minimum payment student loans

What to do when you can only afford the minimum payment

The Sherpa Blog, Student Loans 2 Comments

Making the minimum payments on your private student loans is an incredibly expensive way to pay off debt.  Going this route can often mean that your payments go mostly to interest and barely touch the principal balance on your loans. While it may be great news for your lender, it is …

The SherpaWhat to do when you can only afford the minimum payment
avoiding federal student loan default

Students Take Stand: Refuse to Pay Federal Student Loans

The Sherpa Blog, News, Student Loans 1 Comment

They are called the “Corinthian 15″ and this group of former students have elected to ignore their federal government student loan bills.  According to the group, backed by an Occupy Wall Street offshoot, the federal government failed them.  They claim that the Department of Education allowed Corinthian schools to lie about …

The SherpaStudents Take Stand: Refuse to Pay Federal Student Loans
student loan observations

Surprising Student Loan Borrower Observations

The Sherpa Blog, Student Loans 1 Comment

This month marks the second anniversary of the Student Loan Sherpa.  Over the past two years I’ve had the privilege of interacting with a ton of student loan borrowers.  In that time I’ve learned a couple very interesting things about the average student loan borrower. Most borrowers spend more money …

The SherpaSurprising Student Loan Borrower Observations
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Student Loans and Mortgage Calculations

The Sherpa Blog, Student Loans 1 Comment

The other day I spent a while on the phone with a couple of mortgage lenders.  The subject of discussion was mortgage math.  Specifically, we were discussing how student loans could impact mortgage eligibility.  Some of what I learned was surprising. Before I get into the conversation specifics, it is …

The SherpaStudent Loans and Mortgage Calculations
bank math extra student loan payments

Managing Student Loans During School

The Sherpa Blog, Student Loans 1 Comment

The biggest concern for a student, or parent, about college financing should be keeping student debt under control. Full scholarships to play football would be ideal, but not everyone is able to get their education paid for. As the price of education continues to grow, student loans have never been …

The SherpaManaging Student Loans During School
Student Loan Forgiveness Risks and Dangers

Four Big Risks when Planning for Student Loan Forgiveness

The Sherpa Blog, Student Loans 4 Comments

Getting your federal student loans forgiven seems like a dream come true.  The federal government offers great repayment plans like IBR and PAYE.  For many, it means making payments based upon your income for 20 to 25 years, and then the balance disappears.  For public servants, it is 10 years …

The SherpaFour Big Risks when Planning for Student Loan Forgiveness
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Thoughts on Negotiating a Lower Rate with Your Lender

The Sherpa Blog, Lower Payments, Mailbag, Student Loans 1 Comment

A recent reader email described a very interesting situation.  The reader contacted Sallie Mae asking to sign up for the rate reduction program.  Sallie Mae (now Navient) informed him that they would be wiling to lower his rate to 3% for a year, but there was a catch.  Lowering the …

The SherpaThoughts on Negotiating a Lower Rate with Your Lender
parent plus loans forgiveness retirement

Public Service Forgiveness for Parent PLUS Loans

The Sherpa Blog, Mailbag, Student Loans 2 Comments

Parent PLUS loans are in many ways the black sheep of the federal student loan system.  Federal loans are usually considered to be far superior to private loans, in part because of the great repayment plans and forgiveness programs that are available through the federal government.  Unfortunately, many of these …

The SherpaPublic Service Forgiveness for Parent PLUS Loans
corinthian cfpb settlement

Government Announces 480 Million In Student Loans to be Forgiven

The Sherpa Blog, News, Student Loans 1 Comment

The Consumer Financial Protection Bureau (the CFPB) recently announced that it had reached an agreement with ECMC Group, the company that was purchasing a number of Corinthian schools.  You may recall that, Corinthian was the subject of a massive lawsuit by the CFPB. Essentially, ECMC was aware that as the new …

The SherpaGovernment Announces 480 Million In Student Loans to be Forgiven