for two to four years (depending on the number of years they receive support) in exchange for repayment of student loans and possibly a stipend for living expenses.

One of the most common programs is the federal Public Service Loan Forgiveness (PSLF) program, which was designed to encourage students to enter full-time public service jobs.

While PSLF isn’t specifically aimed at medical students, it could help those who choose to work for a government or not-for-profit organization.

Eligible borrowers may receive forgiveness of the remaining balance of their federal direct loans after making 120 qualifying payments while employed by certain public service employers.

Another program is the National Health Service Corps (NHSC) Students to Service Loan Repayment Program, which provides loan repayment assistance in return for at least three years of service at an NHSC-approved site in a designated Health Professional Shortage Area. Students who are in their last year of medical or dental school may be eligible.

Federal Repayment Programs

There are currently several student loan repayment plans for federal student loan borrowers. Some are based on graduated payments that start low and increase over time, and they are designed to ensure the loans will be repaid after a designated period. Others, such as income-based repayment, are based on a percentage of discretionary income and family size, and the repayment term is generally 20 to 25 years on these plans.

However, for federal loans taken out on or after July 1, 2026, there will only be two repayment plans available: a revised 10-year Standard Repayment Plan and a new income-driven option called the Repayment Assistance Plan (RAP). The graduated and extended repayment plans will remain open to current borrowers but be phased out.

Federal Loan Consolidation

A Direct Consolidation Loan allows borrowers to combine multiple federal student loans into one loan with a single monthly payment.

Consolidation also can give borrowers access to available federal loan repayment plans and forgiveness programs. But the interest rate on the new loan will be a weighted average of prior loan rates (rounded up to the nearest one-eighth of a percentage), not necessarily a new lower rate.

If the monthly payment is lower, that may be because the loan term is longer, which means the borrower is paying more interest over time. Also, federal loan consolidation is only for federal loans and does not include private student loans.

Private Student Loan Refinancing

Another option borrowers may want to consider is to refinance medical loans. With student loan refinancing, one or more student loans are combined into one new private loan from a private lender with one new payment — ideally, with a lower interest rate.

Advantages of a student loan refinance include possible lower monthly payments and more favorable loan terms. You may even be able to refinance student loans during medical school, depending on your situation. However, borrowers should be aware that they will lose access to federal benefits if they refinance federal loans, including income-driven repayment plans and loan forgiveness.

You may also opt to extend the term of the loan when you refinance. An extended loan term means you may pay more interest over the life of the loan. You can use a student loan refinancing calculator to plug in the numbers and see how much your payments might be.

Medical School Cost vs Law School and Other Graduate Programs

You may be wondering how the cost of a medical degree compares to the cost of other advanced degrees like the average cost of a law degree. For example, what’s the average cost of medical and law school? Here’s how they stack up: While the average cost of medical school is $228,959 in total, the average cost of law school is $217,480, according to the Education Data Initiative.

Other graduate degree programs are less expensive than both med school and law school. For example, the cost to earn an MBA at Harvard (a two-year program) is $161,304. And the average cost to earn a Master of Public Health degree (MPH) is $79,530.

One thing to keep in mind is that medical school degrees require more years of schooling than other graduate degrees, which can account for some of the cost. A medical degree typically requires four years of medical school (followed by years of residency), while a law degree typically requires three years of law school, and an MBA usually takes two years of full-time attendance to earn.

The Takeaway

Medical school is expensive, with the average cost being well over $200,000. Many students rely on student loans, grants, and scholarships to pay for their medical education.

When it comes time to pay off your loans, there are many options new graduates can consider. These include federal repayment plans, student loan forgiveness, federal loan consolidation, and student loan refinancing.

If you do choose to refinance your student loans, consider SoFi. It takes just minutes to check your rate and your credit will not be impacted when you prequalify.

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

FAQ

How much does medical school cost on average?

The average total cost of medical school is $228,959, according to the Education Data Initiative. The average yearly cost of medical school is $59,720.

Is medical school more expensive than other graduate programs?

Medical school, which has a total average cost of $228,959, is more expensive than many other graduate programs, including law school, which has a total average cost of $217,480. It’s also more than the total average cost of an MBA from Harvard, which is approximately $161,304.

What are the main factors that affect the cost of medical school?

Factors that affect the cost of medical school include the length of time a student must attend. Medical school is typically four years — and that’s after the four years students spend earning their bachelor’s degree. In addition, there are supplies and equipment med students need, such as stethoscopes and lab coats, numerous text books, and study materials.

As students advance in their medical education, they will often do rotations, which may involve travel and accommodation costs. There are also licensing exams students must take, which are generally hundreds of dollars each.

Can scholarships cover the full cost of medical school?

There are some scholarships that cover the full cost of medical school, but the eligibility requirements to qualify can be rigorous. However, smaller scholarships can add up to help cover a chunk of medical school costs, so students should consider searching for and applying for the applicable scholarships they can find. One resource: The Association of American Medical Colleges, which has a scholarship database organized by state.

How do most students pay for medical school?

Most students pay for medical school by taking out student loans. Seventy percent of medical students rely on student loans to help pay for the cost of medical school, according to the Education Data Initiative.

What is the total cost of medical school including living expenses?

According to the most recent research by the Association of American Medical Colleges, the median cost of medical school, including living expenses, for first-year med students at an in-state public school was $67,693. The cost was $91,929 for those attending private medical school.

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 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. Not all repayment options may be available for all loans. 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 current as of 3/2/2026 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.

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.

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.
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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2026
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Fixed vs Variable Student Loans: How to Choose

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

Every year, 30% to 40% of undergraduate students take out federal student loans to help fund their college education and almost 50% of grad students take out graduate loans. While all federal student loans have fixed interest rates, private student loans can have fixed or variable interest rates.

When it comes to fixed vs. variable interest student loans, it’s important to understand the difference between the two. Fixed interest rates do not change throughout the loan term. Your monthly payment will remain the same unless you choose to refinance through a private lender and get a new loan with a new rate.

Variable rates, on the other hand, fluctuate with the market. Your rate could go up or down throughout the term of the loan, making monthly payments less predictable than with fixed interest rates.

What factors are worth considering before deciding between fixed or variable student loans? Read on to learn about the ways these two student loan options differ.

Key Points

•   Federal student loans only offer fixed interest rates, while private student loans may have fixed or variable rates.

•   Fixed rates remain constant over the life of the loan, offering predictable monthly payments.

•   Variable rates can fluctuate with the market, potentially increasing total repayment cost.

•   Generally speaking, borrowers planning to repay over the short term, may want to consider variable rate loans, while those seeking stability may prefer fixed rate loans.

Fixed Rate Student Loans

Federal student loans for undergraduate and graduate students have fixed rates. These loans have a locked-in interest rate for the entire loan term. This means that the interest rate on the loan when it is originally borrowed will be the same rate at the end of the term.

The only ways a borrower would be able to change the interest rate is to refinance student loans with a private lender or consolidate federal loans through the government.

When you refinance your federal or private student loans, what determines your student loan refinance rate is the market and your personal financial situation, such as your credit profile and your debt-to-income (DTI) ratio.

With a federal Direct Consolidation Loan, your interest rate is the average of the loans you are consolidating, rounded up to the nearest one-eighth of a percent. This rate is always fixed.

Fixed-rate student loans are typically considered the safer option as there is no chance the interest rate will rise. All federal student loans (since July 1, 2006) have fixed interest rates that are set by Congress. No matter which federal loan you qualify for, your interest rate will not change over the life of the loan.

Each type of federal loan will have its own fixed interest rate. For example, when it comes to grad school loans, Direct PLUS Loans for graduate and professional students and parents have a different fixed interest rate than Direct Unsubsidized Loans for graduate and professional students. For loans disbursed between July 1, 2025 and July 1, 2026, Direct Unsubsidized Loans have a rate of 7.94%, while Direct PLUS Loans have a rate of 8.94%.

Undergraduate Direct Subsidized Loans and Unsubsidized Loans disbursed between July 1, 2025 and July 1, 2026 have a fixed interest rate of 6.39%.

Pros of Fixed Rate Student Loans

Fixed-rate loans have benefits and downsides. The advantages include:

•   They’re not affected by market rate changes.

•   The monthly payments stay the same throughout the life of the loan.

Cons of Fixed Rate Student Loans

There are possible drawbacks of fixed rate loans, such as:

•   Market rates could decrease, meaning you could miss out on potential savings.

•   Borrowers can’t take advantage of interest rates if they go lower unless they refinance.

Recommended: Student Loan APR vs. Interest Rate

Who Should Choose a Fixed-Rate Student Loan?

While deciding between a variable or fixed-rate student loan, the choice ultimately depends on your specific financial situation.

That said, for borrowers who anticipate repaying student loans over a longer time period, those who prefer a predictable payment each month, or individuals whose future income level is uncertain, a fixed rate student loan may make more sense.

Also, if a borrower is eligible for federal student loans, these fixed-rate loans are typically considered a wiser choice because they come with federal programs and protections, including income-driven payment plans and student loan forgiveness.

Variable Rate Student Loans

As mentioned above, all federal student loans have fixed interest rates. Whether they’re looking for graduate loans or undergraduate loans, borrowers will only have the option to choose a variable rate student loan when taking out a private student loan from a private lender.

Variable rate student loans can be riskier than fixed interest loans. This is because the interest rate on a variable rate student loan can change (increase or decrease) throughout the life of the loan based on how the market performs at any given time.

While it can be a good thing if the interest rate goes lower than your original rate, there is also a possibility that the interest rate can increase.

Before choosing a variable rate student loan, it can be a good idea to know the average student loan interest rate and to ask your lender how often your interest rate can change on their end. Each lender has their own way of adjusting rates (some do it every month, where others will do it every few months).

You can also ask if there is a cap on the rate — some lenders will implement a cap so that a variable rate can’t exceed a certain percentage.

Pros of Variable Rate Student Loans

Just like student loans with fixed rates, variable rate loans also have potential benefits and drawbacks. The advantages include:

•   May benefit from certain changes in the market.

•   Borrowers could potentially save money if the interest rate drops.

Cons of Variable Rate Student Loans

There are also possible drawbacks of variable rate loans to consider, such as:

•   Your loan’s rate can go up or down on a monthly, quarterly, or annual basis. Thus, the monthly payment may not remain stable, and may increase or decrease as the interest rate changes.

•   For those paying off their loan over a fairly long timeline, the interest rate has more time to potentially go up, which could cost the borrower more in interest over the life of the loan.

Who Should Choose a Variable Rate Student Loan?

Once again, the choice of a variable interest rate vs. fixed student loan interest rate depends on your particular financial situation.

However, if you anticipate being able to pay off your loan over the shorter term, variable rate student loans might be an option to explore.

Recommended: When Do Student Loan Rates Increase?

Fixed vs Variable Student Loans: How to Choose

First and foremost, as noted, the final decision depends on your unique situation.

Just be aware that the longer it takes you to pay off the loan, the more opportunity there is for interest rates to rise with variable rate student loans, depending on the factors that affect student loan interest rates. You can help mitigate your risk by choosing a lender that caps its variable rates, but the rates will still fluctuate.

For borrowers who anticipate repaying student loans over a longer time period or those whose future income level is uncertain, a fixed rate student loan may make more sense.

Fixed vs Variable Student Loan Comparison

Here’s a side-by-side comparison of how fixed vs. variable interest rate loans compare.

Fixed rate student loan Variable rate student loan
Applies to Federal and private student loans Private and refinanced student loans only
Interest rate Stays the same for the life of the loan Can go up or down due to market changes
Monthly payment Doesn’t change May increase or decrease
Considerations Offers protection from rising rates; borrowers cannot take advantage of lower rates unless they refinance Possible risk of rising rates and higher payments (however, rates and payments could also go down)

Securing a New Interest Rate with Student Loan Refinancing

Whether you originally borrowed a fixed or variable student loan, one thing to remember is that the rate assigned when the loan was initially borrowed doesn’t have to be the rate for the entire life of the loan. Some borrowers might consider refinancing to change their rate.

For those wondering, should I refinance my student loans?, learning what the process involves may be helpful in making a decision. When you refinance, you exchange your old loans for a new private loan, ideally one with a lower interest rate, if you qualify.

Depending on student loan refinancing rates and your financial profile, refinancing might help you spend less in interest over the life of the loan.

You can use a student loan refinancing calculator to crunch the numbers to see if refinancing makes sense for you.

However, refinancing student loans is not the right option for everyone. Refinancing federal student loans makes them ineligible for federal forgiveness benefits and borrower protections like income-driven repayment and deferment. If you plan to use these benefits now or in the future, it is not recommended to refinance your student loans.

The Takeaway

The difference between fixed and variable rate student loans is that a fixed interest rate remains the same throughout the entire life of the loan, while a variable rate fluctuates with market changes over time.

All federal student loans have fixed interest rates that are set by Congress. Private student loans may be either fixed or variable.

For borrowers looking to change their student loan from fixed rate to variable rate or variable to fixed, or those who are hoping to get a lower rate to save money on interest, student loan refinancing is one option they could explore.

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

FAQ

Is a student loan variable or fixed rate?

All federal student loans are fixed rate loans. Private student loans may be fixed rate or variable rate.

Are federal student loans fixed or variable?

All federal student loans are fixed rate with interest rates that are set by Congress. This means that no matter what type of federal loan you qualify for, your interest rate will not change over the life of the loan.

Can I switch from a variable rate student loan to a fixed rate?

If you have federal student loans, there are two possible ways to switch from a variable rate student loan to a fixed-rate loan: through student loan refinancing with a private lender, in which case you replace your old loans with a new loan with new terms, or by consolidating your loans through the federal government. However, be aware that refinancing federal student loans makes them ineligible for federal benefits like income-driven repayment and federal deferment.

If you have private student loans, it’s possible to switch from a variable to fixed rate through refinancing.

Which is better for graduate loans — fixed or variable interest rate?

Both fixed and variable rate loans have pros and cons, and only a borrower can decide what’s best for their situation. With a fixed rate loan, you might miss out on some potential savings if market rates decrease. However, fixed rates remain the same over the life of the loan, so your payments won’t fluctuate and you can plan for it accordingly.

The interest rate on variable rate loans can go up and down based on market conditions. In a high interest rate environment you could end up paying more in interest. But if interest rates drop, you could pay less.

What are the risks of a variable rate loan for grad school?

With a variable rate loan for grad school, there is the risk that the interest rate could rise with economic conditions, meaning your payments would be higher. Of course, the rates could also go down. One thing to keep in mind is that if the term of your loan is a long one, the interest rate has more time to fluctuate, which could potentially end up costing you more in interest.

What factors should I consider when choosing fixed vs. variable student loans?

When choosing fixed vs. variable rate student loans, weigh the pros and cons. Fixed rate loans have interest rates that remain the same over the life of the loan so your monthly payments won’t change.

The rates on variable rate loans can fluctuate depending on market conditions. You could end up paying more in a higher interest rate environment — or less if interest rates drop.

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 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. Not all repayment options may be available for all loans. 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 current as of 3/2/2026 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.

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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May
08
2026
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Disability Student Loan Forgiveness: Eligibility and Process

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

A debilitating sickness or injury can be life-changing and make it challenging or impossible to pay back student loans. Because of this, borrowers who are considered “totally and permanently disabled” may qualify to have their student loans discharged through a federal forgiveness program known as Total and Permanent Disability Discharge.

Since this is a federal program, it only applies to federal student loan debt and not private student loans. Here’s what to know about forgiveness of student loans for disability and who is eligible for the student loan disability discharge program.

Key Points

•   Total and Permanent Disability (TPD) Discharge forgives federal student loans for borrowers with total and permanent disabilities.

•   Eligibility requires a disability lasting or expected to last at least 60 continuous months or that could result in death.

•   Documentation can be provided by the VA, SSA, or a health care professional.

•   SSA or physician approvals for TPD include a three-year monitoring period.

•   Refinancing federal student loans disqualifies borrowers from the TPD Discharge program.

Disability Discharge of Student Loans

Student loan discharge due to disability relieves borrowers of their student loan responsibilities in the event of total and permanent disability. Receiving a Total and Permanent Disability (TPD) Discharge from the U.S. Education Department means that a qualifying borrower does not need to pay back federal student loans or complete a TEACH Grant service obligation.

This is one of the student loan forgiveness programs available for eligible borrowers with federal student loans.

Can You Get Student Loan Forgiveness for a Disability?

Federal student loans can be forgiven due to disability. Borrowers interested in a disability discharge need to apply for the program and provide documentation to show that they are considered “totally and permanently disabled.” The Education Department will review the application to determine if an applicant qualifies.

In some instances, the Education Department may receive information from the Social Security Administration (SSA) or the U.S. Department of Veterans Affairs (VA) that an individual may qualify for a disability discharge of student loans. In these cases of automatic discharge, the Education Department may contact a borrower to provide information about requesting a TPD discharge.

You might also have a representative apply for a TPD discharge for you, such as a relative or an organization like a veterans’ service organization. To do this, you must submit an Applicant Representative Designation form for the other party to act as a representative on your behalf. The form must be processed by the Education Department before they can work with the third party on a TPD discharge for you.

Again, the student loan disability discharge program only applies to federal loans, such as Direct Loans, FFEL Program Loans, or Perkins Loans. This program of loan forgiveness for disabled students doesn’t apply to private student loans.

Recommended: Borrower Defense to Repayment

What Is Student Loan Total and Permanent Disability Discharge?

A Total and Permanent Disability Discharge means that a qualifying borrower will not be required to pay back federal student loans or complete a TEACH Grant service obligation.

Loans included in the program are those issued by the William D. Ford Federal Direct Loan Program (Direct Loans), the Federal Family Education Loan Program (FFEL), and the Federal Perkins Loans. With this forgiveness of student loans for disability, borrowers in a TEACH Grant service program may also be relieved from having to complete whatever service obligation remains in their program.

Who Qualifies for TPD Discharge?

To qualify for TPD Discharge, borrowers must meet the Education Department’s requirements for being “totally and completely disabled.” This means that they are unable to engage in “substantial gainful activity” because of a physical or mental impairment that has lasted — or is expected to last — at least 60 continuous months or that could result in death.

An individual must provide specific documentation from a qualifying organization or physician to prove that they meet the requirements. See more about this below.

Recommended: Can Student Loans Be Discharged in Bankruptcy?

Applying for Student Loan Disability Discharge

If you would like to apply for a disability discharge of student loans, the first step is to fill out a TPD discharge application.

You’ll also need to gather together documentation showing that you meet the Education Department’s requirements for being “totally and completely disabled.” There are three ways to provide the necessary documentation:

1. Through the VA

If you are a veteran, you can work with the U.S. Department of Veteran Affairs (VA) to provide the documentation needed to prove that you are permanently disabled from a service-related injury.

2. Through the Social Security Administration

If you are already receiving Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) benefits, you can use documentation from the Social Security Administration (SSA).

3. Through a Physician

You also can have a physician (an MD or DO), nurse practitioner (NP), physician’s assistant (PA), or certified psychologist certify that you are unable to earn money in any substantial way due to a physical or mental impairment. Here are the current official qualifications:

•   The impairment could result in death.

•   The impairment has lasted for a continuous period of at least 60 months.

•   The impairment can be expected to last for a continuous period of at least 60 months.

What Happens if I’m Approved for Student Loan Disability Discharge?

If you’re approved for student loan disability discharge, what happens next depends on whether you were approved for a disability discharge through the VA, the SSA, or your physician.

If you provided documentation from the VA, the following will happen upon approval:

•   You’ll be notified of the discharge

•   Your loan holders will be instructed to return any loan payments received on or after the effective date of the disability determination

Otherwise, you will face a monitoring period.

The Three-Year Monitoring Period

If you provide documentation from the Social Security Administration or from your physician, there will be an additional step if you qualify: You’ll be notified that you are subject to a three-year monitoring period. Your loans or TEACH work obligation could be reinstated if you don’t meet certain requirements at any time.

During the monitoring period, your obligations may be reinstated if you receive a new federal student loan under the Direct Loan Program or a new TEACH Grant, or if the SSA determines you are no longer disabled.

If you don’t meet the requirements during the monitoring period — or if you don’t qualify for a TPD discharge at all — there are other options for lowering federal student loan costs. For example, if you are a veteran, you may be eligible for military student loan forgiveness.

If you work full-time in public service for a qualifying employer and make 120 qualifying payments on a qualifying repayment plan, you may be eligible for the Public Service Loan Forgiveness program.

Other potential options for student loan debt relief include contacting your loan servicer to find out if you’re eligible for deferment or forbearance, or to ask if you qualify for an income-driven payment plan, which bases your monthly payments on your discretionary income and family size, and generally results in lower payments.

What Is Student Loan Refinancing?

Refinancing student loans may also help lower your repayment costs. With refinancing, you exchange your old loans for a new loan.

Because you’re using the new loan to pay off the existing loans, it’s possible to change the terms of the loan, such as securing a lower interest rate if you qualify or shortening the loan term (both of which mean saving interest over the life of the loan). You could also lengthen the loan term, which can lower your monthly payments, but potentially results in paying more interest over the life of the loan.

Keep in mind that if you refinance federal loans, you’ll lose access to federal benefits and protections, including eligibility for TPD, income-driven repayment, or other federal loan programs such as deferment or student loan forbearance. If you think you might want to pursue a disability discharge or other federal loan programs in the future, refinancing your federal loans may not be a good choice for you. If you have private loans, however, refinancing may be worth exploring.

Refinancing Student Loans With SoFi

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 disabilities qualify for student loan forgiveness?

To receive federal loan forgiveness under the Total and Permanent Disability Discharge program, you must have a mental or physical disability that severely limits your ability to work now and in the future. You’ll need to provide documentation of this total and permanent disability through the VA, the SSA, or a healthcare provider.

Can you get student loan forgiveness if you become disabled?

A borrower can apply for a student loan disability discharge only if they become totally and permanently disabled. An individual who qualifies for a TPD discharge is not required to pay back their student loan or complete their TEACH Grant service obligation.

Do you have to pay back student loans if you are on disability?

If a person is receiving SSDI or SSI benefits from the Social Security Administration and their next disability review is not for another five to seven years, then a person is considered totally and permanently disabled and eligible to apply for a TPD discharge. A three-year monitoring period follows a TPD discharge that is based on documentation from either the SSA or a doctor.

Does disability discharge apply to private student loans?

No. The federal disability discharge program applies only to federal student loans, such as Direct Loans, FFEL Program Loans, or Perkins Loans. However, some private lenders may offer disability discharge. Check with your lender.

Can a representative apply for TPD Discharge on your behalf?

Yes, you can have a representative such as a relative or an organization like a veterans’ service organization apply for TPD on your behalf. First, you must submit an Applicant Representative Designation form for the other party to act as your representative. Then the form must be processed by the Education Department in order for them to work with the representative to apply for a TPD discharge for you.

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.

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.

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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