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Average Student Loan Repayment Timelines
The initial amount borrowed, the interest rate on the loan, and the borrower’s repayment habits are some of the variables that determine how long it takes to pay back student loan debt.
- Financial experts and the U.S. government agree that a 10-year repayment plan is the best way to pay off student loan debt. S. Department of Education (ED).
- In reality, repaying student loans takes borrowers more than 20 years.
- 21. The average repayment period was one year, according to a 2013 study with 61,000 participants. *.
- Forty-five percent of student loan borrowers reduce their balance within the first five years of repayment.
- Twenty-one percent of student loan borrowers saw an increase in their balance during that same period.
- The typical salary of a medical school graduate is insufficient to cover their student loan obligations.
*More recent reports claim shorter timelines (~18. 5 years), however this is based on a survey of 2,200 borrowers in the 26–45 age range.
Class of 2024 Student Loan Repayment Timelines
The interest rates on student loans for 2023–2024 are the highest in ten years. At 5. 50% of current students may find it more difficult to pay off their student loan debts within the suggested 2010–year timeline.
- 5. The interest rate on direct subsidized and unsubsidized federal student loans to undergraduate borrowers is 50% from 2020–2023.
- 4. The interest rate for direct subsidized and unsubsidized federal student loans to undergraduate borrowers is 99% from 2020–2022.
- According to federal guidelines, 10% of income should be allocated toward debt repayment.
- 36% of income is the maximum amount that ought to be allocated for debt repayment.
- The lowest possible starting salary for a recent bachelor’s degree graduate is $50,680.
- $75,900 is the high-end starting salary.
- The average yearly salary for a bachelor’s degree graduate of college is $74,500.
- The median pay for recent bachelor’s degree graduates is $58,900.
- The estimated repayment period for bachelor’s degree holders who graduate in 2024 is five to seven years.
| Average Debt | Ultimate Cost | Time to Zero Debt |
|---|---|---|
|
$10,000 |
$10,600 |
2 yrs, 3 mos |
|
$13,400 |
$14,500 |
3 yrs, 1 mo |
|
$14,200 |
$15,500 |
3 yrs, 3 mos |
Associate’s Degree Debt Repayment
If they attend public universities, student borrowers with associate’s degrees are much less likely to accrue student loan debt. Attendees of private schools are actually more likely to take out student loans to cover their educational costs than their peers pursuing bachelor’s degrees.
- Just 15. 4% of Associate’s degree holders who completed their education at public universities use student loans to cover their educational expenses.
- 73. Three percent of students attending private, nonprofit schools take out student loans.
- 74. 2% of students enrolled in private, for-profit schools are in debt due to student loans.
- The average annual salary for someone with an associate’s degree is $52,300.
- The median pay for recent associate’s degree graduates is $48,300.
- The estimated repayment period for associate’s degree holders who graduate in 2024 is two to three years.
| Monthly Payment | Average Debt | Ultimate Cost | Time to Zero Debt |
|---|---|---|---|
|
$422 |
$27,000 |
$32,000 |
6 yrs, 4 mos |
|
$422 |
$29,200 |
$34,200 |
7yrs, 0 mos |
|
$422 |
$34,700 |
$43,700 |
8 yrs, 8 mos |
|
$491 |
$27,000 |
$31,100 |
5 yrs, 4 mos |
|
$491 |
$29,200 |
$34,200 |
5 yrs, 10 mos |
|
$491 |
$34,700 |
$42,100 |
7 yrs, 2 mos |
|
$621 |
$27,000 |
$30,100 |
4 yrs, 1 mo |
|
$621 |
$29,200 |
$33,000 |
4 yrs, 6 mos |
|
$621 |
$34,700 |
$40,200 |
5 yrs, 5 mos |
Graduate Student Loan Debt Repayment Timelines
Compared to undergraduate students, graduate and professional students typically borrow more money for school. Their income rates tend to be higher, as well.
- 7. The current interest rate on direct unsubsidized federal student loans to graduates or professionals is 0.5 percent.
- 8. The interest rate on DirectPLUS loans is 0.5 percent. These loans are available to professional or graduate borrowers, as well as parents who are borrowing money on behalf of their undergraduate children.
- The average student loan debt for a borrower with a Master’s degree from a public university is $53,470.
- The average debt for master’s degree holders attending private, for-profit universities is $88,680.
- The average debt for those with doctorates ranges from $106,430 to $183,200.
- The average debt for those with professional degrees who attended private, nonprofit universities is $217,830.
- $86,400 is the average salary for a master’s degree holder.
- $108,200 and $108,300, respectively, are the average incomes for those holding professional and doctorate degrees.
| APR % | Current Debt | Ultimate Cost | Time to Zero Debt |
|---|---|---|---|
|
7.05% |
$53,500 |
$70,500 |
8 yrs, 2 mos |
|
7.05% |
$70,600 |
$105,500 |
12 yrs, 3 mos |
|
7.05% |
$88,700 |
$158,100 |
18 yrs, 4 mos |
|
8.05% |
$53,500 |
$74,300 |
8 yrs, 8 mos |
|
8.05% |
$70,600 |
$115,400 |
13 yrs, 5 mos |
|
8.05% |
$88,700 |
$188,600 |
21 yrs, 10 mos |
| APR % | Current Debt | Ultimate Cost | Time to Zero Debt |
|---|---|---|---|
|
7.05% |
$90,500 |
$137,000 |
12 yrs, 8 mos |
|
7.05% |
$92,400 |
$141,600 |
13 yrs, 1 mo |
|
7.05% |
$157,300 |
NA** |
NA |
|
8.05% |
$90,500 |
$150,700 |
13 yrs, 11 mos |
|
8.05% |
$92,400 |
$156,600 |
14 yrs, 6 mos |
|
8.05% |
$157,300 |
NA |
NA |
**The principal interest on the loan is not covered by the monthly payment, making repayment impossible.
Postgraduate Student Loan Debt Repayment Timelines
Students with outstanding student loan debts may not be obliged to make payments when they return to school. However, this does not mean that interest on these debts stops. In order to pursue postgraduate studies, students may take out additional loans on top of their current student loan debt.
| APR % | Current Debt | Ultimate Cost | Time to Zero Debt |
|---|---|---|---|
|
7.05% |
$140,100 |
$376,500 |
34 yrs, 10 mos |
|
7.05% |
$217,800 |
NA |
NA |
|
7.05% |
$186,800 |
NA |
NA |
|
8.05% |
$140,100 |
NA |
NA |
|
8.05% |
$217,800 |
NA |
NA |
|
8.05% |
$186,800 |
NA |
NA |
| Monthly Payment | % of Income | APR % | Current Debt | Ultimate Cost | Time to Zero Debt |
|---|---|---|---|---|---|
|
$1,803 |
20% |
7.05% |
$217,800 |
$380,800 |
17 yrs, 8 mos |
|
$2,704 |
30% |
7.05% |
$217,800 |
$295,900 |
9 yrs, 2 mos |
|
$1,803 |
20% |
7.05% |
$186,800 |
$288,800 |
13 yrs, 5 mos |
|
$1,803 |
20% |
8.05% |
$217,800 |
$448,500 |
20 yrs, 9 mos |
|
$2,704 |
30% |
8.05% |
$217,800 |
$314,400 |
9 yrs, 9 mos |
|
$1,803 |
20% |
8.05% |
$186,800 |
$320,200 |
14 yrs, 10 mos |
| Salary | Monthly Payment | % of Income | Total Cost | Time to Zero Debt |
|---|---|---|---|---|
|
$74,300 |
$619 |
10% |
NA |
NA |
|
$74,300 |
$1,239 |
20% |
NA |
NA |
|
$74,300 |
$1,858 |
30% |
$533,700 |
24 yrs, 0 mos |
|
$225,300 |
$1,878 |
10% |
$524,800 |
23 yrs, 4 mos |
|
$376,100 |
$3,134 |
10% |
$352,600 |
9 yrs, 5 mos |
| Salary | Monthly Payment | % of Income | Total Cost | Time to Zero Debt |
|---|---|---|---|---|
|
$74,300 |
$619 |
10% |
NA |
NA |
|
$74,300 |
$1,239 |
20% |
NA |
NA |
|
$74,300 |
$1,858 |
30% |
$737,300 |
33 yrs, 1 mo |
|
$225,300 |
$1,878 |
10% |
$708,300 |
31 yrs, 6 mos |
|
$376,100 |
$3,134 |
10% |
$375,400 |
10 yrs, 0 mos |
Repayment of Medical and Law School Debt Timelines
The average debt of an undergraduate student is less than four times that of a law school graduate. Graduates with medical degrees have a higher chance of being eligible for student loan forgiveness provided they fulfill the strict requirements.
- High-earning physicians can pay off their student loans in as little as nine years and five months.
- First-year residents are unable to repay their student loans because their income is insufficient to cover the principal amount owed.
- The typical student loan debt for a medical school graduate is $257,500.
- $74,300 is a first-year resident’s annual salary.
- $225,300 is a general physician’s salary.
- $376,100 is an anesthesiologist’s salary.
- An average law school graduate’s student loan debt is $189,600.
- The average starting salary for a law school graduate is $65,600.
- $145,300 is an average salary for an experienced attorney.
- $195,400 is an average salary for a patent attorney.
| Salary | Monthly Payment | % of Income | Total Cost | Years to Zero Debt |
|---|---|---|---|---|
|
$65,600 |
$547 |
10% |
NA |
NA |
|
$65,600 |
$1,093 |
20% |
NA |
NA |
|
$65,600 |
$1,640 |
30% |
$318,300 |
16 yrs, 3 mos |
|
$145,300 |
$1,211 |
10% |
$521,600 |
35 yrs, 11 mos |
|
$195,400 |
$1,628 |
10% |
$320,300 |
16 yrs, 5 mos |
|
Salary |
Monthly Payment |
% of Income |
Total Cost |
Time to Zero Debt |
|
$65,600 |
$547 |
10% |
NA |
NA |
|
$65,600 |
$1,093 |
20% |
NA |
NA |
|
$65,600 |
$1,640 |
30% |
$366,500 |
18 yrs, 8 mos |
|
$145,300 |
$1,211 |
10% |
NA |
NA |
|
$145,300 |
$2,422 |
20% |
$269,800 |
9 yrs, 4 mos |
|
$195,400 |
$1,628 |
10% |
$370,100 |
19 yrs, 0 mos |
Private Student Loan Debt Repayment Timelines
Most private student loans originate with academic institutions, banks, and credit unions. Due to the lack of public record for most related data, it is challenging to track the total amount of debt incurred by private student loans.
- 4. The lowest known private student loan interest rate is 42%, and it is only available to borrowers with excellent credit.
- 10. The average low-end private student loan interest rate for the majority of borrowers is 22%.
- 16.62% is the high-end interest rate.
- The average student loan debt is between $20,000 and $40,000.
- 52. Six percent of indebted borrowers owe $20,000 or less in student loans.
- 32. Of the student borrowers who are in debt, 0% owe $10,000 or less in federal student loans.
- 15.2% of borrowers owe less than $5,000.
- 20. Six percent of borrowers owe between $10,000 and $20,000 on student loans.
- 18.2% owe $40,000 to $100,000.
- 7.6% owe $100,000 or more.
- 2.2% owe in excess of $200,000.
| Monthly Payment | APR % | Average Debt | Total Cost | Time to Zero Debt |
|---|---|---|---|---|
|
$621 |
4.42% |
$15,000 |
$15,700 |
2 yrs, 2 mos |
|
$621 |
4.42% |
$30,000 |
$33,100 |
4 yrs, 6 mos |
|
$621 |
4.42% |
$60,000 |
$74,300 |
10 yrs, 0 mos |
|
$621 |
10.22% |
$15,000 |
$16,900 |
2 yrs, 4 mos |
|
$621 |
10.22% |
$30,000 |
$38,800 |
5 yrs, 3 mos |
|
$621 |
10.22% |
$60,000 |
$126,700 |
17 yrs, 1 mo |
|
$621 |
16.62% |
$15,000 |
$18,400 |
2 yrs, 6 mos |
|
$621 |
16.62% |
$30,000 |
$49,900 |
6 yrs, 9 mos |
|
$621 |
16.62% |
$60,000 |
NA |
NA |
|
$1,241 |
16.62% |
$60,000 |
$99,900 |
6 yrs, 9 mos |
FAQ
How long does the average student loan take to pay off?
It typically takes 20 years for a student borrower to repay their student loan debt. Some recent professionals take more than 45 years to pay back their student loans. %2021% of borrowers observe an increase in their total student loan debt balance during the first five years of their loan.
How long to pay off $50,000 student loan?
How Much Time Will It Take To Pay Back $50,000 in Student Loans? A number of factors, such as your household size, personal income, graduation status, and loan types, will affect how long it takes you to repay your debt. Depending on the plan, IDR plans let you make payments for 20 or 25 years, after which any remaining funds are forgiven.
How long does it take to pay off $100 K student loans?
How long does it take to pay off $100K in student loans? While the average repayment plan lasts for ten years, there are loans with longer terms, meaning you might have to repay your debt for twenty or even thirty years.
How much is the monthly payment on a $70,000 student loan?
What is the monthly payment on a $70,000 student loan? Depending on the APR and loan term, the monthly payment on a $70,000 student loan can vary from $742 to $6,285. For instance, if you borrow $70,000 as a student loan and repay it over the course of ten years at a five percent annual percentage rate (APR), your monthly payment will be $742.
Read More :
https://educationdata.org/average-time-to-repay-student-loans
https://www.bankrate.com/loans/student-loans/how-long-to-pay-off-student-loan/