Getting strategic about student loan repayment can be a vital part of financial planning. The majority of college graduates leave school with some type of student loan debt, so it’s important to have a strategy in place for paying down debt that complements the rest of the goals you and your family are working toward.
If you have federal student loans, the government prescribes a handful of repayment options, each with pros and cons. (We’ll cover private student loans after recapping the federal repayment options.)
You may also be able to consolidate student loans via a private lender. Keep in mind that private loans don’t come with the same protections (such as deferment and forbearance) as federal student loans.
Additionally, the recently-passed SECURE Act 2.0 allows employers to start offering an employer match to employees paying down student loans. To learn more about that provision, read our full white paper on SECURE 2.0.
A financial advisor can help you evaluate different repayment options. We suggest going to a fee-only fiduciary for this type of advice, so you know that your advisor is both legally obligated to put your best interest first AND that they aren’t being paid to promote any specific product. As a fee-only fiduciary firm, all of the advisors at Bogart Wealth meet these criteria.
If you have follow-up questions on student loans or want to discuss how to build repayment into an overall financial plan, let’s talk.