25- or 30-Year Student Loan Refinance: What to Know About Extending Your Repayment Term
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Editor’s note: Lantern by SoFi seeks to provide content that is objective, independent and accurate. Writers are separate from our business operation and do not receive direct compensation from advertisers or partners. Read more about our Editorial Guidelines and How We Make Money.
What Is Student Loan Refinancing?
Extending Your Repayment Term
Extended Repayment Term
Direct Subsidized Loans Direct Unsubsidized Loans Direct PLUS Loans Direct Consolidation Loans Subsidized & Unsubsidized Federal Stafford Loans Federal Family Education Loan (FEEL) PLUS Loans & FFEL Consolidation Loans
Made for up to 25 years A fixed or graduated amount Typically lower than payments made through Standard and Graduated Repayment Plans
Income-Driven Repayment
Income-Based Repayment
Income-Contingent Repayment (ICR)
What a borrower would pay on a repayment plan with a fixed monthly payment over 12 years, adjusted based on their income 20% of the borrower’s discretionary income divided by 12
Pay As You Earn (PAYE)
Revised Pay as You Earn (REPAYE)
Which Private Refinancing Lenders Offer Student Loan Term Longer Than 20 Years?
Eastman Credit Union
Nelnet Bank
Pros and Cons of Refinancing to an Extended Term
Lower monthly payments A lower interest rate The ability to lengthen or shorten your repayment period The ease of making payments in one place The option of adding a cosigner
Losing the perks and protections of federal student loan plans, like federal student loan forgiveness Missing out on the student loan payment and interest freeze that’s been in effect since the CARES Act passed in March 2020 and is scheduled to end August 31st, 2022 Stricter eligibility requirements in some cases (borrowers will likely need a good credit score and a low debt-to-income ratio)
Student Loan Refinancing Options With Lantern
Frequently Asked Questions
Photo credit: iStock/LeoPatrizi
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About the Author
LeeMarie Kennedy is a Boston-based copywriter and content creator with over a decade of experience writing for a variety of publishers, institutions, and corporations. She has spent the last few years focusing on writing for financial services, technology, HR and TA, and health & wellness sectors. LeeMarie has a BA in Journalism from Quinnipiac University and a MS in Organizational Communication from Northeastern University and was an original contributor to The Daily, SoFi's newsletter.
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