Tips For Paying Off $200K in Student Loans Without Losing Your Mind

 November 25, 2020
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$200K student loan debt

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If you’re dealing with $200K of student loan debt or more, you might be feeling completely overwhelmed. While debt of this magnitude certainly takes time to pay off, it is possible to manage with the right strategies.

Here are 11 approaches that could help you deal with your student loan burden and work your way to a zero balance.

How to pay off $200,000 in student loans

1. Start by taking stock
2. Learn about your repayment options
3. Come up with your debt repayment plan of attack
4. Design a budget and stick to it
5. Automate savings for a debt payoff fund
6. Search for ways to increase your income
7. Resist the temptation of lifestyle inflation
8. Pay more than the minimum each month
9. Consider consolidating to simplify repayment
10. Refinance your student loans for lower rates
11. Explore loan forgiveness and repayment assistance programs
Plus: Final thoughts on conquering $200K in student loan debt

1. Start by taking stock

Before you can deal with your massive student loan debt, you first must make some order from the chaos. Get organized by tracking down your loans and writing them all down.

“You need to know exactly how much you owe and who you owe it to,” said Christian Barnes, a financial coach for Do Better Financial. “Make a list of each loan, the interest rate, minimum payment and the lender.”

Record your payment due dates so you know when your student loan bills are due. By getting this bird’s-eye view of your loans, you’ll feel more empowered to do something about them.

2. Learn about your repayment options

Once you’ve taken inventory of your student loans, your next step is to explore your repayment options. If you’ve got federal student loans, you have access to income-driven plans, graduated repayment, extended repayment, consolidation and other options.

Income-driven plans end in loan forgiveness after 20 or 25 years, which could be worth the wait if you don’t have the means to pay off your debt sooner. At the same time, you’ll end up paying a lot of interest over the life of your loan.

What’s more, changing your repayment plan can trigger interest capitalization, meaning your interest gets added to your principal amount — so make sure you understand the pros and cons of any repayment plan before making a change.

With private student loans, you’re typically stuck with the plan you agreed to when you borrowed unless you refinance for new terms. Some private lenders also offer deferment if you run into financial hardship.

If you can swing it, you can always make extra payments without penalty, regardless of your repayment plan.

3. Come up with your debt repayment plan of attack

Along with comparing your repayment plan options, come up with a plan of attack for your loans. Many borrowers swear by the debt snowball and debt avalanche methods of debt repayment, for example.

“The debt snowball method is what I used and suggest to clients,” Barnes said. “Write your debts down smallest to largest, make minimum payments on everything, throw any extra money at the smallest debt until it’s gone, then rinse and repeat for each debt as needed. Seeing the debts drop as you go keeps you motivated for the long haul.”

While the debt snowball method can keep you motivated, you might prefer the debt avalanche method, which involves targeting loans with the highest interest rate first. The choice is yours, but when it comes to how to pay off $200K in student loans, taking a systematic approach can help you stay on track.

4. Design a budget and stick to it

Designing a budget is a key step when paying off a large amount of debt. Take a look at your income and expenses, then set realistic savings and debt payoff goals.

Whether you use a budget-tracking app, an Excel spreadsheet or a piece of paper, tracking your spending will help you feel more in control of your money.

“Managed money goes farther,” Barnes said. “You get to tell your money what to do instead of wondering where it went.”

5. Automate savings for a debt payoff fund

Saving money is challenging, which is why Yaz Purnell, student loan borrower and founder of personal finance site The Wallet Moth, recommends automatically setting aside a certain percentage of your income into a savings account specifically earmarked for debt payoff.

“Get a separate savings account from your day-to-day account and start sending a percentage of your income to that separate account the same day you get paid, every month,” Purnell said. “Depending on your circumstances, you could afford 10% of your income, just 1% for now or even 20% if you make real sacrifices on your spending elsewhere.”

Thanks to the automatic transfers on payday, you can’t spend the cash before you save it, and you’ll accrue a healthy debt fund to pay off your student loans.

6. Search for ways to increase your income

Scrimping and saving will only take you so far if you’re working on a limited budget. Finding ways to increase your income will help put your financial goals within reach.

“Making regular payments is a great start, but if you don’t want this payoff plan to take 10 to 15 years, you’ll need to get creative,” Barnes said. “That could mean a second job or side hustle, selling stuff or choosing different living arrangements (staying with parents, renting a room, etc.).”

Whether you find a new job, ask for a raise at your current one, work a side hustle or start your own business, adding some supplemental income could help you chip away at your student loan balance even faster.

7. Resist the temptation of lifestyle inflation

When you start making more money, it’s tempting to upgrade everything in your life. But if you increase your rent, car payments and other expenses, you’ll find yourself back at square one.

So even if you’re making a lot of money after earning your dental, law, medical or another degree, try to keep living like a student for a few more years. This sacrifice will be worth it if you can get out from under the shadow of six-figure student loan debt.

8. Pay more than the minimum each month

Although your repayment plan might span a certain time frame, you can pay off your loan faster. If you can swing it, pay more than you have to, whether on a monthly basis or once in a while.

These extra payments will speed up debt repayment and save you money on interest. For extra motivation, check out this student loan prepayment calculator to see how much you could save by throwing extra cash at your debt.

9. Consider consolidating to simplify repayment

The average student held 3.7 student loans in 2018, according to Experian, and you might have even more if you borrowed for both college and graduate school. If you’re juggling multiple federal student loans, consider consolidating to simplify repayment.

Through direct loan consolidation, you combine federal loans into one. Your interest rate will be the weighted average of your previous rates rounded up to the nearest one-eighth of a percent.

You’ll only have to track one bill for your federal loans each month, which could make your loan situation less confusing — just be careful about adding interest to your balance, since consolidation could be considered a capitalization event.

10. Refinance your student loans for lower rates

One of the best ways to save money on student loans is through refinancing. When you refinance, you could get a lower interest rate, which could save you thousands on such a big amount of debt.

Plus, you get the chance to choose new repayment terms, typically between five and 20 years. If you have strong credit and income (or can apply with a cosigner who does), you could be a strong candidate for student loan refinancing.

Refinancing multiple loans into one also helps you simplify debt payoff. Just be cautious about refinancing federal student loans, since this move turns them private and cuts off access to federal repayment plans and forgiveness programs.

11. Explore loan forgiveness and repayment assistance programs

Student loan forgiveness and repayment assistance programs are also worth exploring, especially if you’re drawn to work in a nonprofit or high-need area. The Public Service Loan Forgiveness program forgives federal loans after 10 years of working in a nonprofit or government agency (note, however, that the future of this program isn’t 100% guaranteed).

Private and state-run loan repayment assistance programs are also available for various professionals, with many of them offering significant awards after just two or three years of service. Unlike PSLF, many of these programs will help with private student loans as well as federal ones.

Finally, some employers offer student loan matching benefits, which could help you get rid of your debt faster. If you’re seeking a job, consider applying at companies that will help you pay off your debt.

Conquering $200K in student loan debt

Although $200,000 in student loan debt is an astronomical amount, paying it off isn’t impossible, especially if you’ve earned a valuable degree that will lead to a high-paying job or student loan forgiveness.

But you need to come up with a plan for conquering your debt, and you might have to keep your spending seriously low for several years while you prioritize debt payoff. Keeping a positive and proactive mindset will also help you achieve your goals.

“The most common debt payoff misconception is that people think getting out of debt is all about math, but it’s really about momentum,” Barnes said. “When you have a mountain of student loans, the most important thing you can do is find ways not to give up on the journey.”

So keep on keeping on, and remember there’s a light at the end of the tunnel. By exploring various strategies of debt repayment, refinancing and forgiveness, you can find the ones that work best for you.

Interested in refinancing student loans?

Here are the top 9 lenders of 2022!
LenderVariable APREligible Degrees 
1.74% – 8.70%1Undergrad
& Graduate

Visit Splash

1.74% – 7.99%2Undergrad
& Graduate

Visit Earnest

4.44% – 8.09%3Undergrad
& Graduate

Visit CommonBond

1.74% – 7.99%4Undergrad
& Graduate

Visit SoFi

1.89% – 5.90%5Undergrad
& Graduate

Visit Laurel Road

1.74% – 7.99%6Undergrad
& Graduate

Visit NaviRefi

2.05% – 5.25%7Undergrad
& Graduate

Visit Lendkey

1.86% – 6.01%Undergrad
& Graduate

Visit Elfi

& Graduate

Visit PenFed

Check out the testimonials and our in-depth reviews!
1 Important Disclosures for Splash Financial.

Splash Financial Disclosures

Terms and Conditions apply. Splash reserves the right to modify or discontinue products and benefits at any time without notice. Rates and terms are also subject to change at any time without notice. Offers are subject to credit approval. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet applicable underwriting requirements. Not all borrowers receive the lowest rate. Lowest rates are reserved for the highest qualified borrowers. If approved, your actual rate will be within a range of rates and will depend on a variety of factors, including term of loan, a responsible financial history, income and other factors. Refinancing or consolidating private and federal student loans may not be the right decision for everyone. Federal loans carry special benefits not available for loans made through Splash Financial, for example, public service loan forgiveness and economic hardship programs, fee waivers and rebates on the principal, which may not be accessible to you after you refinance. The rates displayed may include a 0.25% autopay discount

The information you provide to us is an inquiry to determine whether we or our lenders can make a loan offer that meets your needs. If we or any of our lending partners has an available loan offer for you, you will be invited to submit a loan application to the lender for its review. We do not guarantee that you will receive any loan offers or that your loan application will be approved. Offers are subject to credit approval and are available only to U.S. citizens or permanent residents who meet applicable underwriting requirements. Not all borrowers will receive the lowest rates, which are available to the most qualified borrowers. Participating lenders, rates and terms are subject to change at any time without notice.

To check the rates and terms you qualify for, Splash Financial conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, the lender will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

Splash Financial and our lending partners reserve the right to modify or discontinue products and benefits at any time without notice. To qualify, a borrower must be a U.S. citizen and meet our lending partner’s underwriting requirements. Lowest rates are reserved for the highest qualified borrowers. This information is current as of May 4, 2022.

2 Rate range above includes optional 0.25% Auto Pay discount. Important Disclosures for Earnest.

Earnest Disclosures

Student Loan Refinance Interest Rate Disclosure Actual rate and available repayment terms will vary based on your income. Fixed rates range from 2.99% APR to 8.24% APR (excludes 0.25% Auto Pay discount). Variable rates range from 1.99% APR to 8.24% APR (excludes 0.25% Auto Pay discount). Earnest variable interest rate student loan refinance loans are based on a publicly available index, the 30-day Average Secured Overnight Financing Rate (SOFR) published by the Federal Reserve Bank of New York. The variable rate is based on the rate published on the 25th day, or the next business day, of the preceding calendar month, rounded to the nearest hundredth of a percent. The rate will not increase more than once per month. The maximum rate for your loan is 8.95% if your loan term is 10 years or less. For loan terms of more than 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95%. Please note, we are not able to offer variable rate loans in AK, IL, MN, NH, OH, TN, and TX. Let us know if you have any questions and feel free to reach out directly to our team.

3 Important Disclosures for CommonBond.

CommonBond Disclosures

Offered terms are subject to change and state law restriction. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900), NMLS Consumer Access. If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown. ‍All Annual Percentage Rates (APRs) displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate. All variable rates are based on a 1-month LIBOR assumption of 0.15% effective Apr 22, 2021 and may increase after consummation.

4 Important Disclosures for SoFi.

SoFi Disclosures

Fixed rates range from 3.49% APR to 7.99% APR with a 0.25% autopay discount. Variable rates from 1.74% APR to 7.99% APR with a 0.25% autopay discount. Unless required to be lower to comply with applicable law, Variable Interest rates on 5-, 7-, and 10-year terms are capped at 8.95% APR; 15- and 20-year terms are capped at 9.95% APR. Your actual rate will be within the range of rates listed above and will depend on the term you select, evaluation of your creditworthiness, income, presence of a co-signer and a variety of other factors. Lowest rates reserved for the most creditworthy borrowers. For the SoFi variable-rate product, the variable interest rate for a given month is derived by adding a margin to the 30-day average SOFR index, published two business days preceding such calendar month, rounded up to the nearest one hundredth of one percent (0.01% or 0.0001). APRs for variable-rate loans may increase after origination if the SOFR index increases. The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. This benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. The benefit lowers your interest rate but does not change the amount of your monthly payment. This benefit is suspended during periods of deferment and forbearance. Autopay is not required to receive a loan from SoFi.

5 Important Disclosures for Laurel Road.

Laurel Road Disclosures

All credit products are subject to credit approval.

Laurel Road began originating student loans in 2013 and has since helped thousands of professionals with undergraduate and postgraduate degrees consolidate and refinance more than $4 billion in federal and private school loans. Laurel Road also offers a suite of online graduate school loan products and personal loans that help simplify lending through customized technology and personalized service. In April 2019, Laurel Road was acquired by KeyBank, one of the nation’s largest bank-based financial services companies. Laurel Road is a brand of KeyBank National Association offering online lending products in all 50 U.S. states, Washington, D.C., and Puerto Rico. All loans are provided by KeyBank National Association, a nationally chartered bank. Member FDIC. For more information, visit

As used throughout these Terms & Conditions, the term “Lender” refers to KeyBank National Association and its affiliates, agents, guaranty insurers, investors, assigns, and successors in interest.

  1. Checking your rate with Laurel Road only requires a soft credit pull, which will not affect your credit score. To proceed with an application, a hard credit pull will be required, which may affect your credit score.
  2. Savings vary based on rate and term of your existing and refinanced loan(s). Refinancing to a longer term may lower your monthly payments, but may also increase the total interest paid over the life of the loan. Refinancing to a shorter term may increase your monthly payments, but may lower the total interest paid over the life of the loan. Review your loan documentation for total cost of your refinanced loan.
  3. After loan disbursement, if a borrower documents a qualifying economic hardship, we may agree in our discretion to allow for full or partial forbearance of payments for one or more 3-month time periods (not to exceed 12 months in the aggregate during the term of your loan), provided that we receive acceptable documentation (including updating documentation) of the nature and expected duration of the borrower’s economic hardship. During any period of forbearance interest will continue to accrue. At the end of the forbearance period, any unpaid accrued interest will be capitalized and be added to the remaining principle amount of the loan.
  4. Automatic Payment (“AutoPay”) Discount: if the borrower chooses to make monthly payments automatically from a bank account, the interest rate will decrease by 0.25% and will increase back if the borrower stops making (or we stop accepting) monthly payments automatically from the borrower’s bank account. The 0.25% AutoPay discount will not reduce the monthly payment; instead, the discount is applied to the principal to help pay the loan down faster.

Assumptions: Repayment examples above assume a loan amount of $10,000 with repayment beginning immediately following disbursement. Repayment examples do not include the 0.25% AutoPay Discount.

Annual Percentage Rate (“APR”): This term represents the actual cost of financing to the borrower over the life of the loan expressed as a yearly rate.

Interest Rate: A simple annual rate that is applied to an unpaid balance.

Variable Rates: The current index for variable rate loans is derived from the one-month London Interbank Offered Rate (“LIBOR”) and changes in the LIBOR index may cause your monthly payment to increase. Borrowers who take out a term of 5, 7, or 10 years will have a maximum interest rate of 9%, those who take out a 15 or 20-year variable loan will have a maximum interest rate of 10%.


This information is current as of April 29, 2021. Information and rates are subject to change without notice.

6 Important Disclosures for Navient.

Navient Disclosures

You can choose between fixed and variable rates. Fixed interest rates are 2.99% – 8.24% APR (2.74% – 7.99% APR with Auto Pay discount). Starting variable interest rates are 1.99% APR to 8.24% APR (1.74% – 7.99% APR with Auto Pay discount). Variable rates are based on an index, the 30-day Average Secured Overnight Financing Rate (SOFR) plus a margin. Variable rates are reset monthly based on the fluctuation of the index. We do not currently offer variable rate loans in AK, CO, CT, HI, IL, KY, MA, MN, MS, NH, OH, OK, SC, TN, TX, and VA.

7 Important Disclosures for LendKey.

LendKey Disclosures

Refinancing via is only available for applicants with qualified private education loans from an eligible institution. Loans that were used for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not eligible for refinancing with a lender via If you currently have any of these exam preparation loans, you should not include them in an application to refinance your student loans on this website. Applicants must be either U.S. citizens or Permanent Residents in an eligible state to qualify for a loan. Certain membership requirements (including the opening of a share account and any applicable association fees in connection with membership) may apply in the event that an applicant wishes to accept a loan offer from a credit union lender. Lenders participating on reserve the right to modify or discontinue the products, terms, and benefits offered on this website at any time without notice. LendKey Technologies, Inc. is not affiliated with, nor does it  endorse,  any educational institution.

Subject to floor rate and may require the automatic payments be made from a checking or savings account with the lender. The rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is canceled, any increase will take the form of higher payments. The lowest advertised variable APR is only available for loan terms of  5 years and is reserved for applicants with FICO scores of at least 810.

As of 5/17/2022 student loan refinancing rates range from 2.05% APR – 5.25% Variable APR with AutoPay and 2.49% APR – 7.93% Fixed APR with AutoPay.

8 Important Disclosures for PenFed.

PenFed Disclosures

Fixed Rate Loan Terms: 5 years/60 monthly payments, 8 years/96 monthly payments, 12 years/144 monthly payments or 15 years/180 monthly payments. Annual Percentage Rate is the cost of credit calculating the interest rate, loan amount, repayment term and the timing of payments. Fixed rates range from 3.29% to 5.43% APR. Rates are subject to change without notice. Fixed APR: Fixed rates will not change during the term. This rate is expressed as an APR. Since there are no fees associated with this loan offer, the APR is the same percentage as the actual interest rate of the loan. These rates are subject to additional terms and conditions, and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change.