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.

Last Updated: March 31, 2023

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.

Last Updated: March 31, 2023

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.

Retroactive Loan Forgiveness and Fixing PSLF Rejections and Errors

Retroactively fixing Public Service Loan Forgiveness issues would be great, but outside of one limited program, options are limited.

plan switch from ibr to repay calculation

Student Loan Plan: Moving from IBR to REPAYE

Switching from IBR to REPAYE has major benefits, but some couples will need to do some math to find the best option.

Cosigners on Student Loans: A Last Resort Option

Lenders have made cosigning on student loans a routine practice, but cosigning any loan is a risky decision with major consequences.

Getting Married: Do I Refinance and Abandon PSLF?

Marriage can change the math on student loan forgiveness. In some cases, shifting to an aggressive repayment strategy is better than sticking with Public Service Loan Forgiveness.