A Guide to Help You Repay Your Student Loans

Are you feeling overwhelmed by your student loan debt? You’re not alone. In fact, you’re part of a growing trend. The average graduate from the Class of 2020 has $28,950 in student loan debt, which is up 6% from the previous year. But don’t despair! There are a number of options available to help you repay your loans. In this blog post, we’ll explore some of those options, including direct loans, FFEL, Public Service Loan Forgiveness, and bankruptcy.

Direct Loans:

One option for repaying your student loans is to take out a Direct Consolidation Loan. This type of loan allows you to combine all of your eligible federal student loans into one loan with a single monthly payment. Direct Consolidation Loans also offer the opportunity to lower your monthly payment by extending your repayment term. However, keep in mind that this will likely result in you paying more interest over the life of the loan.

FFEL (Federal Family Education Loan):

If you have a Federal Family Education Loan (FFEL), you might be eligible to consolidate it into a Direct Consolidation Loan. FFELs were private loans that were guaranteed by the federal government. If you have an FFEL, consolidating it into a Direct Consolidation Loan can lower your monthly payment and give you access to certain repayment plans and forgiveness programs that aren’t available for FFELs.

Public Service Loan Forgiveness:

The Public Service Loan Forgiveness (PSLF) program forgives the remaining balance on your Direct Loans after you make 120 qualifying monthly payments while working full-time for a qualifying employer. To be eligible for PSLF, you must work for a government organization at any level (federal, state, local, or tribal), a not-for-profit organization that has been designated as tax-exempt by the IRS, or a private not-for-profit organization that provides certain public services.


You might be able to discharge all or part of your student loan debt through bankruptcy; however, it’s important to note that this is generally very difficult to do. Student loans are only discharged in bankruptcy if you can prove that repaying the debt would cause an undue hardship on you and your dependents.

Undue hardship is determined using a three-part test that looks at factors such as your current income and expenses, whether your financial situation is likely to improve in the future, and whether you’ve made good faith efforts to repay your loans.
It’s important to remember that filing for bankruptcy should always be seen as a last resort. If you’re considering filing for bankruptcy, we recommend talking to an attorney first to explore all of your options.


As you can see, there are a number of options available to help you repay your student loans. We encourage you to explore all of these options and talk to us before making any decisions. Remember, knowledge is power! The more information you have about your repayment options, the better equipped you’ll be to make a decision that’s right for you.  Call us at 828-412-8700 to schedule a student loan review.