SoFi

The median annual salary for pediatricians is $198,420, according to the most recent data from the Bureau of Labor Statistics. There are many different paths a doctor can take when it comes to choosing their medical specialty. Doctors who enjoy helping children feel their best and live healthy lives will likely find a lot of fulfillment in their jobs.

To learn more about how much a pediatrician makes a year, keep reading.

What Are Pediatricians?

A pediatrician is a type of doctor who provides medical care to children ranging from infancy to adolescence. They specialize in diagnosing and treating injuries, developmental issues, and illnesses children commonly experience. From routine exams to issuing vaccines to providing medicine to sick children, pediatricians can help.

The path to becoming a pediatrician can be a long and expensive one. Typically, that means college, medical school, a residency, and possibly a fellowship. Medical school can easily cost $250,000 in tuition. It’s wise to consider this investment when pursuing a career as a pediatrician. Many doctors have a high amount of medical school debt when starting out.

Also, keep in mind that being a pediatrician involves interacting with children and their families all day. This may not therefore be the best job for introverts.


💡 Quick Tip: When you have questions about what you can and can’t afford, a spending tracker app can show you the answer. With no guilt trip or hourly fee.

How Much Do Starting Pediatricians Make a Year?

While pediatricians can eventually earn very competitive salaries, like any job, they tend to earn less when they are entry-level. The lowest 10% of earners in this role make just $75,670, which is significantly lower than the median annual salary for all physicians of $198,420.

What is the Average Salary for a Pediatrician?

On average, a pediatrician can make a salary that is considerably higher than the American average for all jobs. Where a pediatrician chooses to work can greatly impact how much a pediatrician earns. This is a quick glance at the annual mean wage for a variety of workplaces where a pediatrician may be employed:

•   Offices of physicians: $203,690

•   General medical and surgical hospitals: $180,790

•   Outpatient care centers: $232,420

•   Colleges, universities, and professional schools: $84,810

•   Specialty (except psychiatric and substance abuse) hospitals: $201,100.

Another factor that also affects pediatrician earning potential is the state the doctor works in. This table below highlights how average pediatrician salaries vary by state, with typical pay arranged from highest to lowest by location.

In addition, it shares how much a pediatrician’s hourly pay vs, salary is.

What is the Average Pediatrician Salary by State for 2023

Source: ZipRecruiter

Pediatrician Job Considerations for Pay & Benefits

Alongside earning a $100,000 salary or more, most pediatricians also receive superior employee benefits. If a pediatrician runs their own practice, they will need to supply themselves and their employees with these benefits.

Those who are employed by employers like hospitals or medical groups can expect to gain access to benefits like paid time off, health insurance, and retirement accounts. They may also have unique benefits like continuing education allowances and malpractice insurance coverage.


💡 Quick Tip: Income, expenses, and life circumstances can change. Consider reviewing your budget a few times a year and making any adjustments if needed.

Pros and Cons of Pediatrician Salary

The main advantage associated with competitive pay for pediatricians is that they are quite high. With a median salary of $198,420, pediatricians are greatly rewarded for their hard work.

However, they must pursue many years of higher education to earn that salary. Many young doctors struggle under the weight of their student loan payments. So, while this salary may seem high at first glance, much of it can go towards student loan debt initially.

It’s also worthwhile to consider work-life balance. Being a pediatrician and improving the health of children can be a very rewarding career, but it can also involve long, tiring hours and being on call for patients on nights and weekends. Medical problems and emergencies crop up all the time, so this is a factor to acknowledge.

Recommended: How Much House Can I Afford?

The Takeaway

Pediatricians can earn very high pay while making a big difference in the lives of their patients and their families. They do have to commit to many years of schooling and education to become a pediatrician, but once they do, they can earn a great living.

SoFi helps you stay on top of your finances.

FAQ

Can you make 100k a year as a pediatrician?

Most pediatricians make $100,000 a year or more, especially after gaining a few years of work experience. The median annual salary for a pediatrician is $198,420.

Do people like being a pediatrician?

Pursuing a career in pediatric medicine is a major commitment and those who are passionate about this field and patient care are likely to really enjoy their work. However, this role requires many hours of patient interaction a day, so even if someone finds the work fascinating, it won’t be a good fit for them if they are antisocial.

Is it hard to get hired as a pediatrician?

The main challenge in getting hired as a pediatrician surrounds not having the right credentials. Potential pediatricians must pursue medical school and any required medical licenses in order to find a job in this field, which is no easy feat.

About the author

Jacqueline DeMarco

Jacqueline DeMarco is a freelance writer who specializes in financial topics. Her first job out of college was in the financial industry, and it was there she gained a passion for helping others understand tricky financial topics. Read full bio.

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

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.

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

SORL0124039

Entrepreneurship is booming in America. According to the U.S. Census Bureau, a record 5.5 million new business applications were filed in 2023. While entrepreneurship is often portrayed as being exhaustingly hard, its many upsides are clearly enticing more and more people to dive in.

What are the benefits of being an entrepreneur? They can range from setting your own hours to having unlimited earning potential to realizing a personal dream. Some people nurture an idea for an innovative product or service for years and then set to work bringing it to life. Others are on a mission to help their community or a specific segment of the population.

Still others set out with the simple goal of making a lot more money than their current 9-to-5 gig pays.

Whatever your motivation, the benefits of becoming an entrepreneur can have a major positive effect on your life. Here, we’ll take a closer look at the perks of starting your own venture. They just may motivate you to take this next giant step in your career and charter your own path.

Read on to learn:

•   What is an entrepreneur?

•   How does entrepreneurship work?

•   What are the benefits of being an entrepreneur?

What Is an Entrepreneur?

An entrepreneur is a person who starts their own business to bring their dreams to life. Whether they envision opening a better coffee bar or developing a fitness app, they invest time and capital in their business ideas and work diligently to make them successful. Entrepreneurs often partner with other investors, employ workers, and take risks as they seek success.

Typically, an entrepreneur is an inherent problem-solver with a can’t stop, won’t stop attitude. In addition, many are brimming with confidence and conviction that their idea is a terrific one. They refuse to stay discouraged and just see the word ‘no’ as a temporary setback at worst.

The U.S. is full of success stories of entrepreneurs, whether that means the likes of Microsoft’s Bill Gates, Amazon’s Jeff Bezos, or any of the folks who win on Shark Tank. Many of these experienced numerous failures and pressure to give up from family, friends, and potential investors but persevered.

While the wealthiest entrepreneurs are popular symbols of accomplishment and can make it look easy, the truth is that most entrepreneurs have spent countless hours and tremendous sweat equity behind the scenes to become successful.

How Does Entrepreneurship Work?

Entrepreneurship is the opposite of 9-5 jobs. Instead of punching a clock or working on a project for a company, you depend on your own efforts to bring in some type of income. The grind can be brutal, especially at first when you probably aren’t making money.

However, entrepreneurship means more than wanting to work for yourself. To live as an entrepreneur, you need an idea for a business, service, or product to focus your efforts. For example, you might see an opportunity to succeed with a superior product or be the first to serve a niche market. Ideally, you’ll start earning money to put in your bank account for savings or to invest back in the business.

As an entrepreneur, you bet on yourself, which means you invest as much of your time and money into your business aspirations as possible. You might leave your job to pursue your dream or put in hours before or after your day job to get your business going. Either way, successful entrepreneurs often reach a point where they grow their company enough that they must dedicate all their time to it, hire others to take on some of the workload, or partner with investors.

In addition, some entrepreneurs even create social change through their business efforts.

Benefits of Being an Entrepreneur

Now that you understand how entrepreneurship works, here are some pros of being an entrepreneur.

1. Ability to Work from Anywhere

One of the key benefits of becoming an entrepreneur is you typically have the ability to work from home or anywhere else you may be. Since you can run many types of business online, you often only need a laptop and internet access to work as an entrepreneur. A work-from-home budget can be an economical way to launch your venture. So, whether you prefer your living room, a coffee shop, or a beach (as some digital nomads do), you have the freedom to set up shop wherever you like without necessarily paying rent for a workspace.

2. Having a Flexible Schedule

In addition to working from anywhere, you choose when you’ll work as an entrepreneur. As a result, you make your own hours,which may give you room for family time, exercise, or errands during the day.

Worth noting: Since the “office” never closes, some entrepreneurs are known to toil 16-hour days (or longer) to realize their aspirations. For this reason, setting your own hours can be a double-edged sword that may lead to overwork and burnout for some. Proceed with your eyes wide open, and remember that work-life balance can be valuable.

3. Ability to Make Key Decisions

As an entrepreneur and business owner, the buck stops with you, which is another empowering benefit of being an entrepreneur. You’ll decide how the business runs, the product or service to focus on, and the target market you’re trying to reach. You pick your team, your partners, and your company culture as the business grows.

Recommended: Can I Use a Personal Checking Account for Business?

4. Growth in Leadership

A successful business requires an able leader. In all likelihood, entrepreneurship will give you opportunities to develop as a business owner and manager. You can learn new skills and expand your knowledge.

As a result, as you continue your professional journey, you’ll get the chance to become an effective boss, operations manager, and business development wrangler. All of which are pros of being an entrepreneur.

5. Ability to Give Back to Your Community

Success as an entrepreneur usually means growing your business to the point where you hire employees. As a result, your efforts may contribute to creating wealth and economic opportunities in your community, helping others support their families and accomplish their dreams. Additionally, successful business owners and entrepreneurs can invest in other companies and donate to charity, benefiting those around them. There’s one more way this can be an upside of entrepreneurship Your business mission may be one that uplifts others. Perhaps you’re developing a healthier snack food, for instance, or an app that helps people reduce their stress levels.

6. Choosing Who to Work With

As an entrepreneur, you might start your business slowly (a benefit of side hustles) or go in full tilt right from the start. Regardless of how you get going, you’ll determine who your partners and colleagues are, which can make for a very agreeable work life. Whether you occasionally speak with consultants, hire workers, or bring investors on board, you decide who gets involved with your business. Your independence as an entrepreneur allows you to intentionally create a work culture that fits your preferences. It’s empowering to have the ability to say “no” to working with someone who doesn’t fit your vision.

7. Being an Entrepreneur is Rewarding

One of the many benefits of becoming an entrepreneur is seeing success unfold, thereby proving the validity of your ideas and the impact they can have. Whether you develop a shampoo that people love or a service that helps disadvantaged students, knowing that your endeavor is finding an audience can be hugely rewarding.

In terms of finances, turning a profit on your business can be life-changing. Once you run payroll and address your business costs and responsibilities, the money you’ve earned can go into your bank account.

Whether you want to put money earned back into the business for more growth or use it to get a new car, seeing money roll in from your business can be incredibly satisfying. Instead of having a set salary, you’ll see how your very own efforts can drive your income and net worth.

8. Being Able to See the Fruits of Your Labor

Success as an entrepreneur is multifaceted and fulfilling: You could obtain financial freedom, see your business grow through meeting customers’ needs, mentor employees, and launch related (or unrelated) ventures. That feeling of having created something that clicks with an audience and builds a following is uniquely satisfying and can definitely boost your sense of pride and self-esteem.

Recommended: Common Signs That You Need to Make More Money

9. Creating a Positive Impact

Entrepreneurship goes beyond making an appealing product and profitable business. Your leadership can inspire others to pursue their dreams. Additionally, your company can create economic ripple effects, allowing others to achieve financial success and benefiting your city and beyond.

10. Income Is Decided by You

As an entrepreneur, you manage the money (at least during the start-up period). As your business evolves, you might get to decide whether you want to create jobs with better pay or scale your business quickly. You’ll also allocate funds and determine your own paycheck.

It’s a balancing act that you will be in charge of. For example, you might be less concerned with becoming a millionaire than you are with retaining quality employees for the long haul through robust compensation.

11. Networking Opportunities

Most successful entrepreneurs keep strong connections with others who are also starting their own ventures. For instance, you can learn from those who already had to rent workspace, run payroll, or deal with licensing arrangements. In the future, you might be the one tapped by a newly minted self-starter for that very same kind of information.

You’ll grow professionally through peer, mentor, and mentee relationships. No one knows it all, and tapping your network can be an effective way to solve business problems and find the right people to hire or consult.

The Takeaway

There are a myriad of benefits of being an entrepreneur, such as deciding your own schedule, boosting your earning power, and having the opportunity to impact people around you. However, successful entrepreneurship requires tenacity, willingness to learn from failure, and comfort with risk.

The beauty is that anyone can become an entrepreneur. Whether you start your business as a side hustle or leave your job to take the plunge, you have the power to create your own opportunity. You’ll get the chance to make important decisions, such as determining the location of your business, deciding how many employees to hire, and choosing the right bank account for your earnings. Being an entrepreneur can help you grow professionally, personally, and financially.

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

FAQ

What are the drawbacks of being an entrepreneur?

The drawbacks of being an entrepreneur include not having a guaranteed wage or salary, possibly investing more hours into your business than you would at most jobs, and the real risk that your endeavor may fail. As a result, you might put all your time and money into a business venture only to end up with nothing to show for it.

Can anyone become an entrepreneur?

Anyone can become an entrepreneur; no specific certification or education is necessary. However, in some cases, business experience, a college degree, and professional training programs can increase your chances of being a successful entrepreneur.

How long does it take to become an entrepreneur?

One of the pros of being an entrepreneur is that it’s possible to become one quickly if you have a business idea plus sufficient available hours and capital to start your venture. However, finding success as an entrepreneur usually takes years of hard work.

About the author

Ashley Kilroy

Ashley Kilroy is a seasoned personal finance writer with 15 years of experience simplifying complex concepts for individuals seeking financial security. Her expertise has shined through in well-known publications like Rolling Stone, Forbes, SmartAsset, and Money Talks News. Read full bio.

SoFi Checking and Savings is offered through SoFi Bank, N.A. Member FDIC. The SoFi® Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

3.60% APY
Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 11/12/25. There is no minimum balance requirement. Fees may reduce earnings. Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet

Eligible Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Eligible Direct Deposit”) via the Automated Clearing House (“ACH”) Network every 31 calendar days.

Although we do our best to recognize all Eligible Direct Deposits, a small number of employers, payroll providers, benefits providers, or government agencies do not designate payments as direct deposit. To ensure you're earning the APY for account holders with Eligible Direct Deposit, we encourage you to check your APY Details page the day after your Eligible Direct Deposit posts to your SoFi account. If your APY is not showing as the APY for account holders with Eligible Direct Deposit, contact us at 855-456-7634 with the details of your Eligible Direct Deposit. As long as SoFi Bank can validate those details, you will start earning the APY for account holders with Eligible Direct Deposit from the date you contact SoFi for the next 31 calendar days. You will also be eligible for the APY for account holders with Eligible Direct Deposit on future Eligible Direct Deposits, as long as SoFi Bank can validate them.

Deposits that are not from an employer, payroll, or benefits provider or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, Wise, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Eligible Direct Deposit activity. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. SoFi Bank shall, in its sole discretion, assess each account holder's Eligible Direct Deposit activity to determine the applicability of rates and may request additional documentation for verification of eligibility.

See additional details at https://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

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.

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.

SOBNK-Q324-061

The standard time to pay off federal student loans is 10 years, but terms can range from five to more than 20 years, depending on the type of loan and repayment program. Your specific situation will also determine how long you have to pay off student loans, including the amount of student loan debt you have and how high a payment you can afford to make each month.

Here’s what you need to know about paying off student loans.

Understanding Student Loan Repayment Timelines

First, you may be wondering when to start paying student loans. You need to begin loan repayment after you graduate from college, withdraw, or drop below half-time enrollment. Most federal loans, including Direct Subsidized and Direct Unsubsidized Loans, and many private loans, come with a six-month grace period, meaning that your payments won’t be due for six months after leaving school.

When it comes time to pay back your student loans, one of the most important things you can do is keep track of student loan payment due dates, to make sure your payments are on time each month. Late payments or failure to make payments can have serious consequences, including student loan default.

How Repayment Terms Affect Payoff Time

How long are student loan terms? It depends on the repayment plan you choose.

Once your loans become due, you can pick a student loan repayment plan. Student loan repayment options for federal loans include the Standard Repayment Plan, Extended Repayment Plan, Graduated Repayment Plan, and income-driven repayment (IDR) plans. These various repayment options come with their own pros and cons, so it’s important to understand your needs to determine which one makes the most financial sense.

If you don’t make a choice, your federal loans will automatically be enrolled in the Standard Repayment Plan, where the length of your repayment period is set to 10 years.

With private student loans, your repayment period is the term you agreed to when you signed for the loan. These will vary by lender and your personal situation.

Standard Repayment Plan: 10-Year Term

You have 10 years to pay off your student loans under the Standard Repayment Plan. You’ll pay a set amount every month, and you may pay less overall for the student loan because of the relatively short term.

For most federal student loans, the standard option includes a six-month grace period that allows recent graduates to get a head start on finding a job. The clock starts ticking the moment you graduate, leave school, or fall below half-time enrollment. Loans that offer a student loan grace period include:

•   Direct Subsidized Loans

•   Direct Unsubsidized Loans

•   Subsidized Federal Stafford Loans

•   Unsubsidized Federal Stafford Loans

Just be aware that interest continues to accrue on unsubsidized loans during those six months, and it will be added back into the loan, increasing the principal. Direct Subsidized Loans do not accrue interest during the grace period.

Public Service Loan Forgiveness

The Standard Repayment Plan might not be a good choice for you if you’re trying to qualify for Public Service Loan Forgiveness (PSLF). Borrowers pursuing this program agree to work in underserved areas for a government entity or certain nonprofits and must meet specific requirements to have their loan forgiven after 120 qualifying payments. To be eligible for this program, you need to be enrolled in an income-driven repayment plan as opposed to the Standard Repayment Plan.

Direct Loan Consolidation

Combining your federal student loans on the Standard Repayment Plan into a Direct Consolidation Loan could open up several repayment options. Consolidation combines your federal loans into one loan with a single interest rate, which may simplify the repayment process. The interest rate is the weighted average of the loans you are consolidating, rounded up to the nearest one-eighth of a percentage.

Your loan term, ranging from 10 to 30 years, will depend on the amount of student loan debt you have. Extending your loan term may lower your monthly payment, but keep in mind that you’ll most likely end up paying more in interest over the life of the loan.

Recommended: Student Loan Repayment Calculator

Alternative Repayment Plans: Graduated and Extended Options

Graduated Repayment Plan: 10 to 30 Years

Generally, all federal loan borrowers can opt for the Graduated Repayment Plan. This plan could be an option for borrowers who expect their income to rise over time. It begins with low monthly payments that gradually increase at two-year intervals. The idea is that recent graduates’ salaries at entry-level positions may start off low, but will rise over 10 years through promotions or job changes.

The downsides of the Graduated Repayment Plan are that you could be paying more over the life of the loan, and if your salary doesn’t increase as anticipated, the later payments can become burdensome.

So how long do you have to pay back your student loan under the Graduated Repayment Plan? Borrowers have 10 years to repay their loans, or 10 to 30 years if they have Direct Consolidation Loans.

Extended Repayment Plan: Up to 25 Years

The Extended Repayment Plan allows qualified applicants to extend the term of the loan to 25 years, making monthly payments smaller. Borrowers may end up paying more in interest over the longer loan term, but there are options for a fixed monthly payment or a graduated payment that will rise throughout the term.

The Extended Repayment Plan is geared toward borrowers who owe sizable sums. To qualify, you must owe $30,000 or more in federal student loan debt.

Neither the Graduated Repayment Plan nor the Extended Repayment Plan qualify for Public Service Loan Forgiveness.

Income-Driven Repayment Plans

Income-driven repayment (IDR) plans are designed to make repayment easier if you can prove that paying back your student loans is a significant financial burden. Payments are based on factors including your discretionary income and family size.

However, as of March 2025, access to IDR plans for new borrowers is currently on hold while the Trump administration reevaluates these plans. Borrowers who are already enrolled in an IDR plan are barred from recertifying for three months. You can find out more about this and any new developments on the Federal Student Aid website.

In the meantime, here is a quick look at how long borrowers have to pay back student loans under income-driven repayment plans. Each of the following plans has a different repayment period.

Typically, the remaining balances on eligible student loans are forgiven after making a certain number of qualifying on-time payments, but currently, forgiveness on three of the plans is paused, as detailed below. Borrowers who achieve the payment milestones on any of these plans will be placed in interest-free forbearance.

Saving On A Valuable Education (SAVE) — 10 to 25 Years

As noted previously, as of March 2025, the SAVE plan, which replaced the Revised Pay As You Earn (REPAYE) program, is no longer available after being blocked by a federal court. Forgiveness has been paused for borrowers who were already enrolled in the plan, and they have been placed in interest-free forbearance.

Pay As You Earn (PAYE) — 20 Years

A borrower’s monthly payment on PAYE is roughly 10% of their discretionary income, and they’ll make 20 years of payments. As of March 2025, forgiveness has been paused for borrowers who were already enrolled in the plan, and they have been placed in interest-free forbearance.

Income-Based Repayment (IBR) — 20 or 25 Years

On this plan, borrowers’ monthly payments are about 10% of their discretionary income. They will have 20 years to pay back the loan if they’re a new borrower on or after July 1, 2014. If an individual borrowed student loans before that date, they will have 25 years to finish making payments.

It’s important to note that on the IBR plan, forgiveness after the 20- to 25-year repayment term has been met is still proceeding as of March 2025, since the IBR plan was separately enacted by Congress.

Income-Contingent Repayment (ICR) — 25 Years

Under ICR, the monthly payment amount is either 20% of a borrower’s discretionary income divided by 12, or the amount they would pay on a repayment plan with a fixed payment over 12 years, whichever is less. As of March 2025, forgiveness has been paused for borrowers who were already enrolled in the plan, and they have been placed in interest-free forbearance.

How to Choose the Right Student Loan Repayment Plan

Choosing a student loan repayment plan is a personal decision that will depend on factors such as the amount of student loan debt you have, the industry you work in, your current income and expenses, your estimated future income, and your career goals.

For example, if you are working in a field in which starting salaries are low but income typically rises within a few years as you advance in your career, the Graduated Repayment Plan may make the most sense for you.

How Private Student Loan Repayment Differs From Federal Loan Repayment

Private student loans are not required to offer the same benefits or repayment plans as federal student loans. The term and repayment plan available to you will be determined by the private lender at the time you borrow the loan. This is based on your credit history, among other factors. If you have questions about the terms of your private student loans, you can contact your lender directly.

Ways to Pay Off Student Loans Faster

It is possible to fast-track your student loan payments. Here are some strategies to potentially pay off what you owe faster.

•   Put extra money toward the loan principal. By paying extra on your student loans each month (or whenever you can), you can help shrink your debt and reduce the total amount of interest you’ll pay over the life of the loan. Just be sure to specify to your lender or loan servicer that the extra money you’re paying should be applied to the principal. Otherwise, they might deduct the money from next month’s payment, rather than the loan balance.

•   Make a lump sum payment. Another option is to put a chunk of “found money” toward your student loans. This could be something like your tax refund or a bonus you get at work. Instead of spending the money, dedicate it to the principal on your student loans to help reduce your loan balance.

•   Refinance your student loans. To pay off your loans faster, you can also refinance student loans and select a shorter loan term. Shortening the term of the loan can also decrease the total amount a borrower spends on interest over the life of the loan, especially if they also qualify for a lower interest rate.

However, keep in mind that refinancing federal loans means you are no longer eligible for federal protections or programs such as federal deferment.

Pros and Cons of Long vs. Short Repayment Terms

When choosing a repayment option for your student loan, consider the benefits and drawbacks of long-term and short-term repayments. And then compare all the pros and cons to see what repayment strategy is a better fit for your situation.

Pros of Long Repayment Terms:

•   With a longer loan term, your monthly payments may be lower.

•   If you’re struggling to pay your monthly expenses, smaller student loan payments may help free up extra money in your budget.

•   Paying less on your student loans each month may help you work toward other financial goals, such as saving up for a car or a house.

Cons of Long Repayment Terms:

•   A longer loan term means you may pay more in interest over the life of the loan.

•   You’ll be in debt for a greater period of time with a longer loan term.

•   Lenders consider longer loan terms riskier than shorter terms and they may charge higher interest rates for student loans with longer loan terms.

Pros of Short Repayment Terms:

•   By paying off your student loans faster, you’ll repay your debt faster and free up your money for other purposes.

•   You’ll likely pay less in total interest costs over the life of the loan.

•   With a shorter repayment term on a private student loan, you might qualify for a lower interest rate on the loan if your credit is strong.

Cons of Short Repayment Terms:

•   Your monthly payment will be higher with a shorter loan term.

•   Larger payments mean your monthly budget will be tighter.

•   If unexpected expenses arise, such as emergency car repairs or a surprise medical bill, you may have trouble paying them.

Refinancing Options to Shorten Your Loan Term

If you’re considering refinancing your student loans, you could opt for a shorter repayment term, if you qualify. With a shorter loan term, your monthly payments will be higher, but you can pay off your debt faster, which may help you save on total interest over the life of the loan.

Another option is to refinance to a loan with a shorter repayment term and a lower interest rate, if you qualify. That way, you’ll generally pay less in interest each month and overall, and you’ll also pay off your loan faster. But again, your monthly payments will be higher.

The Takeaway

How long you have to pay off student loans depends on the types of loans you have, the student loan repayment option you choose, and how large an amount you can afford to pay each month. Options for paying off student loans include the Standard Repayment Plan, Extended Repayment Plan, and Graduated Repayment Plan. You can also choose to consolidate your federal loans into one loan with one monthly payment, or refinance federal and/or private student loans into a new loan with a new interest rate.

If you choose to refinance your student loans, the benefits include the potential of a lower interest rate or a lower monthly payment. If you choose a shorter loan term, your monthly payment will be higher but you’ll likely pay less in interest over the life of the loan. A longer loan term will get you a lower monthly payment, but you’ll pay more in interest overall. Just remember that refinancing federal student loans makes them ineligible for federal benefits.

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

FAQ

Is there a time limit to pay off student loans?

There is a time limit for paying off student loans. The time limit is determined by the loan term and repayment plan selected by the borrower. For example, under the Standard Repayment Plan, borrowers repay their student loans over a period of 10 years. On the Extended Repayment Plan, the repayment period is extended up to 25 years.

Do student loans go away after 25 years?

Student loans don’t just go away after 25 years. However, for borrowers enrolled in the Income-Based Repayment Plan, which is one of several income-driven repayment plans, the remaining balance is forgiven or canceled at the end of the loan term, which may be 20 or 25 years. This forgiven balance may be considered taxable income by the IRS, so be sure to understand if that is the case for you.

With other income-driven plans, as of March 2025, forgiveness is currently paused. Borrowers who reach the payment milestone on any of these plans will be placed in interest-free forbearance.

Are student loans forgiven after 7 years?

No, student loans are not just forgiven after seven years. There are no federal programs offering loan forgiveness after seven years.

Can you switch repayment plans if your financial situation changes?

With federal student loans, you can change your repayment plan at any time by requesting a new plan from your loan servicer. You will likely have to submit an application. While applications for income-driven repayment plans are on hold as of March 2025, you can explore other repayment plans such as the Standard, Graduated, or Extended Repayment Plan, depending on your situation.

If you have private student loans, you may be able to change your loan repayment terms through student loan refinancing, if you qualify for new terms. You can also contact your current lender to see if they might be able to work with you to make your payments more manageable if you are struggling financially.

What happens if you pay off student loans early?

There are generally no penalties for paying off federal or private student loans early. In fact, lenders are banned by law from charging prepayment penalties on private or federal student loans. If you pay off your student loans early, you’ll typically save money by paying less in interest over the life of the loan and eliminate a source of monthly debt.

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. 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.