October 12, 2023

Are you Overpaying Your Student Loans?


Miscalculating student loan payments could be costing borrowers millions of dollars. It’s a frustrating and confusing experience that is putting borrowers in a troubling position as they try to navigate the maze of loan servicers and payment plans.

Hundreds of thousands of borrowers are being asked to make inaccurate payments, a challenge that hits the most vulnerable borrowers hard, including those enrolled in one of the four Income-Driven Repayment Plans.

So far The Education Department estimates that 420,000 borrowers have been affected by miscalculations, though the actual numbers could potentially run into the millions. These are borrowers who had their monthly student loan payments set at an amount that is intended to be affordable based on their income and family size. Yet, administrative errors are being blamed for driving up these borrowers' payments, some at an unsustainable amount of hundreds of dollars per month higher.

Loan servicers are pointing to a series of errors behind the problem. They’ve blamed the issues on the transition from older, income-driven plans to the Administration's new SAVE Plan. As servicers began switching people over, some loan servicers were basing the payment on the old repayment calculation that uses the 150% poverty level line instead of the updated 225% guideline for the new SAVE plan.

Borrowers in other income-driven plans have also received incorrect monthly payment information due to reports of bad or missing information. The result: mass confusion and more financial stress for borrowers.

At Chipper, we recognize the challenges borrowers face in finding accurate payment information about their loans. We are committed to ensuring our users are enrolled in the appropriate plans with accurate payments. Chipper has several safeguards in place to protect our members if their servicer makes any miscalculation. 

First, if our users are put into the wrong payment plan or asked to pay the wrong amount, we will proactively contact the loan servicer on their behalf to get the situation resolved quickly and effectively.

Second, we’ve built several calculators to help borrowers find out how much they are required to pay, how they could potentially lower their payments, and how much they could have forgiven on their student loans. Transparency is of the utmost importance to us and enables our users to budget, plan and explore the best repayment option for them.

Third, our app uses advanced technology to seamlessly connect student loans and automate enrollments into lower payment plans. That saves borrowers time and money, and gives them a clearer path to financial freedom.

Don’t overpay your student loans or get stuck with no options. We are here to help. Four out of five (82%) Chipper users find a better repayment plan through our app, and we hope you are one of them.

Use Chipper for Lower Payments

Chipper can help you find a student loan repayment plan that actually fits into your budget. You simply fill out your information and link your student loan account for us to generate your options in seconds. We help the average student loan borrower save over $300 a month off their student loan monthly payment. Lowering your monthly payment plan can game changing for your personal finance and can be done in minutes! Sign up for Chipper today to get on track with your student loans.

Use Chipper for The Best Path to Forgiveness

Finding your path to student loan forgiveness is easier than ever before. Chipper helps members find better Income-Driven Repayment (IDR) plans every day. Once enrolled in an eligible repayment plan, we can help you explore your forgiveness options and understand your path towards forgiveness. Sign up with Chipper today and get on track with your student loans.

Use Chipper for Round-Ups

Paying off your student loans doesn’t have to be a long and painful journey. Round-Ups are a way to directly pay off your loans with your everyday spending! By tracking your linked spending account(s), we will calculate the rounded up amount from each transaction in a week (IE spending $4.28 would add $0.72 to the weekly amount). We then initiate a payment towards your student loan for the weekly amount. Get chipping away on your student loans with Chipper today.

Use Chipper for Public Service Loan Forgiveness (PSLF)

The Public Service Loan Forgiveness (PSLF) program was created to provide relief to borrowers aiding the public sector. Unfortunately, 30% of applicants are denied due to incorrect paperwork. We can help! Chipper was created to solve this issue by assisting borrowers in understanding their options as well as allowing forgiveness eligible users enroll into the best forgiveness program available. Sign up for Chipper today to see your student loan forgiveness options and get the forgiveness you deserve.

Use Chipper for Teacher Loan Forgiveness (TLF)

The Teacher Loan Forgiveness (TLF) program was created to enable teachers working in Title 1 schools to receive student loan forgiveness of up to $17,500 (depending on their teaching subject). Chipper has helped teachers from all over the country qualify for TLF program and can help you get the forgiveness you deserve today. Find out if you qualify for forgiveness in minutes with our employer search tool.

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