Understanding Income-Based Repayment (IBR)
Income-Based Repayment (IBR) is one of the most popular federal repayment plans. IBR can lower monthly bills and qualify for student loan forgiveness.
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:
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:
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
How long does student loan consolidation or refinancing take?
The biggest variable in both the refinance and consolidation timeline is usually the borrower.
IBR, PAYE, and REPAYE Calculations for Multiple Loans and Multiple Lenders
If you have multiple federal student loans or you are stuck with more than one federal servicer, the Income-Driven Repayment math might seem complicated. Fortunately, it is pretty easy.
Help! I owe 500k in student loans (that’s half a million!!)
Repaying $500,000 in student loans is an epic challenge, but even on a salary of $72,000 per year, it can be done.
Getting Lower Minimum Payments on Your Student Loans
Lowering monthly payments requires different approaches for private loans and federal loans. Fortunately, there are many paths to a reduced monthly bill.
Getting a Lower Interest Rate with Navient
Navient may temporarily reduce interest rates to help borrowers struggling with their loans. Learn how to apply for the Rate Reduction Program.
Rehabilitation or Consolidation for Defaulted Student Loans?
Consolidation is a quick fix to defaulted federal student loans. Rehabilitation takes a bit longer but has some major advantages.
Managing your student loans when you are out of the country
Whether your a living abroad or on extended travel, it is important to have a plan in place to manage your student loan bills.
Paying for College for Borrowers Who Can’t Get a Cosigner
If you can’t find a cosigner and can’t get any more student loans, you might feel desperate. However, there are many resources available to help your situation.