I usually have a strong dislike for talking about myself. This site is about providing you, the reader, with the best possible information. However, in this case, I think it is critical to review my work for the past year as it contained many predictions. You deserve to have a record of my hits and misses.

Let’s get to it.

Student Loan Forgiveness from Elizabeth Warren

Like most student loan borrowers, I was thrilled by the possibility that Elizabeth Warren might forgive some or all of my student loans.

My predictions were not optimistic.

In my analysis, I discussed the many hurdles that stood in the way of forgiveness and how delaying repayment could be an expensive mistake due to the accumulation of interest.

Verdict: Sound Prediction. I called forgiveness as a result of the 2020 election a long shot, and that prediction looks solid in hindsight.

The one area that could have been better was my analysis of the cost of waiting. At the time of the article, Covid-19 was unknown, and we were still many months away from the interest freeze. However, the 0% interest rate has reduced the cost of waiting and hoping for federal loan forgiveness.

Planning for a Bernie Sanders Presidency

At one point, Bernie Sanders was the favorite to win the Democratic nomination for President.

At the time, I thought it was important to discuss his plan to forgive all student loan debt.

I said, “the odds of student debt elimination are increasing, but it is still a long shot.” I also provided a list of steps for borrowers to follow if they thought Sanders would win and deliver on his loan forgiveness promise. The steps were to: sign federal loans up for the IDR plan with the lowest monthly payment, refinance high-interest private loans, and have a backup plan.

Verdict: Shaky Analysis. I ended the article by advising borrowers to “plan with your head, not your heart.” I should have done the same. While it was accurate analysis to call forgiveness a long shot, it was premature to discuss taking steps plan for forgiveness in a Sanders Presidency. The article published on February 25th, and four days later, Biden’s huge win in the South Carolina primary would shift the momentum of the election.

Additional Note: I removed the original article from the site. From a transparency standpoint, the best practice would be to leave the old article posted for review. However, I try to remove items that are no longer relevant so that borrowers do not make decisions based upon the content that is not up to date. Those interested can read the archived version of the original article on archive.org.

Federal Student Loan Interest Freeze Extensions

When Congress passed the first Covid-19 stimulus bill in March of 2020, they suspended federal student loan payments and interest until that October.

Early in that summer, I predicted that the interest freeze would extend beyond the original expiration date. I made this projection because the relief received bipartisan support, the President could extend it via executive order, and Covid-19 showed no signs of slowing.

I also noted that no politician would stand in the way of the interest freeze one month before a big election.

Verdict: Bullseye. Since that first article, the 0% interest and payment forbearance have been extended twice. It is now scheduled to end on January 31st, 2021. It also appears that it will be extended yet again during the Biden administration.

Tax Relief for Employer Contributions to Student Loan Payments

Many companies now support treating employer student loan assistance like 401(k) contributions.

I said that I thought, “it is highly likely that a tax break for student loan contributions becomes a reality. This could be the next significant change coming to student loans.”

Verdict: Mixed Results. The comprehensive program I expected has not yet become a reality. However, as part of the CARES Act, until the end of 2020, employers can contribute up to $5,250 toward an employee’s student loan balance, and the payment will be free from payroll and income tax.

A Biden Executive Order on Student Loan Cancellation

After Biden’s win in the 2020 election, many Democrats called on him to sign an executive order canceling up to $50,000 in federal student loans.

In my legal analysis, I said that Biden might have the authority to cancel the debt in this manner, but it wasn’t a sure thing. I argued that for practical and political reasons, Biden was unlikely to forgive the debt. Specifically, the potential for chaos and Biden’s desire to be unifier were reasons he wouldn’t push executive power in this manner.

I doubled down on this analysis during an interview with Forbes.

Verdict: Bullseye. Biden recently stated that he is unlikely to cancel student debt with an executive order. Of all my predictions, this was the one that worried me the most because it was not a commonly held point of view at the time. However, it was a topic of significant interest and could impact borrower planning.

The post Student Loan Sherpa 2020 Accountability Report appeared first on The Student Loan Sherpa.

This is especially true for student loan borrowers. We have had to deal with scammers, undertrained customer service reps, and politicians that don’t seem to care. These roadblocks make navigating student loan repayment an even bigger challenge.

Worst of all, there is no definitive source to answer all student loan questions. Sometimes borrowers just need to ask their servicer. Other times, the Department of Education is the best source of information. In some cases, the advice of a financial planner or even a lawyer may be the resource needed.

For borrowers, the key to navigating this terrain is to understand the strengths and weaknesses of each resource. The good news is that you don’t have to be an expert investigator. Instead, you just need to know where best to direct your questions.

When to get help from a student loan servicer

The flaws with student loan servicers are well documented at this point. To save a few bucks, call center representatives are often undertrained, and the servicers themselves have little accountability. A great example of the issues with student loan servicers is the Navient lawsuit brought by the Consumer Financial Protection Bureau. Borrowers relied upon information provided by Navient, and it turned out to be awful advice.

That being said, there are times where the student loan servicer is an essential resource for borrowers. If you need to know when your next payment is due and how much you owe, the loan servicer is a necessary point of contact. Servicers are also critical for getting information like loan payoff statements or investigating the status of a request.

Servicers are bad resources for determining student loan strategy. When a borrower calls a student loan servicer, the job of the customer service representative is to answer all questions as quickly as possible. The fasters calls are processed, the fewer people that the servicers have to pay to run call centers. This arrangement is not well suited for providing nuanced advice that accounts for things like future taxes or financial goals like buying a house.

Income-driven repayment (IDR) plan decisions are a good example of where servicers can help and where they might get in the way. When it comes to enrollment, submitting paperwork, and status updates, the servicer is an essential resource. However, the servicer is far more limited when it comes to helping borrowers decide whether or not an IDR plan is a good idea or which IDR plan is best.

Put simply; servicers are best for asking straightforward account questions. Servicers can fall short when strategy or complex rules enter the equation.

Getting the most from The Department of Education

To the credit of the Department of Education, the Student Aid website has improved considerably over the last decade and become an excellent resource for borrowers.

In the past, information was often scattered, and worse, incomplete. Today, the Department of Education website has far more comprehensive information and is much better organized. This website is the best source for definitive information on repayment plan options and terms. The Loan Simulator, formerly called the Repayment Estimator, is perhaps the best calculator available for comparing different federal repayment plans. Finally, the federal student loan database is the best resource for borrowers wishing to track down their federal loans.

Similar to loan servicers, where the Department of Education’s website falls short is in matters of strategy. Studentaid.gov does a nice job explaining the requirements of Public Service Loan Forgiveness. However, they can’t tell borrowers whether they are better off chasing forgiveness or aggressively paying off their student loans.

Can 3rd Party Websites and blogs be trusted?

Student loan websites and blogs like this one can be useful for connecting the dots. How does my federal repayment plan affect my ability to buy a house? Is it better to put extra money in my 401(k) or pay down my student loans?

The problem with unofficial resources is that the quality can vary greatly from one site to the next. At times, it can be difficult to distinguish a scam website from a reputable website.

One easy way to spot a scam website is if they try to charge you for free federal student loan resources. Any website that charges people for services like student loan forgiveness or income-based repayment should not be trusted.

Another issue is that many private lenders and service providers pay to advertise student loan websites. This can induce an otherwise well-intentioned website to encourage borrowers to make decisions that might not be in their best interests.

Borrowers trying to navigate a complex student loan issue should try to verify whatever information they can. When it comes to matters of strategy, the important step is to verify the underlying facts and assumptions provided. For example, if a website has an article about how to save for retirement while paying down student debt, you can verify retirement plan information with your employer, repayment plan rules with the Department of Education, and tax rules with the IRS.

Think of the unofficial websites as brainstorming. They might introduce a unique or creative idea that could be helpful to your particular situation. If the idea holds up to additional research, it might be worth doing. As borrowers do more research, the reputable sites will separate themselves, and the verification step may take less time.

Are paid professionals necessary to answer student loan questions?

Though it might seem overwhelming, most student loan issues are DIY. Unlike the federal tax code, which can be incredibly complex, most borrowers can get an understanding of all the rules that apply to them after a bit of research.

Paid professionals enter the equation when expertise is needed beyond a student loan question. An accountant may be needed to help you resolve questions about filing taxes jointly or separately. If you suspect fraud or want to sue your lender, it is probably time for an attorney to get involved.

Where not to go for advice

There are a couple of sources that can be dangerous to use.

Friends and Family – Friends and family are often well-intentioned when they offer student loan advice, but it can be horrible advice. The problem with seeking the advice of your loved ones is that their loan situation could have been much different from yours. You may have options that your friend doesn’t. You may also not qualify for programs that your friends do. Because this debt is so individualized, it is critical to understand your loans, and not base your decisions upon what somebody else did with their loans.

Social Media – Most people realize that not everything written on social media is true. However, this is only part of the problem. Most student loan questions cannot be answered in a single tweet or Facebook post. Complex questions often require detailed or complicated answers. Student loan decisions can have lasting financial consequences. As such, borrowers shouldn’t make important choices based upon unverified social media.

Verify before you trust

Millions of Americans struggle with student loans. As a result, countless resources are trying to help.

At this point, the vast majority of topics and questions have been covered by multiple experts. This should make it fairly easy to verify most student loan information.

Borrowers that take the time to double-check what they are told will be less likely to make mistakes, better equipped to avoid scams, and can move forward confidently with their decisions.

The post Where to go for Accurate, Objective Student Loan Information and Advice appeared first on The Student Loan Sherpa.

In the interest of transparency, a clear explanation of the rankings criteria is probably necessary.

While there is no set formula for determining the top lender, several factors enter into the equation…

The Factors that Influence Lender Rankings

Interest Rates – This is the obvious factor. If a student loan refinance company is advertising terrible interest rates, it will rank poorly. For most borrowers, improving interest rates is the driving force behind a refinance. As a result, the available interest rates are critical.

Approval Statistics – Having excellent interest rates is nice, but if the majority of the borrowers get rejected, a company will not rank well. The lenders that approve the widest cross-section of borrowers will rank well, even if they are not advertising the lowest possible rates. The approval numbers come from both reader and lender feedback.

Loan Terms – A student loan is more than just an interest rate. Some lenders have unforgiving terms, while others are far more reasonable. Companies that try to impose unfair or deceptive terms will be penalized in the rankings.

Lender Reputation – Some student loan companies have better reputations than others. Negative reader feedback could push a lender lower in the rankings. Additionally, if there are significant complaints about a company with the Consumer Financial Protection Bureau, the position in the rankings will drop.

Putting all of these factors together, the rankings boil down to one simple question: Which lender is most likely to provide a positive experience to the average Student Loan Sherpa site visitor?

The lenders at the top of the list are the lenders that we think will have the best outcomes for readers.

How Other Student Loan Sites Decide on Rankings

Any consumer researching student loan refinance companies should know that the refinance business is quite competitive. While this competition can be a positive when it drives down interest rates, there are also negative consequences.

Many student loan lenders pay websites like this one to promote their companies. As a result, many websites will rank lenders according to who pays the most. Additionally, many sites will only include the lenders that are willing to pay to be listed.

If a site doesn’t disclose how lenders are ranked, it should be a red flag to borrowers. If the rankings only include a few lenders, it should be a red flag.

How the Student Loan Sherpa Works to Earn Trust

This site was created in February 2013. It has been built for the long haul.

Making a quick dollar at the expense of providing helpful information, may generate more money in the short-term, but in the long run, it is bad for business.

Visitors to the site may notice that I prominently include my name and picture on the website. It isn’t because I’m somebody important. I put my name and face on the website because I stand behind all of the words printed on the site. I’ve worked very hard and very carefully to earn a positive reputation in the world of student loans, and I will not jeopardize it by trying to make a quick buck.

I try to review and rank all national lenders and provide readers my honest feedback. The goal is to empower all readers to be better-educated consumers and to help those same readers make smart decisions.

Adjustments to the Refinance Rankings

Companies will occasionally move up and down the rankings.

This happens as new information becomes available.

Sometimes lenders raise rates, so they get bumped down the rankings. Other times, lenders start approving borrowers more frequently, so they move up the rankings.

Lender underwriting terms and interest rates are always changing. As these changes happen, they are hopefully reflected in the rankings.

Rankings are typically updated at the beginning of each month.

The Current Rankings

At present, the top refinance lenders are the following:

Rank	Lender	Interest_Rates_	Loan_Amounts____
1		4.69%* – 9.99%	$5,000 – No Max
	Splash Financial Review: Splash has competitive rates, but they start slightly higher than the top lenders. Splash also offers unique 8 and 12 year repayment terms.		Application + Up to $500 Bonus
2		4.86% – 8.44%	$10,000 – No Max
	ELFI Review: ELFI routinely offers excellent interest rates. Even though ELFI is new, it is the product of a regional bank that has been in business for decades.		Application + $150 Bonus
3		4.49% – 9.99%	$5,000 – No Max
	SoFi Review: SoFi is the biggest name in student loan refinancing for a simple reason – their rates are reliably among the best on the market.		Application
4		3.95% – 9.74%^	$5,000 – No Max
	Earnest Review: The rates advertised by Earnest are among the best, but in head to head comparisons, Earnest often falls short in actual rates offered. Earnest scores points because it has by far the most flexibility on loan repayment length.		Application + $150 Bonus^
5		4.89% – 9.12%	$5,000 – $300,000
	LendKey Review: LendKey partners with local banks and credit unions to provide their loans. The end result is competitive rates provided by local reputable businesses.		Application + $150 Bonus
6		4.99% – 9.20%	$5,000 – No Max
	Laurel Road Review: Laurel Road currently has excellent approval rates combined with solid interest rates. Laurel Road also has a specialized program for medical professionals.		Application
7		5.89% – 12.34%	$10,000 – $500,000
	Citizen’s Bank Review: Citizen’s Bank is one of the few traditional banks left in the student loan refinance marketplace. Citizen’s may be an unremarkable option, but is still a solid choice and worth a comparison shop.		Application + $200 Bonus*
8		6.99% – 13.99%	$5,000 – $250,000
	College Ave Review: The interest rates offered by College Ave are excellent right now. However, College Ave hasn’t always had the best rates historically.		Application
9		6.00% – 10.12%	$7,500 – $200,000
	EDvestinU Review: EDvestinU scores points for transparency and low interest rates on 15 and 20 year loans, but we have a couple concerns.		Application + $200 Bonus*
10		5.99% – 11.49%	$5,000 – $150,000
	Discover Review: Discover’s lowest interest rates lag behind the top lenders, but for borrowers looking for 10 or 20 year loans, Discover is worth investigating.		Application
11		NA	$10,000 – $350,000
	Purefy Review: Purefy’s options are someone what limited as they do not offer a variable-rate loan and have a maximum repayment length of 15 years while most other lenders offer 20. Purefy seems to excel at medium length fixed-rate loans.		Application + $200 Bonus*
12		NA	$5,000 – $500,000
	Nelnet Bank Review: There isn’t anything exceptional about Nelnet Bank student loan refinancing, but rates are solid and worth considering.		Application
13		5.99% – 14.99%	$10,000 – $75,000
	PNC Review: PNC has the best rates of the National Banks offering student loan refinancing, but PNC doesn’t stack up to the student loan startups, regional banks, or credit unions.		Application
14		6.20% – 8.99%	$10,000 – No Max
	MEFA Review: MEFA doesn’t have the best rates on the market, but if you are specifically looking for a 15-year loan, MEFA is very competitive. For shorter or longer loans, it is best to look elsewhere.		Application + $200 Bonus*

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