


I’ve Turned Off My Ad Blocker
Edit Story

3 Dumb Student Loan Myths That Can Bankrupt Smart Borrowers

Robert Farrington

Are you drowning in student loan debt?  Are you frustrated with the fact that you're struggling to pay it off?  Then you're like millions of Americans buried in student loan debt.

The fact is, there is over $1 trillion dollars in outstanding student loan debt in the U.S., and for borrowers who recently graduated only to find a tough job market and little help, the burden of student loan debt can be daunting. It doesn't help that there are so many myths surrounding student loan debt programs and repayment options.

So, before you fall for one of these myths, make sure you educate yourself.

Myth #1: You Always Have To Pay Back Your Student Loan Debt

You hear every pundit telling you, "You always have to pay back your student loan debt.  It's an IOU on your future earnings, and the government will garnish your wages to get paid back." In some sense, this is correct - you're borrowing against yourself, and you do need to pay it back.

However, it omits a key factor that most student loan borrowers don't take advantage of: Student Loan Forgiveness Programs. These are programs designed to eliminate your student loan debt - for free. And it's been estimated that roughly 50% of borrowers can qualify for some type of student loan forgiveness program. You just have to look. The most common student loan forgiveness programs are students who pursue the following careers:

  • The Military
  • Teachers
  • Volunteer Work
  • Medical Workers

If you're considering entering these fields, see what programs you could qualify for. Even partial student loan forgiveness is free money.

Myth #2: The Government Isn't Flexible With Student Loan Payments

So, your six months of deferment are up on your student loan, and you get your first bill. You look at it and think, "How am I ever going to repay this?" But you don't realize there are other options available.

When lenders send out their first billing statements, borrowers are always put on the Standard Repayment Plan. This is a simple 10-year repayment plan that has flat monthly payments. However, that may not work for you - but you're not trapped.

There are many different ways that you can repay you loan, and there is always one that will fit your budget. In fact, with certain types of student loans, you can even get student loan forgiveness under certain repayment plans if you simply can't afford it.

So, don't simply settle for the Standard Repayment Plan if you can't afford it. Contact your lender and see what other options are available to you based on the loan type you have.

Myth #3: You Have To Pay Someone To Get Help Repaying Your Student Loans

Finally, the myth that frustrates me the most is where an advisor or company wants you to pay them a fee to help you with your student loan debt. Under no circumstances can you fall for this myth.

When it comes to student loan debt, everything is standardized, and there isn't much a student loan consolidation company will do for you, other than help you get the paperwork you could simply get yourself. These companies charge fees for essentially making phone calls on your behalf. If you're already struggling with debt, don't pay more to get out of it. Instead, look for free resources that you can use to help you:

  1. Call you student loan servicer and ask them what your options are. Have them send you any paperwork required.
  2. Leverage free online resources like, The Definitive Guide to Student Loan Debt, or

Before you pay anything, be sure that you understand specifically what they will and will not do for you. Many companies sell you on "the attempt to negotiate on your behalf." Don't pay for attempts, you can make those yourself.

Robert Farrington is the founder of The College Investor, an online resource dedicated to helping millennials get out of student loan debt and start investing for their future.  Follow him on Twitter or become a fan on Facebook.

