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Student Loan Planning

Student loan planning is highly specialized business, but also one of the most neglected parts of financial planning. The U.S. Department of Education has created an incredibly complex system full of incentives and distorted priorities, but with that also comes opportunity and flexibility for the discerning borrower through Income Driven Repayment plans. The problem is, with so many different factors at play, and so many decisions to make, how is a recent college graduate supposed to figure it all out right out the gate?

Client Centered
  • If pursuing a payment plan with a loan forgiveness feature, do you understand and have a plan to deal with the tax consequences?
  • What will happen to your payment if you get married? What will happen to your tax liability if you try to keep your income separate?
  • Want a big family? Will your income be increasing in the future? How will this impact your choice of payment plan? 
  • Own a business, or plan to own one in the future? There may be all kinds of opportunities to reduce your student loan payments as a business owner. 
  • Should you consolidate your loans? Refinance?
  • What if the best route to take is having no income driven repayment plan at all and attack the debt with a 10-year standard repayment.

These are just some examples of factors involving student loan planning—and it only gets deeper when you look at the long-term effects of each payment plan. The vast majority of students who get out of college with high debt loads will try to do some research on their own, but ultimately will rely on advice from their loan servicer to select the best plan—something that is highly dependent on the borrower’s future goals Your loan servicer will usually just figure out which plan gives you the lowest payment today. They are not trained or capable of considering how student loan decisions impact the borrower’s future goals. There are short term, medium term, and long term implications, and all need to be considered.

Many recent graduates want to eliminate the burden of student loan debt, but also save for a home, travel the world, get married, start a business, begin investing for retirement, etc. But how do you work towards accomplishing all these goals simultaneously? While $250,000 in student loan debt is a lot of money to pay back, it isn’t practical to wait until you’ve paid down the entire debt before you start living. Life just doesn't work that way!

Who can benefit from student loan advice?

  • Recent grads with high debt loads choosing a repayment option
  • Parents who want to know more about the money their kids are borrowing or planning to borrow to pay for college
  • Anyone with high debt loads who is unsure if they are in the best program for them
  • Anyone who is finding the student loan debt is keeping them from achieving their life goals

Our first priority is helping you take care of yourself and your family. We want to learn more about your personal situation, identify your dreams and goals, and understand your tolerance for risk. Long-term relationships that encourage open and honest communication have been the cornerstone of my foundation of success.