How Long Do Student Loans Last? 10-30 Years

Are student loans for 10 years or 20 years?Are student loans 30-year loans?Bottom Line

Predicting how long your student loans will last is challenging. The repayment terms for student loans differ from a home or auto loan. Those types of loans have fixed payment schedules with few forbearances, even fewer opportunities to change the repayment period, and nearly no programs that reduce or forgive the remaining balance. The limited repayment options let you reasonably forecast how long it’ll take you to pay off your home or car.

It’s hard to do the same for student loans — especially federal student loans. The U.S. Department of EducationU.S. Department of Education (ED)The federal agency that oversees federal student aid programs, issues regulations for federal student loans, and is the ultimate lender on Direct Loans. lets borrowers shorten or extend their repayment terms by changing plans or consolidating their debt into a new loan. It also lets them freely pause payments for several months at a time with deferments and forbearances. And it even lets people switch from a repayment plan that requires they pay the loan balance in full to one that forgives the remaining balance after 20 or 25 years of making student loan payments.

Private student loans have fewer repayment options than federal loans. But predicting how long they’ll last can still be difficult. Many lenders let borrowers make interest-only payments for years, keeping them in debt for much longer than expected. Plus, borrowers can also refinance their loans several times. Every time they do so, their repayment term may shorten or lengthen.

Basically, forecasting how long your student loans will last depends on the choices you make throughout the life of the loan.

Related: Student Loan Pause Extension 2023

Are student loans for 10 years or 20 years?

The repayment term for federal student loans is generally 10 years through the Standard Repayment Plan. But it can last from 20 to 30 years, depending on whether you consolidate your debt into a new loan or switch to one of the income-driven repaymentIncome-Driven Repayment (IDR)A category of federal student loan repayment plans that calculate monthly payments based on income and family size rather than loan balance. Any remaining balance can be forgiven after 20–25 years of qualifying payments. plans.

Here’s how long federal student loans last under the different payment plans:

• Standard Repayment PlanStandard Repayment PlanThe default federal repayment plan, which spreads loan payments evenly over 10 years — or up to 30 years for consolidation loans. It usually results in the lowest total interest paid among federal plans. – 10 years (up to 30 years for FFEL and Direct Consolidation Loans).
• Extended Repayment PlanExtended Repayment PlanA federal repayment plan that stretches payments out up to 25 years for borrowers with more than $30,000 in Direct or FFELP loans. Monthly payments are lower than the Standard Plan, but total interest paid is higher. – Up to 25 years, depending on the loan balance.
• Graduated Repayment PlanGraduated Repayment PlanA federal repayment plan where monthly payments start lower and increase roughly every two years, typically over a 10-year term. It is designed for borrowers who expect their income to rise over time. – Up to 10 years (up to 30 years for FFEL and Direct Consolidation Loans).
• Income-Driven Repayment Plans – 10 years if you qualify for Public Service Loan Forgiveness; 20 years if you only borrowed loans for undergrad; 25 years if you borrowed federal loans for grad school. When you consolidate, the new loan term can be up to 30 years, depending on your loan balance and the payment plan you choose.

Private student loans typically last 5 to 25 years, depending on the loan balance and lender. Check your promissory notePromissory NoteThe legal contract a borrower signs to receive a loan. It sets out the amount borrowed, the interest rate, repayment terms, and the borrower's obligations to the lender. or contact the loan servicerLoan ServicerThe company that manages a borrower's federal student loan account, processes payments, and handles applications for repayment plans, deferment, forbearance, and forgiveness on behalf of the U.S. Department of Education. to find the loan terms.

Related: How to Get a Copy of a Student Loan Promissory Note?

Are student loans 30-year loans?

Some federal student loans can have a 30-year term, but most will start with a 10-year term. You can extend that term by consolidating or enrolling in one of the income-driven repayment plans. Consolidating your student debt won’t lower your interest rate, but it may qualify you for loan forgiveness programs. It may also give you a lower monthly payment amount, especially if you have Parent PLUS Loans.

Related: Can’t Pay Parent PLUS Loans? Here are 6 Options

Related: Income-Driven Repayment Plan Forgiveness

Many private lenders offer terms between 5 and 20 years. You may be able to extend the term by refinancingRefinancingTaking out a new private loan to pay off one or more existing student loans, usually to lower the interest rate or change the repayment term. Refinancing federal loans into a private loan eliminates federal benefits like IDR and PSLF. with a new lender. To get a lower interest rate and better terms through student loan refinancing, you’ll need a good credit score and stable income or a cosignerCosignerA person who signs a loan agreement alongside the primary borrower and becomes equally responsible for repayment. Cosigners are common on private student loans when the student has limited credit or income history. with both. Use an online marketplace like Credible to shop with several lenders simultaneously.

\* President Biden announced that the Education Department is working on a new IDR plan that will cap payments for many federal student loan borrowers at 5% of their discretionary incomeDiscretionary IncomeFor federal income-driven repayment plans, a borrower's adjusted gross income minus a set percentage of the federal poverty guideline for their family size. Monthly IDR payments are calculated as a percentage of this amount..

Bottom Line

The amount of time it takes to pay back your debt from college depends on several factors. The biggest, though, is the student loan repayment plan you choose. If your goal is to get rid of your loans quickly, you’ll need to switch to a plan with the shortest repayment term or pay more than the minimum payment due.

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