• Kale


A step-by-step guide to stop getting f*cked on your student loans.

First off, you are getting absolutely fucked on your student loans.

You likely took them out when you were 17 or 18 years old when your dreams were big and your savings were small.

If you aren't aware of your current rate, shame on you, go look that shit up.

Over the past 20 years, student loan fixed rates are the following (Direct Federal subsidized & Parent PLUS) :

I cannot overemphasize the keyword FIXED.

As savings accounts, bonds, and certificates of deposit rates have all dropped across the board to barely 1% in 2020, every single borrower who took out loans during the past 2 decades is being completely fucked.

No other way to put it (ok, maybe a more polite way).

On top of that, new undergraduates are getting the same loans for:

As you can see, way less.

Same education.

So what can you do about it?

If you are not aware, bankruptcy/default is not an option.

You also cannot simply switch your loans to a lower rate with the Federal government.

You could review other payment plan options (income-driven for example) but be warned that this doesn't save you any money and more often than not COSTS YOU MORE MONEY.

You could (and should) look into if you are eligible for loan forgiveness.

To note, only Federal loans (loans taken out from the government) are eligible for forgiveness. If you took out these loans from a private lender you are shit out of luck.

If you have never done so - here is an amazing list of forgiveness opportunities to check out (YOU MIGHT BE ELIGIBLE!).

You could refinance your student loans with a private lender.

So if you're paying the rates above (which you are), this can save you THOUSANDS EVERY SINGLE YEAR. For emphasis, if you are paying the 8.5% rate and have $100k in debt, that's going from paying $8,500 in each in interest to $3,000!

Here's the negative of doing this - you lose all federal protections.

- That means you lose out on a large number of forgiveness opportunities.

- That means you lose out on all federal protections ( forbearance/0% interest during COVID)

These are 2 huge advantages to keep.

You could partially refinance with peer to peer student loan marketplace.

This type of loan is great.

Essentially it's the same thing as private refinancing MINUS the loss of all of the federal protections listed above.

Typically these loans are cash-secured - so you have to have savings to assign (as collateral) in these transactions such as money you've accumulated for an emergency fund or wedding/home purchase in 2-3 years.

Rates on these loans range can go as low as 1.5%!


Plenty of solid options exist.

No one is going to do this for you. Seize the day friend.

1 view0 comments

Contact us


Froogal Inc. via the online web platform Froogal.us (“Froogal”) offers a software-based wealth management engine that delivers automated financial tools to help users achieve better outcomes.

By using this website, you understand the information being presented is provided for informational purposes only and agree to our Terms of Use and Privacy Policy. ​

Neither Froogal Inc. nor its affiliates are a bank.  Froogal is not directly affiliated with First Internet Bank.

IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT — To help the government fight the funding of terrorism and money laundering activities, federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. What this means for you: When you open an account, we will ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents.

Customers can only open accounts via online web portal or App.  All funds incoming transfers must be from federally regulated banks & credit unions that are subject to the same BSA/AML compliance laws.

© 2021 Froogal Inc. All rights reserved.