student loans
5 questions
- Finance
Debt avalanche vs snowball: which method should I use?
The avalanche method (highest interest rate first) saves more money. The snowball method (smallest balance first) produces more early wins and higher completion rates. Both work — the right choice is the one you'll actually stick with.
- Finance
How do I get out of student loan debt?
For federal loans, income-driven repayment plans can cap payments at 5–10% of discretionary income and forgive remaining balances after 10–25 years. For private loans, refinancing at a lower rate and aggressively paying extra principal is the main path out.
- Finance
Should I consolidate my Parent PLUS loans before June 30, 2026?
Yes, if you may ever want income-driven repayment or PSLF for those loans. Under the July 2025 reconciliation law, a Direct Consolidation Loan that includes Parent PLUS loans must be disbursed by June 30, 2026 to retain access to income-driven repayment plans (ICR now, RAP after July 1, 2026). Consolidations completed after that date are limited to fixed-payment plans, which makes practical PSLF nearly impossible.
- Finance
What happens to the SAVE plan and what replaces it?
The SAVE plan was vacated by the 8th Circuit on March 10, 2026, and is being phased out entirely by July 1, 2028. About 7.5 million borrowers must select a new repayment plan within 90 days of receiving a servicer notice — those notices begin July 1, 2026. Two new plans launch the same day: the Repayment Assistance Plan (RAP) and the Tiered Standard Plan.
- Finance
What is good debt vs bad debt?
Good debt funds something that builds value — a home, education, a business. Bad debt funds things that depreciate or provide no lasting benefit, usually at high interest rates. The distinction matters, but interest rate and affordability matter more than the category label.