The Student Loan Sherpa

Student loans are often the subject of confusion.  To some, they are all pretty much the same.  To others, student loans are incredibly complicated and difficult to understand.

Before jumping into repayment strategy and digging into tips and tricks for eliminating the debt, it is critical that a borrower understand the basics of student debt.  Armed with a basic understanding of how student loans…

Strategy to Refinance Student Loans and Your Mortgage

Refinancing debt can be a powerful financial move.  The investment of time is relatively minimal and the process can save hundreds of dollars a month, and many thousands of dollars in interest over the life of the loan.  For this reason, many people choose to refinance their mortgage and their student loans.

Unfortunately, refinancing mortgages and student loans at the same time is typically a…

CFPB Organization Shuffle Could Mean Sweetheart Deal For Navient

In January of 2017, the Consumer Financial Protection Bureau aggressively went after federal student loan servicer Navient.  “At every stage of repayment, Navient chose to shortcut and deceive consumers to save on operating costs. Too many borrowers paid more for their loans because Navient illegally cheated them and today’s action seeks to hold them accountable” pronounced then CFPB Director…

Two Common Mistakes New Graduates Should Avoid

As the class of 2018 collects their diplomas, not all of these graduates will be jumping right into the job of their dreams.  Some may have an entry-level job that barely pays the bills.  Others may not have found a job in their desired field.  Worst of all, some may not even have a job at all.

While these employment circumstances may just be short-term setbacks, unforced student loan errors can…

Consolidation and Refinancing with Fedloan Servicing (myfedloan)

Fedloan Servicing, also known as myfedloan, is one of the largest servicers of federal student loans.  Though Fedloan Servicing has been entrusted by the government to manage billions of dollars in student loans, they often fall short of minimal quality standards expected by many borrowers and taxpayers.  The challenges of working with myfedloan make coming up with a strategy for student loan…

Is $100,000 in Student Debt a Good Idea?

As the price of education has skyrocketed, the use of student loans has similarly grown.  At present, Americans owe over $1.4 trillion on their student loans.  With so much debt being generated each year, many people mistakenly reach the conclusion that the loans are standard practice and necessary.

As more and more students rack up six-figures of student loan debt, we are long overdue to ask an…

Ask Sherpa: Dealing with Massive Federal Debt and No Hope

In today’s Ask the Sherpa, we hear from a reader who is paralyzed by her massive federal student loan debt and feels like she had no hope of ever paying it off or retiring.  To help with the hopelessness of the situation, we will take a look at the worst case scenario for the debt and the many ways in which things could realistically improve.

Dear Sherpa,

I am sure you get a lot of these…

The Fun Part of Student Loan Planning… Rewarding Yourself

Paying off student loan debt is an incredibly difficult task.  For most borrowers it takes years and can cost well over $100,000.

While there are many financial concepts that are important to understand, eliminating student debt is more than just an accounting issue.  Finding the motivation and willpower to pay off the loans is an essential component to any student loan repayment strategy.  For…

Another Example of MyFedLoan Servicing Nonsense

Federal student loan borrowers have almost no say in the company that manages their student loans.  These federal loan servicers also have very little direct oversight from the federal government.  This dangerous combination can result in a frustrating experience and numerous unnecessary issues for student loan borrowers.  Today we will take a close look at one example of a completely unnecessary…

Student Loan Borrowing Limits for Federal and Private Loans

Understanding the maximum possible student loan borrowing can be complicated.  Private loans have different rules than federal loans and federal loans have different rules for different students and a number of exceptions and loopholes.

This article will break down my the annual (yearly) and total lifetime limits for student loan borrowing.  To keep things as simple as possible, we will cover the…

Under the Radar Tricks to Knock Out Student Debt

Having a massive salary and making huge payments towards student loans is a great way to eliminate debt.  Same for refinancing at a lower interest rate.  The notion of a “side hustle” or living with parents to save on rent has also thoroughly been covered.

Today we will look at a few strategies that aren’t necessarily obvious, but can make a huge difference in student loan repayment.

Don’t Wait…

Student Loans, PMI and Mortgage Down Payments

Many student loan buyers face a difficult decision when they buy a home.

Mortgage lenders generally require a 20% down payment on the home in order to avoid Private Mortgage Insurance, known as PMI.  For this reason, many homebuyers opt to set aside 20% before making a purchase.

The dilemma for student loan borrowers is that each dollar that is used towards a down payment, is a dollar that cannot…

Four Questions To Ask BEFORE Getting Another Student Loan

Attending college and getting a degree is a key factor in future financial success.  However, borrowing student loans can have devastating financial consequences.  Students who do not have parents or scholarships covering their education need to be extremely careful when it comes to using student loans.

Before borrowing, any student should ask themselves the following:

1) Do I absolutely need this…

Is It Possible to Earn Too Much To Qualify for PSLF?

In this edition of the Student Loan Sherpa Mailbag we take a look at Steve’s Public Service Loan Forgiveness (PSLF) dilemma.  He is just a few years away from qualifying for Public Service Loan Forgiveness, but a big jump in salary has him thinking it might be making too much money for PSLF to be an option.  If you have a question for the Student Loan Sherpa, feel free to ask us.

Steve writes:

He…

Time To Get Serious About Loan Repayment

The trouble with student loans is that procrastination is really expensive.  Many borrowers fall into the trap of kicking the proverbial can down the road, only to learn that each kick costs money.  Whether by deferments, forbearances, or burying their heads in the sand, borrowers who put off paying down student loan balances spend far more in the long run.  We often call these borrowers a…

Paying Off The First Student Loan Is The Hardest

Eliminating student debt may seem like an impossible task.  Whether the balance is $5,000 or $500,000; many graduates feel trapped and helpless due to their debt.  Many feel like they will be making student loan payments for life.

In many ways, even getting one loan paid off is a huge obstacle.

The good news?

Once that first loan is paid off, things get better.

The First Loan is the Hardest

When…

Don’t Be Your Lender’s Dream Borrower

In the eyes of student loan lenders, some borrowers are far more profitable than other borrowers.

As borrowers, if our lenders are making a huge profits, it is usually a sign that we are doing something wrong.  These mistakes are often both expensive and easy to avoid.

Mistake #1: Only Paying the Minimum

In some cases, paying the minimum makes sense.  If you have a 2 0r 3% interest rate, there…