Six-figure student debt is paralysing. Breaking it into a payoff strategy is what turns 'forever' into a real date on the calendar.
Most people learn the formula once in school and never touch it again — until life forces them to. Six-figure student debt is paralysing. Breaking it into a payoff strategy is what turns 'forever' into a real date on the calendar.
Federal loans offer income-driven repayment, forgiveness pathways and forbearance. Private loans rarely do. Strategy must reflect this.
Refinancing federal to private locks in a lower rate but kills IDR, PSLF and forbearance options. Don't trade those away for a small APR cut.
Cap payments at 10–20% of discretionary income. Slower payoff, lifeline if income drops.
Cut everything else, throw raises and bonuses at principal, target highest-rate loan first.
Is loan forgiveness taxable? PSLF is not. IDR forgiveness historically has been, though rules change. Plan ahead.
Should I invest while in student debt? Always contribute enough to capture employer match. Beyond that, depends on rate spread.
If you only remember one thing from this post, make it that the inputs matter more than the calculator.