Student Loan Repayment Varies for Three Former Classmates

Why it matters locally: One of the individuals featured in the story, Libby, is a therapist in private practice in New York City who is navigating significant federal student loan debt and is considering the Public Service Loan Forgiveness program, which could impact many New Yorkers in similar professional fields.

Three individuals, Lizzy, Charlotte, and Libby, who attended college concurrently, now navigate distinct financial realities regarding their student loan debt. Lizzy, a 30-year-old nurse in Charlotte, North Carolina, successfully eliminated her student loan debt in 2021. She graduated with approximately $25,000 in federal student loans and received additional support from her parents for a portion of her tuition. Lizzy consolidated her loans and secured a lower interest rate through refinancing. She made additional payments beyond the minimum requirement, particularly during the federal student loan payment pause. Lizzy estimates she saved between $10,000 and $15,000 in interest by paying off her loans early. Charlotte, 30, works as a social worker in Portland, Oregon. She graduated with around $30,000 in federal student loans. Charlotte made consistent payments on her loans, even during the payment pause, contributing about $150 per month. This strategy allowed her to reduce her principal balance. She plans to continue making payments and anticipates paying off her loans in about five years. Libby, 30, works as a therapist in private practice in New York City. She graduated with approximately $100,000 in federal student loan debt. Libby currently participates in an income-driven repayment plan, which sets her monthly payment at $0. This payment structure results in her loan balance increasing due to accruing interest. She expresses concern about the potential tax implications of loan forgiveness under the Public Service Loan Forgiveness program, which she may pursue.