Getting a Financial Adviser for Your Student Loans

One the biggest investments in our lives is getting a college degree. We know that graduating can provide us a lot more opportunities to have a higher quality of life. Before attending school, I planned how I was going to fund my four years of education. Next year, I will be a senior, so I have figured out the proper way to start paying off my loans after graduating. Lisa Skinner and Alessandra Malito wrote on their article Financial advisers help clients graduate from student debt for InvestmentNews explain how a financial adviser can guide every specific case to pay off student loans.

Meeting up with a financial adviser

Student loans are a specific topic, very different from a stock investment or an insurance purchase. It is ideal to meet up with a professional who is knowledgeable in this type of economic planning. Each student has a particular situation and unique needs. For example, I have used different sources such as federal options and merit-based opportunities. Skinner and Malito even point out how many people don't manage their loans correctly, as it may affect their way of living in the near future. We can see in figure 1.0 how some students may take more than twenty years to pay off their debt.

   Figure 1.0 - Figure showing millennials' college debt.

Source: https://www.cnbc.com/2017/01/25/women-carry-bigger-burden-of-student-loan-debt-than-men.html

Questions to ask your adviser

Most financial institutions offer the services of a financial adviser by appointment only, so you can have the time to talk about your specific case. I usually meet with my adviser twice a year. I recommend to have the right paperwork, information about all of the loans and awards throughout your career, and bring questions with the concerns you would to inquire about. While everyone has different needs, there are some standard questions we must investigate:

When should I start repaying my loan and which one should I pay first?

Every loan has a different payment option. Most of them have a six-month period of grace where you get a chance to start your life after college and find an appropriate job in your field. Skinner and Malito say that a financial adviser can guide you checking dates or even requesting an extension until you start generating an income.

How can I finance a Master's degree?

Communicate with your financial adviser what your plans are now that you have a college degree and your desire to attend graduate school. Depending on your preference, graduate schools offer different loans regardless of what you already owe on your undergraduate degree. Once you are accepted into the school of your choice, meet with your financial adviser to go through different options and how you can afford them.

Can you help me design a financial plan?

Getting a bunch of different bills after graduating is overwhelming and you probably won't know where to start. A financial adviser can guide you set up plan payments depending on your budget and even help you enroll in plan built upon your income. An example Skinner and Malito bring up in the article, is of a student who consolidated all of her debt, as the number of loans was bad for her credit score.

A professional economic adviser that specializes on student loans can help us simplify our finances. It may seem a complicated subject, but with their guidance we can understand each loan, create a budget, and organize our payments. In my case, it is helping me enjoy a good quality of life without having to worry about our money.



Resources:

Skinner, Lisa, and Alessandra, Malito. "Finacial advisers help clients graduate          from student debt." InvestmentNews - The Investment News Source for            Financial Advisers, www.investmentnews.com/article/financial-adviser-          help-clients-graduate-from-student-debt

[Untitled image of millenials debt statictics for CNBC] (2016). Retrieved                 November 05, 2017 from https://www.cnbc.com/2017/01/25/women-               carry-bigger-burden-of-student-loan-debt-than-men.html