What grads expect from student loan repayment—and the reality 20 years later

By Kaydee Ambas, CFEI® | Published on October 21, 2025

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Most recent grads believe they'll pay off their student loans within six years. But according to an Earnest survey, the average repayment period is closer to 20 years.

This disconnect—between expectations and reality—is more than just a numbers issue. It shapes how borrowers approach their finances, delays major life goals, and contributes to long-term stress. A recent Earnest survey of 500 recent graduates highlights just how widespread this misunderstanding is—and what today’s borrowers can do to take back control.

The repayment reality check

When we asked recent grads how long they expect it to take to repay their student loans, the average answer was six years. Unfortunately, that timeline doesn’t align with the national average. According to EducationData.org, it takes most borrowers two decades to fully pay off their loans.

That’s a 14-year difference—during which interest can compound, plans can stall, and financial goals can stay out of reach.

The emotional toll is real. In our survey:

• 87% of grads said they plan to delay major life goals because of student debt
• 41% will delay buying a home or car
• 27% will delay saving for retirement

Long-term repayment isn't just a financial burden—it’s a barrier to independence and future planning.

Why this disconnect exists

So why do so many borrowers have unrealistic expectations? Much of it comes down to a lack of financial education and support. In our survey:

• 80% said they didn’t really understand what they were signing up for when they took out loans
• 67% felt unprepared to start repayment after graduation
• Only 43% said they felt confident explaining how interest rates work
• Just 23% could explain how much they owe and why

Without a clear understanding of how repayment works—or how interest builds over time—it’s easy to underestimate how long loans will linger.

What borrowers can do now

The good news? While most borrowers can’t erase their loans overnight, there are ways to reduce the burden and make repayment more manageable.

Start with these steps:

• Get clear on your current balance, interest rate, and payoff date
• Create a realistic budget that includes your loan payments
• Make extra payments when possible to reduce interest costs

For borrowers with a strong credit profile and steady income, refinancing could be a powerful option. Refinancing allows you to replace your current loan with a new one—often with a lower interest rate or better repayment terms. That could mean a lower monthly payment, faster payoff, or both.

If your original loan isn’t working for your life anymore, refinancing may help you find a better fit. Explore your refinancing options with Earnest.

Rewriting the repayment story

The student loan journey isn’t easy—especially when the reality doesn’t match your expectations. But understanding the full picture is the first step toward taking control.

Whether you’re just starting repayment or years into it, know that there are ways to manage your debt more strategically. With better tools, more transparency, and continued financial education, today’s grads have the power to rewrite their repayment story—and reclaim their financial future.