Debt Management & Strategy

Managing Existing Loans & Refinancing Options

Comprehensive guidance for organizing federal student debt, evaluating income-driven repayment plans, and deciding when to consolidate or refinance.

Understanding Income-Driven Repayment (IDR)

Federal IDR plans cap monthly payments based on discretionary income and family size. Under the One Big Beautiful Bill Act, new loans made post-July 1, 2026 use the Repayment Assistance Plan (RAP) with forgiveness after 30 years of qualifying payments. Legacy borrowers transitioning from closing plans can enroll in IBR or RAP.

Direct Consolidation vs. Private Refinancing

Federal Direct Consolidation combines multiple federal student loans into a single direct loan with a weighted-average interest rate, preserving federal benefits. Private refinancing replaces federal or private loans with a new private loan, which may lower your interest rate but removes federal borrower safety nets.