When does your student loan repayments stop?
You have two years left on your student loans.
That’s a long time for some.
In fact, most borrowers will be paying off their student loans in 2023, the year the US Department of Education (DOE) releases its latest data on student loan repayment rates.
That means if you have an undergraduate degree, you’ll need to repay about $1,400 by 2023 if you want to stay in school.
That amount is higher than the amount you’ll have to pay if you’re still working full-time, or if you start taking on a new job.
But there are many students who will still be paying for their college education, and they’re paying it at a higher rate than others.
Here’s how your payments compare.
The average monthly payment for the 10-year repayment plan for a family of four is $2,723.
If you have a child in college, the average monthly payments for that family of five is $1.3, or $2.65 per month.
That works out to $2 per month for a child, $2 a month for two adults, or around $1 a day.
In some cases, it could be as little as $400 per month, depending on how much you earn.
If your income is around $150,000 per year, your average monthly repayment for that year is $6,000.
That is lower than the average for all US families of four in 2024, but still higher than average.
A typical family of three, with an income of $80,000, will pay $1 per month on average for their student loan payments.
That would translate into a payment of about $600 a month, a little less than half of the amount they’d need to pay on average to stay on the plan.
The 10-Year Student Loan Repayment Plan For the 10 years leading up to 2023.
The repayment plan that most students will take on when they graduate from college, called the 10 year repayment plan, is based on the average income for the family of the four individuals who took out the loan.
The default rate for that plan is 13.5%, which means that for every $100 you borrow, you pay $5 back to the government, or about $3,600.
In 2024, the default rate was just 6.5%.
That means for every dollar you borrowed, you paid just $2 back to taxpayers.
But that doesn’t mean that borrowers have to repay all of their loans all at once.
The government will forgive the loans in installments, and some borrowers can repay part of their student debt while still paying off the remainder of their loan, in which case the government pays the remaining balance over a two-year period.
The rates of repayment vary by income.
Families making less than $50,000 a year, who borrowed about $30,000 in 2026, will be able to pay off about 80% of their debt in 2027, compared to a default rate of more than 85%.
Families making more than $150.000 a person, who took on $35,000 of their first $50.000 loan in 2024, will need to borrow about $34,000 each year, for a total repayment of about 50% of the loan balance by 2027.
Families who have $150 a year or more will have to work off most of their $30 million debt in the first year of repayment, but that amount will drop gradually to about 20% by 2029.
The biggest difference between the repayment plans is the amount of time a borrower has to repay each loan.
Under the 10yr plan, for instance, borrowers have six months to repay their loans, whereas under the 5yr plan borrowers have two months to pay back their loans.
A default rate that high doesn’t make it ideal for everyone, however.
A lot of borrowers would benefit from having their loan balance forgiven and having their loans discharged before the end of the six-month grace period, but they’re not all going to be able afford that.
For example, borrowers who had to work very hard to pay their loans off will benefit the most from the 5 yr plan, while borrowers who didn’t have the best of intentions may not be able.
But if you were one of those borrowers, you may not have a chance.
The 6yr plan allows borrowers with less than a 5 yr repayment history to defer repayment until 2027 for up to three years, which means you’ll be able pay off your loan for a few more years than you would with the 5yrs plan.
But the 6yr loan will cost you more in interest payments, and it will take longer to pay down your loan.
If all of your loans are forgiven and discharged before 2027 and you still owe a total of $5,000 on your 10 yr plan and $10,000 for the 5 years, you will