How is my Discretionary Income Calculated for Student Loan Payments?
If you are thinking about IBR, PAYE or REPAYE, learning how to calculate discretionary income can help save money on student loan payments.
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
Guide to Temporary Programs and Permanent Rules for Federal Student Loans
With some temporary federal student loans programs over, or nearly complete, borrowers have to track several different moving targets.
New Bankruptcy Rules Bring Hope to Federal Student Loan Borrowers
A new Department of Justice policy will make it significantly easier for federal borrowers to get bankruptcy relief on their student loans.
Biden’s New IDR Plan Hurts Teachers, Social Workers
There is a lot to like about the proposed new IDR plan, but a closer inspection shows some room for improvement.
Ranking the Six Biggest Student Loan Changes During the Last Three Years
Many significant rule changes have happened during the Covid-19 payment and interest pause. Some of these changes have been well publicized, while others got little attention.
Six Student Loan Tips for March 2023
Planning for the federal student loan repayment restart is the most pressing issue for most borrowers.
Covid-19 Relief: Refunds on Federal Student Loan Payments
Borrowers can now get refunds for federal student loan payments made during the Covid-19 pandemic. All borrowers should ask for a refund.
Why Did My Monthly IDR Payment Go Up?
Changes in monthly IDR bills are common. Several different possibilities could explain the increase.
Why Most* Borrowers Should Repay Private Student Loans First
*There are a few cases where knocking out federal student loans first makes sense. However, the majority of borrowers will benefit from prioritizing eliminating private loans.