Yes, You Can Buy a Home, Start a Family AND Pay Off Your Student Loans
From loan forgiveness, to expedited payments and income-adjusted payments, there are strategies available to get a grip on overwhelming student debt.

About 10 years ago I met with a client — she was a teacher and a single mom hoping to put her kids through college. At 56, she was almost past the average retirement age for teachers in her state, yet it was clear she wasn’t going to be retiring anytime soon — not only because of the tuition bills she’d soon have to pay, but because she still had $180,000 in student loan debt of her own to manage, after paying for her bachelor’s degree, master’s degree and administrative certifications she needed to advance her teaching career.
Along with a high amount of borrowing, this teacher did something fairly common — shift to an extended repayment plan, which makes monthly payments lower in the short term, but ultimately extends the life of loan and the total interest owed and causes the total loan balance to grow.
While she ultimately met her goals, her challenge is all too common — managing high levels of student loan debt are impacting more and more people. For instance:

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
- Over the last 30 years, college tuition costs have grown nearly eight times faster than wages, according to the National Center for Education Statistics, and outstanding student loans now totaled nearly $1.5 trillion in Q1 2019, according to the New York Federal Reserve.
- Recent graduates are starting their careers already in debt, with members of the class of 2017 owing an average of nearly $30,000, according to The Institute for College and Success.
- Many of our clients in the education and health care fields who are required to earn advanced degrees see us with student loan debt of around $70,000 for doctors, according to debt.org, and more than $50,000 for educators, according to the New America Policy Program. However, it could be much more than that. Over three-quarters of 2016 medical school grads have an average of $189,000 in loan debt, according to the Association of American Medical Colleges.
In my financial services practice, I primarily work with K-12 teachers and nonprofit employees. When I visit schools to meet with teachers and help them with retirement savings and financial planning, many say, “I can’t afford to save anything.” They’re worried about managing their student loans today more than they’re worried about how they’ll manage in retirement tomorrow.
Fortunately, no matter how much debt you’re carrying, there are several ways to reduce the amount you owe, make the payments more manageable, and meet your other financial goals. Here are a few strategies to consider:
Loan forgiveness:
A portion of your loans can be forgiven through programs such as Public Service Loan Forgiveness (PSLF). To qualify, you must work full-time for a nonprofit 501(c)(3) organization, the military, public school, non-profit hospital or the government. However, many people either don’t know about the program, or how to optimize their loans and payments to qualify. Understanding the program, ensuring you are in the right payment plan and all the various paperwork is filled out correctly is immensely important to successfully accessing the program, as currently only about 1% of applicants are granted forgiveness, according to the U.S. Department of Education. For example, 120 on-time payments are necessary, and only specific types of loans qualify for forgiveness.
In addition to the PSLF program, there is also a Teacher Loan Forgiveness program. Take the time to see what you may qualify for and consider seeking expert help to make sure you enroll correctly. It’s like working with an accountant to file your taxes – an expert can help you navigate the process more smoothly.
Expedited payment schedules:
Many borrowers in the U.S. are taking extended payment plans, stretching out their loan repayment schedules to 20 or even 30 years — and adding all those years of extra interest to their overall debt burden. Instead, look to see if you can afford to move to a 10-year repayment schedule. This will reduce the total amount you have pay over the life of the loan. In our practice, the average loan balance of a teacher with a master’s degree is typically about $70,000. On a 10-year standard repayment plan, that translates to nearly $800 per month.
Think twice about deferment or forbearance:
Deferment or forbearance allows you to temporarily stop or delay making loan payments. However, interest continues to accrue even though you aren’t required to make payments. Doctors and other health care professionals, who tend to use this strategy, given their high student loan debt and relatively low salaries early in their careers, may want to consider an income-adjusted repayment plan instead that can later qualify for loan forgiveness.
One of my clients reduced her monthly payments this way, and she was able to apply the difference toward retirement savings and other expenses. When her salary went up her loan payments also went up, but she was already well on her way to paying down her debt. Plus, her early retirement savings can benefit from years of tax-free growth potential.
Have a comprehensive financial plan:
If you’re carrying a large amount of student loan debt, it’s difficult to think about anything else. However, making a financial plan that includes a strategy for paying down that debt, while allocating toward other goals, such as retirement, will help you make smart decisions. Understanding your complete financial picture — and knowing all your options — is the first step to meeting your financial objectives.
By looking at these options, you’ll be much better positioned to repay your loans, meet other goals, improve your financial health overall, and prepare for a comfortable retirement.
Randal J. Lupi is a registered representative who offers securities through AXA Advisors, LLC (NY, NY 212-314-4600), member FINRA, SIPC, an investment advisor representative who offers investment advisory products/services through AXA Advisors, LLC, an SEC-registered investment adviser, and an agent who offers annuity and insurance products through AXA Network, LLC. Mr. Lupi may not be duly registered and licensed to transact business in your state. This article is provided for general informational purposes. AXA Advisors and its associates and affiliates do not offer student loan forgiveness, legal, tax or accounting advice or services. You should consult with professionals qualified in these areas. AGE- 2783412 (10/19)(exp.10/20)
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Randal "Randy" Lupi is a regional vice president and retirement planning specialist with Equitable Advisors. He works with clients to create customized plans for retirement planning, investing and managing student debt. His dedication to clients earned him the 2019 Elite Advisor recognition from the National Tax-Deferred Savings Association (NTSA).
-
Cord Cutting Could Help You Save Over $10,000 in 10 Years
How cutting the cord can save you money and how those savings can grow over time.
-
The '8-Year Rule of Social Security' — A Retirement Rule
The '8-Year Rule of Social Security' holds that it's best to be like Ike — Eisenhower, that is. The five-star General knew a thing or two about good timing.
-
Your Home + Your IRA = Your Long-Term Care Solution
If you're worried that long-term care costs will drain your retirement savings, consider a personalized retirement plan that could solve your problem.
-
These Are the Key Tariff Issues to Watch in Coming Months
While they're not dominating headlines right now, tariffs are not over. Some key dates are coming up fast that could upend markets all over again.
-
Bill Bought a Fridge, and Then His Nightmare Began
A Lowe's customer reached out to me after he encountered the retailer's 48-hour return window for major appliances when his brand-new fridge turned out to be defective.
-
Savvy Marketing Tips for Financial Pros From a Financial Pro
These strategies for marketing, client acquisition and retention can help financial professionals elevate their business and production.
-
Divorce and Your Home: An Expert's Guide to Avoiding a Tax Bomb
Your home is probably your biggest asset, so if you're getting a divorce, the stakes are high. Keep it? Sell it? You need to have a good plan in place for how to handle it.
-
This Is How a Lot of Law School Students Are Cheating
Growing numbers of students are falsely claiming a learning disability to score more time to take tests. This has real-world consequences in which fellow students, law firms and their clients pay the price.
-
Is Your Home Disaster-Ready? An Insurance Expert's Guide to Preparing for Storms and Fires
Homeowners can take these steps to protect their properties from hurricanes, tornadoes, wildfires and hail, while also potentially reducing their insurance costs.
-
A Financial Adviser's Defense of Annuities: They're Just Misunderstood
Annuities can offer retirement income stability and security against market volatility, though some do have drawbacks. The key is to understand their features before buying.