Five Dangerous Student Loan Myths to Unlearn
Many borrowers cling to common misconceptions about student loans. Not having the facts right isn’t a mere inconvenience — its potentially very expensive.
Student Loan Sherpa Repayment Guide
A smart strategy to repay your student loans can save thousands of dollars on interest and eliminate loans years earlier than planned.
Written By: Michael P. Lux, Esq.
Published:
Student Loan Sherpa Repayment Guide
A smart strategy to repay your student loans can save thousands of dollars on interest and eliminate loans years earlier than planned.
Written By: Michael P. Lux, Esq.
Published:
The Tools to Eliminate Student Debt
There is a long list of resources to knock out federal and private student loans. For many borrowers, the ideal approach will be a combination of some of the programs below.
If you are brand new to student loan repayment, this guide is a helpful starting point.
Student Loan Forgiveness
- Not all student loans will qualify for loan forgiveness, but there are many different ways to get student debt forgiven.
- The most generous loan forgiveness program is Public Service Loan Forgiveness. Program eligibility is complicated, so qualifying is hard, but not impossible.
- Parent PLUS loans are not eligible for forgiveness, but they can be consolidated to gain eligibility.
Repayment Plans
- After many years of federal government tweaks, there is now a long list of federal repayment plans.
- Borrowers struggling with their federal loans often find relief on an Income-Driven Repayment Plan.
- If you are unemployed or struggling to get by, many federal borrowers qualify for monthly payments of $0 per month.
Cosigner Tools
- Cosigning for student loans is often a risky decision.
- When a borrower doesn't make payments, cosigners have few options.
- Lenders don't like to release cosigners from loans, but there are many different ways to remove a cosigner.
Sherpa Tips and Strategy
- Each month, I prepare a list of tips for borrowers based upon the latest news and market conditions.
- If your lender is unfair or misleads you, filing the right complaint can make a big difference.
- If you are confused or can't find the information you are looking for, feel free to send me an email.
Consolidation
- Federal student loan consolidation does not lower interest rates. Instead, consolidation, helps borrowers gain eligibility for some repayment plans and forgiveness programs.
- The Guide to Federal Consolidation explains how the process works and the risks.
- Borrowers looking for lower interest rates need to refinance their loans.
Lower Payments
- Getting lower payments is a great way to free up cash to attack high-interest debt.
- Many of the options to get lower interest rates also result in lower payments.
- Borrowers on income-driven repayment plans can often shelter income to qualify for lower monthly payments.
Latest Posts in Repayment
Important Deadlines for Temporary Federal Student Loan Programs
Several temporary programs are ending in the coming months. Most of these deadlines are unlikely to get extended.
Biden Extends Payment and Interest Freeze Into 2023
The latest extension gives borrowers more time, and new rules provide even more flexibility for the restart.
Tips for Borrowers While Biden Forgiveness is in Legal Limbo
Once again, federal student loan borrowers face an uncertain future. President Biden’s recently announced forgiveness program may not happen.
Extra Payments to Quickly Eliminate Student Loan Debt Could be a Mistake
Many borrowers prioritize paying off their student loan balances. This strategy isn’t the worst idea, but better options are often available.
Biden’s Student Loan Forgiveness Faces Serious Legal Issues in Texas
A Texas Judge has ruled the one-time student loan forgiveness program as unlawful. The decision seems shaky and is destined for an appeal.
Is More Student Loan Forgiveness or Cancellation on the Way?
Could another round of student loan forgiveness for all borrowers be coming? How long might it take?
Student Loan Forgiveness and Refunds: What Gets Taxed
After the initial excitement of student loan forgiveness or a refund, borrowers often worry about tax consequences.
Seven Student Loan Tips for November 2022
Planning for the federal student loan repayment restart is the most pressing issue for most borrowers.