Question 1

Should I pay off student loans or invest the extra money?

Accepted Answer

The math answer: if your student loan rate is lower than your expected investment return, investing wins mathematically. Federal student loan rates in 2026 run 6.53%–9.08%. The S&P 500 has averaged ~10%/year historically, or ~7% inflation-adjusted. If your rate is 6.53% and you have a long time horizon, investing has a slight mathematical edge. But this ignores risk and psychology — guaranteed 7% return (paying off debt) vs uncertain 10% return (investing). A hybrid approach: invest enough to get your full 401(k) employer match (guaranteed 50%–100% return), then aggressively pay loans.

Question 2

What is the SAVE plan and how is the payment calculated?

Accepted Answer

SAVE (Saving on a Valuable Education) replaced REPAYE in 2023 and is the most generous IDR plan for most borrowers. Monthly payment = 5% of discretionary income for undergraduate loans (10% for graduate-only, 5%–10% blended for mixed). Discretionary income = AGI minus 225% of the federal poverty guideline for your family size. Example: $55,000 income, single, no dependents: FPL = $15,650. 225% FPL = $35,213. Discretionary income = $19,787. SAVE payment = $19,787 × 5% ÷ 12 = $82/month. After 10 years (for undergrad balances under $12,000) or 20 years (most borrowers), remaining balance is forgiven.

Question 3

What is PSLF and do I qualify?

Accepted Answer

Public Service Loan Forgiveness forgives remaining federal loan balances after 120 qualifying payments (10 years) while working full-time for a qualifying employer: federal, state, local, or tribal government, or a 501(c)(3) nonprofit. Qualifying loans: Direct Loans only (FFEL and Perkins loans can be consolidated). Qualifying payments: any income-driven repayment plan. Submit an Employment Certification Form annually to track progress. PSLF was poorly administered until 2020 reforms — over 700,000 borrowers have now received forgiveness. If you might qualify, enroll in IDR immediately and submit certification paperwork.

Question 4

What happens to my student loans if I die or become permanently disabled?

Accepted Answer

Federal student loans are discharged (forgiven) upon death or Total and Permanent Disability (TPD). For death discharge, the servicer requires a death certificate. For TPD, you must apply through the TPD discharge program with documentation from VA, SSA, or a physician. Private student loans vary by lender — some discharge, some pursue the estate. If you have a cosigner on private loans, their liability may continue even after your death, which is why cosigner release is important.

Question 5

How do I qualify for the $10,000 student loan forgiveness?

Accepted Answer

The Supreme Court struck down the Biden administration's broad $10,000 forgiveness program in 2023. As of 2026, there is no universal forgiveness program. Available forgiveness options: PSLF (10 years in public service), IDR forgiveness (20–25 years on income-driven repayment), Teacher Loan Forgiveness ($17,500 after 5 years in low-income schools), and various career-specific forgiveness programs. The political situation remains dynamic — check studentaid.gov for current program status.

Plan	Payment Based On	Forgiveness	Best If
Standard 10-Year	Fixed (no income consideration)	None	Debt < 1× annual income
SAVE	5–10% discretionary income	10–25 years	Low income, large balance
IBR	10–15% discretionary income	20–25 years	Pre-2014 borrowers
PAYE	10% discretionary income	20 years	Post-Oct 2011 Direct Loans
PSLF + Any IDR	IDR payment	10 years	Government/nonprofit workers

Student Loan Payoff Calculator

What You Should Know

Charts & Projections

Tax Breakdown

State Comparison

Lifetime Wealth Projection

Overview

Federal Student Loan Repayment Plans: Which Is Right for You?

Plan Comparison at a Glance

The IDR Forgiveness Tax Question

Should You Refinance Federal Loans?

Frequently Asked Questions

Sources & Methodology

Mark