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How to Pay Off 200k in Student Loans

How to Pay Off $200k in Student Loans

Is it easy to pay $200,000 in student loans? No, unless you’re a six-figure earner, it’s difficult for normal students to pay this much, but it can be possible with this guide.

If you have a lot of student loan debt, you must pay it off as soon as possible.

Loans with a high amount accumulate additional interest and continue to rise until they are paid off.

We’ll go through the top 9 tips to assist you in repaying your significant student debts and the story of Disha Spath and his husband in paying their $200K student loans.

9 Tips To Help You Pay 200K In Student Loans

1. Enroll In Income-Driven Repayment Plan To Lower Your Monthly Payments

Consider signing up for an income-driven repayment (IDR) program if you can’t afford your existing monthly payments on your federal student loan. 

Your loan servicer under an IDR plan extends your repayment term to 20 to 25 years and determines your monthly payment at a percentage of your non-discretionary income.

Under certain conditions, some students may receive $0 payments.

If you make regular repayments for 20 and 25 years, your $200K in student loan will be forgiven. The money is taxable as income, but this technique may still help to relieve tension.

2. Seek Student Loan Forgiveness

If you have federal student loans, several student loan forgiveness alternatives are open to you.

Many programs require that you have a specific kind of employment or make qualifying payments for a set period.

You may be eligible to apply for Public Service Loan Forgiveness (PSLF) if you have federal student loans and work for a qualifying nonprofit organization or a government agency.

If you work for 10 years at a qualifying organization and make 120 monthly payments under this program, you may receive loan forgiveness.

The remaining amount is tax-free, so the savings can be significant.

3. Consider Using The Debt Avalanche or Debt Snowball Approach

In some situations, all you have to do is concentrate on paying off your student debt as soon as feasible – particularly if you aren’t eligible for forgiveness.

Here are a couple of strategies that could help:

Debt avalanche method

With the debt avalanche strategy, you’ll concentrate on paying off your highest-interest-rate loan first while making the smallest payments on your other debts.

Although the debt avalanche method can save you money, it can be a slow process. If you prioritize small victories, the debt snowball technique might be more appealing to you.

Debt snowball method

The debt snowball approach will help you concentrate on paying down your smallest debt first, and you’ll make low payments on all of your debts.

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4. Refinance Your 200K In Student Loans

A new loan’s interest rate and repayment period are generally different than those on your old one. You can refinance medical school loans, law school loans, and other sorts of student loans.

If you have good credit, you could be eligible for a loan with a lower interest rate, which will help you save money over the term of your loan.

Alternatively, you can extend your payoff term to obtain a cheaper monthly payment that you can manage.

Just bear in mind: a longer period generally implies you’ll pay more interest over the life of the loan.

If you want to have an idea about how much you could save by refinancing, check our student loan refinancing calculator.

Look for as many lenders as possible to get the best loan for your needs if you want to refinance your student debts.

If you Consider Refinancing, Here are The Best Lenders in 2022

Fixed APR: 2.15% – 5.85%. Variable APR: 1.80% – 5.28%. + ($500 Gift)


Financeive Rate
Interest Rates
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Customer Experience
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Fixed APR: 1.99-5.79%. Variable APR: 1.74% to 8.27%


Financeive Rate
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Fixed APR: 2.49-7.04%. Variable APR: 1.98-7.14%


Financeive Rate
Interest Rates
Loan Amounts
Customer Experience
Approval Rate

5. Use a Co-Signer to Increase Your Chances of Good Interest Rate With Refinancing

To qualify for student loan refinancing, you’ll usually need good to excellent credit (a good credit score is generally considered to be 700 or higher).

If you have bad credit and are unable to refinance, consider applying with a creditworthy cosigner to boost your chances.

A cosigner will not lower your interest rate automatically, however, you may be able to get one if you don’t need a cosigner to qualify.

Anyone with good credit, such as a parent, another relative, or a trusted friend who is willing to shoulder the burden of the loan can be a cosigner. If you default on your student loan, your cosigner will be accountable.

If you have a cosigner and can get a better interest rate, you will save money on interest charges over the life of your loan.

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6. Make Extra Payments To Finish Your 200K Faster

Making extra payments is one of the most cost-effective methods to pay off your student loans fast, whether you’ve refinanced or not.

It might be as simple as putting a few hundred dollars toward the loan when you can.

Instead of applying all of your part payments to the principle, you can utilize them to reduce the overall interest that accrues.

If you make a large number of payments, it may shave months or even years off your repayment term.

7. Increase Your Income

The ability to earn more income might allow you to make bigger monthly payments and pay your student debt sooner.

Begin by requesting a raise or more hours from your employer. If you can’t get a raise, consider getting a side hustle, such as Uber driving.

Extra payments can help you save money on interest and speed up the repayment process.

8. Reduce Your Daily Expenditures

Here are some ideas for how it may be done:

  • Changing meals for homecooked food.
  • Unsubscribe from streaming services that you don’t need.
  • Choosing a new, low-cost insurance company is an excellent way to save money.
  • Instead of driving to work, take the bus or subway.

Our study shows that It will need 155 years (on average) to finish your student loan debt by employing only your Netflix subscription to pay your student loan.

So make a list of all the places where you may save money and transfer those savings straight toward your student loan debt.

9. Use Any Unexpected Money To Pay Off Your 200K In Student Loan

The extra money you weren’t expecting to receive, such as a bonus or raise, allows you to make more student loan payments without restricting your lifestyle.

Bonuses at work, tax refunds, cash donations, bequests, and even the most recent child tax credits given by the government are all good sources of found money.

If you want to finish your student debts as fast as possible, commit to investing these extra earnings toward your debt.

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How Long Does It Take To Pay Off 200k In Student Loans

Many variables can alter the timeline for repaying your student loans, including federal student loans that typically have a 10-year repayment term and private student loans with terms of 5 to 15 years. 

The length of time it takes to pay off your debt is determined by the original term (the length of the loan), any income-driven repayment options you use, and whether or not you refinance.

Your loan terms, your earnings, and other factors may all influence how long it will take to pay off the loan.

The number of years it takes to pay off your student loans can also be increased by particular activities. Deferment and Income-driven repayment plans can all add to the length of time it takes you to pay off your student debt.

In 18 Months, Disha Spath Paid Off 200K In Student Loans. Here’s How

Disha says: I was on medical leave from a hospital-based internal medicine physician job.

Before I became a mother, my husband and I were already living from paycheque to paycheque. This is due to my large student loan debt.

I received short-term disability payments during my maternity leave, however, the bulk of it went to paying off the debt.

We wanted to get out of debt as soon as possible so that we might have more control over our lives.

I began blogging about our experience and the difficulties we faced to establish a community, learn from, and assist others in my shoes.

We were able to pay off our two automobiles in less than a year thanks to our strategy.

And after that, we dealt with my $208,000 of student loans and were able to retire them in under 18 months.

My husband and I now had the flexibility to pursue vocations that felt meaningful to us while still spending time with our family, as our debts were paid down and more breathing room was available in our monthly cash flow.

I was able to transition from working all night and on weekends, to a more balanced schedule that allowed me to work 3 to 4-day weeks.

Instead of having to take whatever job was accessible, my husband was able to get work as a project manager in the computer industry, which he desired.

Everyone’s debt repayment path is different, but these are the phases we took in order tor the greatest financial goals.

Developing a Student Debt Repayment Strategy That Suited Us

We sat down and assessed all of our liabilities, including their interest rates, to see how much we owed.

By employing the debt snowball approach, putting all of our additional monthly savings towards the smallest loan until it was paid off.

Then we added the remaining amount and the monthly payment for the smallest loan to the next greatest loan until it was paid off in order.

This approach gave us little victories to rejoice along the way, as well as a lot of energy to keep going.

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Keeping Track of our Expenditures In Writing

We decided to become debt-free when we found ourselves in a position where we were spending as much money as our income.

At the end of each month, we sat down together and accounted for all of our expenditures.

I was able to identify what we could cut back on and where we might save once we became more conscious of our financial tendencies.

We Increased Our Income

The elimination of our smaller automobile loans was fairly simple. We needed some additional push when we got to my substantial student debt.

When my husband left the US military as a captain, he studied for his master’s degree and spent time at home with our children.

After completing his master’s degree, my husband was eager to get back to work. His project management income helped us speed up the accumulation of our debt snowball.

We Made It Simple and Automatic to Save Money

Instead of attempting to get rid of all non-essential outlay, we began by reducing fixed monthly costs.

I tried to make frugal choices to decrease the costs of other fixed monthly charges, such as gym memberships.

Frequently Asked Questions