Student loan debt can feel overwhelming. In addition to the financial burden, there is also a lot of stress and anxiety that comes with it.
Student loan advisors can help with various tasks, including understanding student loans, consolidating student loans, and getting on the right repayment plan.
Here’s a look at what student loan advisors do and why you might need one!
What is a student loan advisor?
A certified student loan advisor is a professional who helps student loan borrowers manage their debt.
They can guide a wide range of topics, including student loan consolidation, repayment plans, and budgeting.
Student loan advisors can be beneficial in navigating the complex world of student loans. They can help you understand your options and make the best decisions for your financial future.
What to look for with a student loan advisor
A Certified Student Loan Professional must have two years of industry experience in:
- A Master’s degree in business or finance from an accredited institution, AND a Bachelor’s degree in business or finance from an accredited college or university
- Have a license and registration in the regulated financial services sector (brokerage, investment adviser services, insurance). This excludes persons in the financial planning field from receiving this designation.
How does a student loan advisor become certified
In addition to previous experience in finance, student loan advisors must pass an exam from the CSLP® Program.
The CSLP program is the most professional training program and the only specialty credential for financial experts focused on student-loan advice.
The CSLP stands for Certified Student Loan Professional. Working with a CSLP might offer a layer of security since the advice you get is based on considerable expertise in student loan consulting and personal finance.
Standards of a certified Student Loan Professional:
- Require recent and trusted records
- Conflicts of interest should be avoided.
- Assist clients in making well-informed decisions.
- Offer your client with any assistance he or she may require.
- When a subject is beyond your knowledge, have a professional reference.
- Be up-front about the extent of your service.
- Keep all regulations and laws.
- Avoiding conflict of interest: monetary or other advantages
- Keep client records safe.
- Take some time to conduct thorough research about refinancing.
- Questions should be answered within a reasonable time frame.
How do advisors help students with student loans?
As we previously stated, a certified Student Loan Advisor will have comprehensive training in student loan debt and how to manage payments with your unique financial situation and objectives in mind.
Student loan advisors can provide guidance and assistance to student loan borrowers in a variety of ways, including the following:
Understand Student Loan Repayment Options
There are different methods for paying off your loan: REPAYE, PAYE, IBR, and ICR, each with its own set of intricacies that must be considered.
Student loan advisors can help understand the differences between these plans and which one may be best for your situation.
Help With Loan Forgiveness
After paying on an income-driven repayment plan for the maximum repayment term (20 or 25 years), you may be eligible for loan forgiveness options like Public Service Loan Forgiveness (PSLF) or taxable loan forgiveness.
The borrower’s comprehensive grasp of these programs is crucial in determining how successful they can achieve this forgiveness.
Tax Planning and Repayment Strategy
Whether you’re married or filing jointly, your marital and tax filing status affects income-driven payment estimations, making tax preparation a topic of discussion while also determining how you’ll repay your student loans.
Student loan debt is a headache. Borrowers are frequently advised to call their Servicers for assistance, but this might be harmful rather than helpful at times.
School advisors Can’t help.
Do school advisors help students with a student loan? A school’s financial aid office is responsible for assisting you and your family in obtaining information about paying for your education at that institution.
This assistance typically includes information about both government and private student loans.
The financial aid office isn’t in charge, and it lacks the knowledge to help you figure out how to pay back your student loans.
Why you might need a Certified Student Loan Professional
Student loan servicers have a poor track record of customer service and satisfaction.
Federal contractors manage student loans, also known as student loan servicers.
There is a proven pattern of Loan Servicers failing to act in the best interests of their clients and giving wrong information. The following are examples of these accusations:
- Failing to make effective use of or allocate borrower student loan payments to their accounts
- Steering borrowers who have difficulties making their payments toward multiple forbearances rather than income-driven repayment options.
- Incorrectly reporting loans to the credit bureaus.
- Inaccurate information is given to borrowers regarding income-driven repayment alternatives.
- Failure to notify borrowers of IDR plan renewal deadlines and mishandling requests for income-driven repayment plans.
- When borrowers in public service professions tried to access the Public Service Loan Forgiveness Program, they were misled.
- Payments made incorrectly were included in the PSLF statistics.
- There was incorrect information about qualifying and maintaining eligibility for PSLF in general.
- Private Student Loan Servicer negligence in responding to bankruptcy proceedings
At the end of the day, student loan servicers are private corporations that handle payments on behalf of the government. They aren’t working for you.
Certified Student Loan Professional Help You Avoid Student Loan Forgiveness Scams
Borrowers who are unable to access the financial aid offices that provide them with loans, and who receive little or no assistance from inept or unreliable Loan Servicers, may be susceptible to student loan scams.
If you get a voicemail from someone claiming that your student debt has been disqualified from a new forgiveness program and to call them back right away to “secure your place!” that is a scam.
Unfortunately, borrowers (as well as non-borrowers) are being bombarded with phone calls, emails, letters, and texts from debt relief companies offering them assistance or informing them that student loan forgiveness programs will soon come to an end.
Numerous “student debt relief businesses” emerge every year with little oversight. They’re frequently touting benefits that appear to be too good to be true.
Financial Advisor Can’t Assist With Student Loan debt
Can a financial advisor assist with student loan debt? A financial planner may be your next option for student loan forgiveness assistance, but the harsh reality is that financial advisors are just as uninformed about the intricacies of the student loan system.
A financial advisor’s education is not enough is simply two pages long, coming from six textbooks.
Financial advisors can have a misalignment of incentives when it comes to student loans depending on how they’re compensated. The only way to align their interests with yours is to charge a flat fee for their services.
Finding a Certified Student Loan Professional (Advisor)
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