8 ways to pay off $100K in student loans

If you owe more than $100,000 in student loans, you can combine several strategies to speed up repayment, reduce the amount you owe, and save on interest costs.

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By Janet Berry-Johnson

Written by

Janet Berry-Johnson

Writer, Fox Money

Janet Berry-Johnson is a CPA and has over 12 years finance experience, with bylines at The New York Times, Forbes, and Business Insider.

Updated May 7, 2024, 10:09 AM EDT

Edited by Renee Fleck

Written by

Renee Fleck

Editor, Credible

Renee Fleck is a student loans editor with over five years of experience. Her work has been featured in Fast Company, Morning Brew, and Sidebar.io, among other online publications. She is fluent in Spanish and French and enjoys traveling to new places.

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Six-figure student loan debt can cast a shadow over your personal finances, making milestones like buying a home, starting a family, and even retiring someday seem like pipe dreams. But there are several strategies you can use to accelerate your debt payoff timeline and decrease the amount you owe, potentially saving you thousands in interest. 

Even small changes can make a big difference. For instance, if you owe $100K in student loans at 7%, you could save almost $30,000 by reducing your repayment term from 25 to 20 years. And more aggressive repayment can have an even larger impact:

Monthly payment
Total repaid (with interest)
5 years
$1,980
$118,807
10 years
$1,161
$139,330
15 years
$899
$161,789
20 years
$775
$186,072
25 years
$707
$212,034
Monthly payment amounts are based on a $100,000 student loan balance with a fixed interest rate of 7.00%.

But if you can't afford to increase your monthly payments, there are other ways to pay off $100,000 in student loans. 

1. Refinance student loans

Best for: Borrowers with high-interest private student loans or those who have significantly improved their credit scores since taking out their loans

Student loan refinancing allows you to take out a new loan with different terms — potentially with a lower interest rate — and use it to pay off your existing student loans.

By securing a lower interest rate, you can reduce the amount of money you’ll pay in interest over the life of the loan, which can save you thousands of dollars. Additionally, you might be able to adjust your loan term or payment amount to pay off your debt early.

However, be aware that refinancing federal student loans means losing access to federal protections and benefits, such as income-driven repayment plans, forbearance, deferment, and loan forgiveness programs.

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Tip

If you don’t have great credit, consider adding a cosigner with strong credit to help you qualify for a lower refinance interest rate.

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