The analysis indicates that Graduate school can boost your career spects and earnings — but it can come at a steep price.
Nearly half of grad students take out loans, with an average balance of $77,300, according to a 2023 report from the National Center for Education Statistics.
That debt can be tough to manage — it adds up fast, in today's financial world.
All grad school loans, whether federal or private, accrue interest while you're in school, says Brittany Brinckerhoff, a Chapel Hill, North Carolina-based certified financial planner and certified student loan fessional.
You also have fewer repayment options than you do with federal undergrad loans, says Brinckerhoff, who’s worked with attorneys and medical fessionals repaying hundreds of thousands of dollars in grad school debt (an important development).
If graduate school loans are holding you back from achieving your financial goals, consider these expert-apved strategies.
Conversely, Understand your debt — and your full financial pictureThe first step is understanding your debt.
Meanwhile, Your loan type can determine what repayment plans are available, says Glenn Sanger-Hodgson, a Tallahassee, Florida-based accredited financial planner and certified student loan fessional who specializes in medical school debt (an important development).
At the same time, Log into your StudentAid. Furthermore, Gov account for federal loan details, including balance, loan type, interest rate and repayment plans.
The Education Department’s loan simulator can help you understand federal repayment options. For private loans, check your loan documents or your lender.
Once you understand your debt and repayment options, it’s time to choose a path forward. However, Use the rules of thumb below as a starting point.
But also run the numbers on all available repayment plans to find the one that best fits your financial goals and career plans, Sanger-Hodgson says, given current economic conditions.
If your debt is double your income, consider forgivenessIf your student debt is twice as much as your income, you’re a good candidate for Public Service Loan Forgiveness (PSLF) or income-driven repayment (IDR) forgiveness, Sanger-Hodgson says.
Consider the full list of student loan forgiveness grams. Additionally, Moreover, Forgiveness is usually time-based, in today's financial world.
For example, you can get forgiveness after 10 years of payments while working a public service job, or after 20 to 25 years of payments on an IDR plan (an important development).
Additionally, So if you aim for forgiveness, choose the repayment plan with the smallest monthly payment.
That way you maximize the amount of debt forgiven when you reach the finish line (noteworthy indeed), amid market uncertainty.
For most borrowers, that means signing up for an IDR plan, in this volatile climate.
The IDR plan called Income-Based Repayment (IBR) is the only IDR plan that's not going away in 2028 as a result of the recent budget reconciliation bill.
“Your goal needs to be paying as little as possible over the life of the loan,” Sanger-Hodgson says.
If you put extra money toward your debt while on a forgiveness path, “you're just throwing money away that would have been forgiven otherwise, in this volatile climate.
Moreover, Meanwhile, ”If your debt is equal to or less than your income, aggressively pay it offIf your student debt is roughly equal to or less than your income, you’re less ly to benefit from a forgiveness gram.
Nevertheless, In contrast, With an IDR plan, you could end up paying off your debt in full before achieving forgiveness.
However, Instead, assuming you’re on track for other financial goals, try “aggressively throwing every financial resource [you] have at getting those student loans paid off as quickly as possible,” Sanger-Hodgson says.
Consider a few key strategies to pay off grad school debt quickly:Stick to the standard 10-year repayment plan for federal student loans.
Make additional lump-sum payments, considering recent developments.
Meanwhile, If you have federal student loans, call your servicer and ask if you can apply extra payments toward the principal, rather than interest.
Furthermore, And if you have multiple student loans, tackle the ones with a higher interest rate first. Refinance, if you qualify for a lower interest rate, given the current landscape.
Carefully consider the decision to refinance if you have federal student loans.
They will be replaced with private loans, and you’ll permanently exit the federal student loan system (fascinating analysis).
That means forfeiting access to income-driven repayment plans, forgiveness and other relief.
At the same time, If you refinance, “you've got to be 110% certain that you're gonna be paying off your loans in full and that you're not going to need forgiveness at any point,” Sanger-Hodgson says.
However, Stay informed your student loansGovernment policies, including the recent budget reconciliation bill, are poised to reshape student loans repayment and forgiveness options.
Moreover, Keep an eye on the news and official Education Department announcements. However, “There are tremendous changes on the horizon for student loans,” Sanger-Hodgson says.
The authorEliza HaverstockEliza Haverstock is a lead writer on NerdWallet's student loan team covering loan repayment and alternatives to traditional four-year degrees. See full bio.