The weight of student debt can creep into every part of daily life. Thankfully, there are a few ways to make that burden lighter. Some plans offer lower repayments, and others can even erase the balance. If you’re looking to pay less on your student debt and reclaim your financial freedom, here are 10 options that can change the game for borrowers.
Income-Driven Repayment (IDR) Plans
Monthly payments under IDR plans adjust based on income and family size, with some borrowers qualifying for the $0 bills. After 20–25 years, the remaining balance can be forgiven, though it’s taxable unless under PSLF. Options include PAYE and IBR, each offering varying perks depending on borrower eligibility and loan history.
Public Service Loan Forgiveness (PSLF)
Full-time public sector workers may have their entire loan balance erased after 120 qualifying payments. This tax-free forgiveness works best when paired with an IDR plan. However, administrative missteps can delay results. Despite that, the program has already canceled over $70 billion in student debt across eligible applicants.
SAVE Plan (Saving On A Valuable Education)
Monthly payments under SAVE stay capped at 5% of discretionary income, which makes it the most generous IDR plan yet. Forgiveness may arrive even sooner for smaller balances, and filing taxes separately can lower spousal-income-based payments. Built-in interest protection also prevents the debt from snowballing out of control.
Graduated Repayment Plan
Initial payments start low and increase every two years, which gives borrowers time to grow their income. Still, this design results in more interest paid by the end. Since it doesn’t qualify for forgiveness by itself, it’s best suited for those focused more on cash flow than long-term cost.
Extended Repayment Plan
Stretching loan payments across 25 years, this plan provides relief through reduced monthly costs. No proof of income is required, so it’s widely accessible for those owing $30,000 or more in direct loans. Parent PLUS borrowers must consolidate to qualify, but the trade-off is higher total interest over time.
Income-Based Repayment (IBR)
Some federal loan borrowers can cap monthly payments between 10% and 15% of discretionary income under IBR. Loan writeoff becomes possible after 20–25 years of qualifying payments. Because earlier versions aren’t as flexible, it’s important to confirm which one applies to avoid missing out on better terms.
Standard Repayment Plan
Fixed monthly payments are spread over 10 years in this option, a setup that provides the fastest payoff method with the least interest owed, if completed as scheduled. Automatically assigned to most federal borrowers, it doesn’t qualify for forgiveness alone but works with PSLF for those in qualifying public roles.
Teacher Loan Forgiveness
Five years of full-time teaching in an eligible low-income school can earn up to $17,500 in loan forgiveness. Special education and science teachers qualify for the highest amounts. While PLUS loans are excluded, they can still be paired with PSLF to reduce overall debt for qualifying educators.
Military Student Loan Repayment Programs
Some branches of the military give loan repayment as part of enlistment deals. These programs can pay up to $65,000 in federal student debt. However, keep in mind that not every role qualifies, and combining this benefit with other forgiveness plans may lead to conflicts. Also, GI Bill benefits are entirely separate from this option.
Refinancing for Lower Interest Rates
Switching from a federal to a private lender can lower interest rates or reduce monthly payments, but it comes at a cost. Refinancing drops eligibility for federal forgiveness programs. That trade-off may work for high-income earners with strong credit, especially if they want to ditch federal loan restrictions.
