Can a Financial Advisor Help with Student Loans?

A recent graduate with significant student loan debt may feel like they are drowning in a sea of numbers. There is hope! Some financial advisors can help evaluate the situation and provide options that fit the borrower’s specific goals. Not all repayment plans are created equal; finding one that makes sense for the individual’s unique circumstances is essential. 

Advisors can also help borrowers calculate monthly payments and understand their eligibility for public service loan forgiveness. Taking the time to consult with a financial advisor can pay off in a big way – both financially and emotionally.

Very few financial advisors are qualified to advise you on student loans.

Student loan repayment is one of the most important financial decisions a person can make; however, finding an experienced and knowledgeable advisor to help with this decision can be challenging. Certified Student Loan Professionals have the specialized knowledge required to provide advice on various student loan repayment options and forgiveness programs. As a student loan planner, they understand the consequences, benefits, and opportunities associated with various strategies so they can advise borrowers toward achieving their financial goals. Unfortunately, Certified Student Loan Professionals are few and far between; however, it’s well worth seeking out qualified advisors to ensure you make a fully informed decision regarding your student loans.

A financial advisor can help you understand your student loan options and pick the best repayment plan.

Navigating student loan repayment can be daunting, but working with a financial advisor can make you feel in control. An experienced advisor will understand the student loan landscape and help you evaluate your federal loans, determine if an income-driven repayment plan that works for you, determine if you qualify for public service loan forgiveness, and make sure you make calculated monthly payments that best suit your budget. 

Paying student debt off doesn’t have to be a journey of blind confusion—a qualified financial advisor can equip you with the resources you need to make the best student loan repayment plan possible.

A financial advisor can also help you calculate your monthly payments and estimate how much you can afford to pay each month.

Working with a financial professional can be a powerful tool for minimizing student loan debt. Financial advisors can provide the expertise and guidance needed to get an accurate estimate of your monthly payments, helping you identify how much of your financial resources can be put towards paying off student loans. 

Furthermore, financial advisors can offer additional support to help you stay on top of your payment goals and overall financial well-being. By leveraging their deep understanding of financial regulations, they are sure to provide invaluable insight that will impact how financial decisions are made—and could potentially save you hundreds or thousands in monthly payments.

If you’re considering income-driven repayment plans or public service loan forgiveness, a financial advisor can help you evaluate your eligibility and ensure you’re on the right track.

Suppose you’re looking into income-driven repayment plans or pursuing public service loan forgiveness. In that case, a qualified financial advisor can provide the guidance necessary to help you understand your eligibility and ensure all of your goals are attainable. With your financial advisors’ expertise, you can evaluate your federal loans, calculate monthly payments, devise a budget for the future, and ultimately achieve the long-term debt freedom you deserve. Don’t push yourself too hard in this process — taking advantage of a knowledgeable financial planner is essential to finding success.

Should you refinance to private loans?

Evaluating the benefits of refinancing from federal to private student loans with great caution is essential, as this type of loan may not be the best option for many borrowers. It can be risky because privately refinanced loans lack certain protections commonly found in government-backed student loans. 

It’s not a good idea for those seeking public service loan forgiveness, as private lenders will not provide this benefit. It is wise to consult with a financial advisor who will help you analyze your financial situation in detail and discover the path that is right for you so that you can adequately make an informed decision before taking any significant steps.

Can I rely on my student loan servicers?

Student loan servicers offer a valuable service in helping student borrowers manage their loans. However, they aren’t trained to give comprehensive advice. It is best to think of student loan servicers as resources for free help and general information. 

If you are considering options around student debt, it is advised to look elsewhere for extensive assistance explicitly tailored to your financial situation. Seeking assistance from student loan servicers should be seen more in the context of how to access student loan information and make payments —not for advice on managing student debt overall.

What is the difference between consolidating student loans and refinancing into private student loans? 

When student loan borrowers consolidate their student loans, they combine all subsidized loans into one loan and all unsubsidized loans into another student loan. Consolidating your loans can also involve combining federal family education loans (FFEL) into Direct Student Loans. In each case, the loans remain as federal loans issued by the Federal government and regulated by the Department of Education. In the United States, student loan forgiveness programs are poorly understood unless you work with a qualified student loan advisor. Federal student aid should be 

On the other hand, private refinancing involves replacing federal loans with private loans obtained from private lenders instead. Refinancing is a process that moves the borrower’s loan portfolio away from the government-based system and towards private entities. Refinance terms are typically more expensive than consolidating but can benefit borrowers targeting lower interest rates or monthly payments when done correctly.

Should you privately refinance your debt?

Refinancing private student debt can be a difficult decision. Lower interest rates can be tempting, but private loans come with an important caveat — they cannot transfer back to federal loans and don’t provide the same protections as federal student loans. 

If you become permanently disabled or pass away, your family will not have the same option of loan forgiveness and could be stuck with the burden of your private loan debt. It may be wiser to keep your current loan status, where you benefit from government-backed protections. Consider these factors before making this irrevocable decision, not just the lower interest rate. 

How Can Dentists Repay Their Student Loans?

For dentists struggling to manage significant student loan debt, income-driven repayment plans may be the best option. Because these plans help borrowers when looking to purchase a home with a physician’s mortgage or start their own dental practice, it may be worth consulting with a Certified Student Loan Professional and experts to explore this option further. 

If your student loan balance exceeds 1.5-2 times your income, you should seriously consider forgiveness through income-driven repayment.

Looking for a financial planner for dentists? Check out our dental financial planning service: Financial Planning & Investing For Dentists – Arch Financial Planning

How Can Physicians Repay Their Student Loans?

Public service loan forgiveness can be an attractive option to consider for physicians in non-profit hospitals. The program requires 10 years of on-time student loan payments in income-driven repayment. Doing so can save physicians and make entering the medical field more financially stable. Private student loan refinancing is not recommended.

Looking for a financial planner for physicians? Check out our physician financial planning service: White Coats – Arch Financial Planning

Can tax professionals help with student loan planning?

Working with a tax professional can be a great asset in student loan planning. They may need to gain expertise on repayment plans directly, but they can help guide your financial advisor to evaluate whether you should file your tax return separately from your spouse. 

Some income-driven repayment plans allow you to exclude your spouse’s income when calculating your payment. You must file your taxes separately if you’re going to exclude your spouse’s income. This could prove detrimental, as it might cause your tax liability to increase, and certain deductions and tax credits will no longer be available. However, your student loan payment reduction could outweigh the increase in taxes due. 

Your financial advisor and tax professional work together to ensure the best outcome.

Can a CERTIFIED FINANCIAL PLANNER help with student loans?

Personal finance is a priority for many, including those burdened with student loan debt. If you need professional help managing your finances or general financial advice, then working with financial professionals that hold the  Certified Financial Planner ™ can provide counsel and insight.

It is imperative to find a certified financial planner who is also a Certified Student Loan Professional, as the CFP curriculum doesn’t prepare them to advise on student loans adequately. 

Can a credit counselor help with student loan debt? 

Credit counselors can be a valuable asset in providing debt relief from credit cards. Typically, credit counselors charge a flat rate for their services and have experience with budgeting and credit score optimization. While credit counselors are experts on certain types of debt, they may need to gain student loan expertise. For student loan holders who wish to explore all their repayment options, it is wise to consult an expert in the field, such as a loan advisor or professional debt consultant, to ensure your financial future is secure.

Bottom Line

Student loan debt can be daunting and overwhelming, but fortunately, options are available to help ease the burden. A financial advisor can help you understand your unique situation and make a plan to repay your loans that fits your budget. If you’re considering income-driven repayment plans or public service loan forgiveness, a financial advisor can evaluate your eligibility and make sure you’re on the right track. 

Ultimately, working with a student loan consultant at Arch Financial Planning can take the guesswork out of repaying your loans and give you peace of mind as you achieve your goals. Contact us today to get started.

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Author: Cecil Staton, CFP® CSLP®

Author: Cecil Staton, CFP® CSLP®

I'm a fee-only financial advisor for dentists serving clients nationwide.

I left the large financial institutions to start my own RIA. I did it so people could pay for real planning and not just an agenda to sell a hidden product. As a fiduciary, Arch Financial Planning, LLC was built on that promise by delivering non-cookie-cutter plans that provide solutions to achieve their goals.

Who do I serve?

Typical: Dental practice owners
Goals: Pay off student debt, start/sell a practice, and grow their wealth
Location: Virtually anywhere in the U.S.

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This website (the “Blog”) is published and provided for informational and entertainment purposes only.  The information in the Blog constitutes the Content Creator’s own opinions and it should not be regarded as a description of services provided by Arch Financial Planning, LLC or Cecil Staton, CFP® CSLP®.

The opinions expressed in the Blog are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.  It is only intended to provide education about personal financial planning.  The views reflected in the commentary are subject to change at any time without notice.

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