What’s the most popular student loan term—and how to choose the best one for you

By Corey Buhay | Published on October 21, 2025

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Your student loan term has a huge impact on how much your loan will cost you—both month to month, and over the long run. Some students opt for terms as short as 5 years, while others choose to make payments for 20 years or more. With such a wide range of options, it can be tough to zero in on the best student loan term for your needs.

While the choice is ultimately a personal one, it can be helpful to know what your peers are doing. So, we combed through years of internal data and distilled it into some benchmark numbers you can use to anchor your own decision. Here are the terms Earnest borrowers choose.

The most popular terms for student loans

Among Earnest clients, the 10-year loan term is by far the most popular. It’s the term of choice for nearly half of all borrowers, possibly because it mirrors the 10-year standard loan term, which is the default for federal loans. The 5-year term takes second place, at just over 31% of Earnest customers. In third, you’ll find the 15-year term. This term tends to be more common among students with higher loan balances since it gives folks more time to pay off those larger amounts.

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The benefits of longer vs. shorter loan terms

Every loan term comes with trade-offs. Generally:

• Longer terms = lower monthly payments, but more total interest
• Shorter terms = higher monthly payments, but less total interest

If you have a cosigner, that might also influence which term you choose.

Longer loan terms: pros and cons

Longer loan terms spread the cost of your loan across many months, splitting your principal into more (but smaller) chunks. Translation: lower monthly payments. If you have limited breathing room in your budget, a longer term can dramatically reduce your financial stress from month to month.

However, because interest accrues over time, a longer loan term also means more interest paid over the life of the loan. So, a 15-year term will cost you more in the long run than a 5- or 10-year term. The other downside to a longer term is that, if you have a cosigner, your financial health will be tied to theirs for a longer period of time. That can be risky for your cosigner—especially if they’re hoping to take out a mortgage, auto loan, or small business loan in the near future.

Shorter loan terms: pros and cons

Shorter terms, on the other hand, tend to cost less overall because interest has less time to accrue. Many lenders also offer short-term borrowers lower rates because a short term presents less risk to the lender. That can help you save even more.

However, short loan terms can be stressful for borrowers because they’re more intense: They come with high monthly payments, which can mean much less financial flexibility during the years you’re making payments.

If you have a cosigner, that person might encourage you to choose a shorter loan term. The longer you’re hitched to your cosigner, the longer they’ll have to navigate credit impacts due to their affiliation with your debt. If your lender doesn’t offer a cosigner release option (and if you don’t expect to be able to refinance on your own anytime soon), a shorter loan term is a good way to give your cosigner a guaranteed escape route.

Short vs. long loan terms: a case study

Let’s use the Earnest student loan refinancing calculator to look at the numbers. Say you borrowed $10,000 at a 4% fixed interest rate. If you choose a 10-year loan term and start making full payments right away, you’ll only have to pay $101 each month, but you’ll pay nearly $2,150 in interest over time.

Now let’s say you got the same loan but with a 5-year term. You’ll have to pay $185 per month—significantly more. However, you’ll only pay $1,100 in interest over the life of the loan. And you’ll become debt-free within just 5 years.

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Rate and payment examples listed above are for illustrative purposes only and may not be representative of rates or terms offered by Earnest.

How to choose a student loan repayment term

Studying your peers’ choices can be helpful, but the student loan-term comparison game can only get you so far. At some point, you’ll need to sit down and consider your personal budget, financial goals, and cosigner’s preferences. Here are a few questions to ask yourself.

What can you afford?

If you have a high loan balance, you might not be able to afford to pay it all off right away. In this case, a longer loan term will help you make your payments consistently and sustainably. A shorter loan term, on the other hand, might just cause you undue stress and put you at risk of defaulting. Besides, as long as your lender doesn’t charge prepayment penalties, you can always pay off your loan ahead of schedule if your financial situation improves.

If you have significant cash reserves, high income, and/or a low principal balance, it might be smarter to pay off your loan on a shorter timeline. This could save you hundreds if not thousands of dollars in the long run.

What are your goals?

If you’re planning to move, start a family, or take on other significant expenses in the next year or two, a longer loan term—and therefore a smaller monthly payment—might free up more cash in your immediate budget. That means more liquid cash to cover your near-future goals.

However, if you’re hoping to take out another big loan or line of credit in the future, this calculus might change. Let’s say you want to purchase a home or launch a small business in 5 to 10 years. In this case, it might be smarter to pay off your student loan debt as fast as possible. That way, you’ll have a lower debt-to-income ratio and will likely qualify for better rates on your mortgage or business loan.

What does your cosigner have to say?

If your cosigner is hesitant about having their finances intertwined with yours for a long time, a shorter loan term might be best for your relationship. However, a longer term could still be a perfectly reasonable way to keep costs low if:

• Your cosigner doesn’t have a preference,
• Your lender offers a cosigner release option you can utilize partway through your term,
• You think you can qualify to refinance your loans—and therefore take them all under your own name—within the next few years.

If any of those things are true, then you might be able to maintain both a longer loan term and a healthy cosigner relationship at the same time.

Calculate the best student loan term for your needs

Every loan term comes with its benefits and drawbacks. The right term for you will depend on what kind of monthly payment you can afford and how much total interest you’re willing to take on. Want to know how those numbers shake out for you? Use our student loan calculator to compare your options. And check your rate for a student loan refinance to see what kinds of terms you qualify for. It takes two minutes and won’t affect your credit score.

About the Author

Corey Buhay

Corey Buhay is a writer and editor based in Boulder, Colorado. She’s passionate about literature, the outdoors, and doing her taxes by hand. She has been writing about student loans and personal finance for Earnest since 2019. You’ll find her work in Outside Magazine, Backpacker Magazine, Smithsonian, and The Denver Post.

Disclaimer

This blog post provides personal finance educational information, and it is not intended to provide legal, financial, or tax advice.