Student Loan Repayment Guide
May 26, 2026 · 6 min read
Student loans are different from credit card debt. The interest rates are lower, the terms are longer, and there's an entire federal bureaucracy governing your options. Here's what actually matters for getting them paid off.
Federal vs Private: Know What You Have
This distinction changes everything. Federal loans offer income-driven repayment plans, deferment, forbearance, and forgiveness programs. Private loans offer none of that. If you're not sure what you have, log into studentaid.gov — it lists all your federal loans. Anything not there is private.
Federal Loan Repayment Options
Standard Repayment (10 years)
Fixed monthly payment. Highest monthly cost, lowest total interest. Default option — if you can afford it, stay on it.
Income-Driven Repayment (IDR)
Payment capped at 10-20% of discretionary income. Lower payments, longer term (20-25 years), more total interest. Any remaining balance may be forgiven but taxed as income.
Extended/Graduated Plans
Longer terms (up to 25 years) or payments that start low and increase. Only available for higher balances.
Should You Pay Extra on Student Loans?
It depends on the rate. Federal student loans are typically 4-7%. If you have credit card debt at 20%+, pay that first — every time. Use our debt payoff calculator to see the avalanche order: high-interest credit cards first, student loans last.
But if student loans are your only debt, and the rate is 6% or higher, paying extra makes sense. At 4% or below, you might be better off investing the difference — the stock market historically returns 7-10% annually. That's a personal decision, not a mathematical one.
What About Loan Forgiveness?
Public Service Loan Forgiveness (PSLF) still exists for qualifying government and nonprofit workers after 120 payments (10 years). IDR forgiveness exists after 20-25 years. But forgiveness programs change with administrations. Don't plan your life around forgiveness that might not be there. If you qualify, treat it as a bonus, not a strategy.
Private Student Loans
Private loans are basically unsecured personal loans with education branding. No forgiveness, no income-driven plans. Your best moves:
- Refinance if you can get a lower rate. Credit score 700+ and stable income? You might cut your rate significantly.
- Pay extra toward principal. Every extra dollar reduces future interest. Run the numbers with our debt calculator.
- Prioritize private over federal in your avalanche plan — private loans have fewer protections.
Student loans are a marathon, not a sprint. The most important thing is knowing whether you have federal or private loans, understanding your plan options, and making a conscious choice — not just paying whatever the servicer asks for.