5 Student Loan Repayment Tips For Graduates

By Student Loan Tutor’s Founder, Zack Geist


1. Use Income Driven Repayment and NEVER pay above the legal minimum

Almost nobody should be paying off their federal loans using Balance Based Repayment. And almost EVERYBODY qualifies for loan forgiveness. This is not a debt that benefits from a swift payoff. It is the only FORGIVABLE debt you have and is the only debt where you save money by LOWERING your payments.

2. Do Not Let Your Interest Capitalize

When interest “capitalizes” the outstanding interest gets added to the principal balance. This permanently increases the accruing interest for the rest of the life of the loan. This is the #1 reason why the balances can get so out of control so quickly. To avoid it, be on time with your annual paperwork (submit early!) and don’t use forbearance or deferment as a long term avoidance strategy.

3. Get all Direct Loans and enter the IDR plan “Revised Pay As You Earn”

You want to have all direct loans so you can qualify for the best plan, REPAYE (Revised Pay As You Earn). Occasionally there are good reasons to select a different plan. But REPAYE is the only plan that will subsidize negative accruing interest by 50%. If you have multiple loan types, leave the direct loans out of the consolidation. It is a rookie mistake to do a full consolidation when you already have direct loans in the mix.

4. Learn how to Document Household Size and Income Favorably!

Household size rules are much broader than they are with IRS Tax Dependants. You should be counting everybody you can that fits the rules. Alternative income documentation usually gives a lower payment versus using your tax return. If you are married, you should also learn when you need to (and when you don’t need to) count your spouse’s income.

5. Do not trust your servicers and follow up after submitting paperwork!

I’m sure that most of them mean well. But the Federal Loan Servicers are notorious for poor customer service and making mistakes! They are generally $12/hour employees with no proper training in this complex area of finance. And they have no incentive to save you money! Our team reports about a 30% error rate on the servicer side. This includes losing paperwork or miscalculating payment amounts. So it's critical to follow up three weeks after submitting any documents.

Is there anyone who was taught by the government or their university, how to properly navigate the Federal loan system to get the very best deal?

In our experience the answer is NO! Universities turn a blind eye to helping student's repay their student debts in the most cost effective ways. And the government loan servicers simply tick boxes and don't provide sound financial advice.

I started Student Loan Tutor because of this terrible gap in the system. I saw how burdensome these student loans can be. I spent the time to master the system. In the process I discovered that there are incredible opportunities to get great deals on repayment.

Student Loan Tutor does just what the name says. We TEACH people everyday how to navigate the system to get the best deals. But we can also handle ALL of the paperwork and servicer follow up for your student loans.

Our services save you both money and headache.

The way it works is that you first schedule a free consultation where one of our team members will make sure your situation is a good fit for our strategies and services.

If they are, the'll then schedule you on a Planning Call with one of our Loan Specialists.

On this call you'll learn your best options for reducing your monthly payments and the total loan cost.

This Planning Call costs $50, and is backed with a 100% money back guarantee if you didn't find it valuable.

From there you can file and each year re-certify everything yourself. Or you can hire us to implement the strategy, and file the paperwork each year.

Just like how you pay your accountant to strategize on and file your taxes.

Like to find out if we can help with your Federal Student Loans?

Schedule A FREE Evaluation Now!

Thousands of people trust us with their student loans every year.

I want to tell you the story of a recent client. To protect his privacy I’ll refer to him as 'Dr Joe'.

Everything else about his story is accurate.

Dr Joe came to us with $253,000 in remaining loans. He had been paying down the total amount ($290,000) in loans over the last 12 years on a 25 year balance based repayment plan.

He had gone through forbearance, deferments and consolidations. All the interest that he had outstanding ended up capitalizing.

Dr Joe had been paying between $1,500 and $1,900 per month for the last 7 years. Before we spoke, with the balance based plan he was on, he had 21 years of payments remaining.

He was going to pay an average of $2,050 per month over the next 21 years. His interest rate was 8.25%. So he’d end up spending a total of $521,902 to pay off his loans with that strategy.

A bad deal.

If he switched to a 10 year payoff, his total loan payoff would be $369,324. A $152,578 savings.

That's a good start, but we could do much better than that!

With the strategy we showed him, using the 5 tips above, he was able to qualify for a $0 payment right away and over a 25 year payoff his overall loan burden amount would be reduced to only $190,648.

That’s $331,253 in savings, plus getting $1,900 per month in additional cash flow!

What is amazing is that my team and I experience these kinds of victories every day.

It makes our work incredibly rewarding.

Every day we're making a difference in people's lives. We help them navigate the complicated federal student loan system to get a much better deal from all of the options available.

Here’s Why Clients Love Us...

"I will save over $140k on the life of the loan... that's phenomenal!"

- Dr. Andrea Blake, DC ⭐⭐⭐⭐⭐

"I use to pay around $1800 a month for my student loans. Now I pay $0 a month!"

– Dr. Andy Owen, DC, DO ⭐⭐⭐⭐⭐

"They have greatly decreased my student loan workload... my life has been greatly improved, we have extra money to live with."

- Dr. Brittany Potter, DDS ⭐⭐⭐⭐⭐

I hope you'll book your FREE Evaluation and let us serve you next. Our services are trusted by thousands of professionals just like yourself. And we're so confident we'll be able to save you money that we offer a 100% Money Back Guarantee.

So book your FREE Evaluation today.

To Your Freedom and Prosperity,

Zack Geist,

Founder at Student Loan Tutor

Remember: "If you're forced to play the game, it pays to know the rules!"

Are you ready to start saving money on your Federal Student Loans?