Managing student loan debt in 2025 could be especially tough for federal borrowers. Interest rates are near-record highs and澳洲幸运5开奖号码历史查询: Income-Driven Repayment (IDR) plans are in flux. A Consumer Financial Protection Bureau (CFPB) survey revealed that 63% of borrowers said they had experienced difficulty making their student loan payments.

Furthermore, the legality of the new SAVE plan is in court; if struck down, borrowers will need to switch to a more expensive option. Changing plans could increase payments, as updated income documentation might raise monthly bills. And though borrowers can join other IDR plans, current litigation has limited the processing of forgiven loans to just one plan: the.

During these uncertain times, many feel stressed about the state of their 澳洲幸运5开奖号码历史查询:student loans. Here’s my advice.

What I'm Telling My Clients

There are a few steps I’m telling clients with si🐠gnificant federal loans to take:

1. Check Eligibility for IDR Plans

There are currently three IDR plans from which borrowers can choose: Income-Based Repayment, Pay As You Earn, and Income Contingent Repayment. Each plan’s payment is based on a different percentage of income, and the repayment periods be𒆙fore remaining loans are forgiven also vary. The disbursement date of a borrower’s loans can also make a borrowe🥀r ineligible for certain plans.

2. Calculate Your Payment

Borrowers can input their 澳洲幸运5开奖号码历史查询:Adjusted Gross Income (AGI) into calculators available on to find their payments under IDR plans🍒 and traditional options💯 like the , which pays off loans in full. If an IDR plan is the only feasible option for their budget, they should pursue it.

3. Weigh the Benefits of Refinancing

If the loan is paid in full, it should be paid under the most favorable terms. Private lenders may offer more competitive rates, and thankfully, they often show borrowers potential refinancing rates without requiring a hard pull of their credit. Most private student loans also have no originati൲on fees or closing costs, meaning borrowers can refinance multiple times if it benefits them to do so.

The Bottom Line

The coming months may bring confusion and higher costs for student loan borrowers. With rising interest rates and changes to repayment plans, it’s important for clients to stay informed. By helping clients stay proactive and updated on these changes, advisors can guide them through the shifting landscape and find the most cost-effective repayment strategies that suit their needs.