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: July 19, 2021

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: July 19, 2021

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.

Deciding Between Parent PLUS Loans vs. Private Student Loans

Borrowers should almost always choose federal student loans over private loans. However, a private loan might work better than a Parent PLUS loan in some circumstances.

Getting a Lower Interest Rate from FedLoan Servicing (MyFedLoan)

MyFedLoan can’t lower your federal student loan interest rate. However, there are a couple tricks borrowers can use that result in interest savings.

Student Loan Repayment Strategy For Nurses

There are many great student loan resources available for nurses. However, it appears that most nurses do not have a student loan repayment strategy in …

Student Loan Payments Before Graduation and During Grace Period

As you finish college and enter your student loan grace period, there are opportunities that can make a huge difference on your student loans.

Student Loans and Your Debt-To-Income Ratio

Debt-to-income ratios have a huge impact on any credit decision. Student loan borrowers have opportunities to manipulate the numbers to improve future applications.