Disclaimer: Student Loan Tutor is an independent business. We are not affiliated with and do not work for the US Internal Revenue Service (IRS) or the Department of Education. We are not a collection agency. All services are provided at the direction of our clients.

6 Reasons to Speak with a Student Loan Expert Before Payments Resume

With the current Pandemic Forbearance, many financial advisors think there's not urgency to address student loans for their high-balance clients. But here are several factors you might consider before deciding to do nothing.

1. Losing Months Towards Forgiveness
Be sure your client is in an Income-Driven Repayment Plan. If your client hasn't enrolled yet, then they are not earning credits (months) towards forgiveness that they could be. By waiting to enroll, they’re throwing away these free months that could be counting towards their taxable event of canceled debt after the 20 to 25 year term. This is especially impactful for someone who wouldn’t immediately qualify for a $0 payment. Regardless of what your client’s estimated payments will be after payments resume, they will qualify for $0 monthly payments and 0% interest until the freeze on payments lifts.

2. It’s Your Fiduciary Responsibility to Ensure Clients Prepare Now
When borrowers reach forgiveness at the end of their repayment program, the federal government views the canceled balance as taxable earned-income. Waiting to make a savings strategy for this tax event is costing your clients money. As you’re well aware, the sooner they begin building wealth in a portfolio or savings option, the less expensive the policy or investment will be for them.

Do your clients know the exact tax implication they’ll be seeing down the road? Have you prepared them with specific numbers for their situation? If they don’t know what kind of tax implication to expect with an investment or savings plan in place, they’re not prepared.
As their financial advisor and fiduciary, it’s best to advise them on this significant expense, and ensure they are preparing now.

When your clients strategize with us on their loans, they will receive a report detailing their expected tax implication, presenting an immediate need for them to work with you on implementing a savings strategy.

3. Time-Sensitive Need to Consolidate Older Loans
Borrowers with Commercially held Federal Family Education Loans (FFEL) loans under the Department of Education, HEAL Loans or Perkins loans must consolidate their loans into a Direct Consolidation Loan to receive a one-time account adjustment to qualify for massive credits (months) towards forgiveness that may not have been eligible previously. Federal Student Loan borrowers must act by the end of 2023, in order to receive the one time account adjustment to have additional months qualify toward the 20-25 Year Income-Driven Repayment plan or Public Service Loan forgiveness. You can learn more about that here.

4. Catching Potential Refunds Before It’s Too Late
The Department of Education considers most payments made since March 2020 to be “overpayments”. Borrowers who made payments during the covid deferment will most likely want to seek a refund, and must submit their request before the freeze on payments lifts.
If requests on payments made after March 2020 are not made by the time the Pandemic Forbearance is lifted, then no refunds will be granted when payments resume. Federal Student Loan repayments are supposed to resume.

Borrowers will not receive refunds on payments made since the Pandemic Forbearance after payments resume 60 days after the Supreme Court Decision on Biden’s Proposal of up to $20k in loan forgiveness or if no decision is made by June 30th, 2023, 60 days from then - Essentially, September 2023.

5. Beat the Rush to Avoid Costly Errors and Delays
There are 43 million federal student loan borrowers in America and they are almost all experiencing this payment pause by the Department of Education. Loan servicers will be overwhelmed with applications when everyone is submitting their recertification paperwork once the freeze on student loan payments lifts. The next 60 days is the optimal time to beat the rush and reap the benefits of fast processing speeds, lower error rates, unnecessary delays, and possible application rejections. In a recent audit, loan servicers were found to have a 61% error rate negatively impacting borrowers.

6. Get on our Schedule Now and Waive the Planning Call Fee
Student Loan Tutor is a small, but mighty firm, and no one else does what we do for high-balance Federal Student Loan borrowers. Our tutor’s schedules will be booked out for weeks or months once payments resume.

As an added bonus for new financial partners, we’re waiving the $150 Planning Call Deposit Fee for your first client referral until the Pandemic Forbearance lifts. If you have spoken with a client or prospect recently who you think might benefit from our strategic services, there’s no better time to get started than now.

Here’s the link to book their FREE evaluation call.

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The 5 Star Student Loan Advisor

Student Loan Tutor is ranked 5.0 stars on the Better Business Bureau, Facebook and Google.

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5/5 stars. Established 2015.

Why Clients Love Us

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“Wow. These guys really take care of you. Not only are they financial savants, but they’re also wonderful people with seemingly endless energy and compassion. They take the time to answer ALL your questions (whether moral, emotional, or technical), and do almost every single part of the process FOR YOU, so you don’t have to stress out about making a small mistake that could cost you tons of money. I feel like they lifted a small elephant off my back. Thank you, thank you!.”- Lauren Buckley - Student Loan Tutor Client

-Lauren B.

Find the Best Repayment Program

When your clients speak with a Tutor, they'll show them the cost of each repayment program and which one will save the most money.

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Forget About Paperwork

After crafting the ideal repayment strategy, we'll complete all paperwork and deadline followups. It literally couldn't be easier.

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Our Ideal Client

-$100k+ in Federal Student Loan Debt ($75k on the low end)

- Self-employed or making under $300k per year base salary (not including bonus, commissions or additional incentives)

-Or borrowers working for a Non Profit, 501(c)3 or Government Entity because they qualify for Public Service Loan Forgiveness

Methods for scheduling the free evaluations for your clients

Book here: https://calendly.com/free-evaluations/fa

OR

Email your client with the booking link above.

(As the Financial Advisor, if you'd like to be on the strategy consultation, please have the borrower inform our team on the Evaluation call. However our Tutor's follow up with the borrower's Financial Advisor after the strategy call to show what is necessary for the tax implication.)

Your Team

Zack Geist | Founder & CEO
Tony Ferra | Tutor Dept. Manager
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Genevieve Bronson | Processing Manager
Michael Cundick | COO
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Amie Engberg | Recertification Manager
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Derek Snel | Regional Director
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Dani Lynch | Director of Business Development
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Stacey Rogers | General Counsel
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Savannah Sbaiti | Client Success
Joe Fiacco | Student Loan Tutor
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Kevin Harvey | Student Loan Tutor
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Thatcher Norton | Student Loan Tutor
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Sara Redman | Processing Lead
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Kerry Derry | Processing Lead
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Kelli Case | Processing Lead
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Terni Blood | Processing Lead
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Adam Deutsch | Processing Lead

More About Student Loan Tutor

Our organization has solved the student loan aspect of financial planning. We have helped free up over 3 million dollars per month in cash flow for thousands of high balance student loan borrowers. Which equates to tens of million dollars more that our financial partners have redirected towards savings and investments for their clients.

Our clients are highly educated professionals that carry high student loan balances and have high income generating potential. These are doctors, lawyers and other self-employed professionals. As you know, these are people that require large insurance policies and tend to reach tenure with millions of dollars under management. Instead of waiting for them to pay down their student loans, send them to us for a professional solution that improves their financial situation.

We charge our financial partners nothing to use our services. We charge the clients a fee for service, which is immediately and directly offset by the money we save them. We then share our strategy report with their financial professional so they can act on the necessary savings recommendations.

We DO NOT refinance our clients' student loans. We accomplish our results through a process of consulting, financial strategy and document preparation with the federal student loan servicers directly. Rarely does a refinance benefit a high balance borrower.

We’ve become the largest, most reputable and longest running full service student loan solution that exists. Established in 2014 and actively serving thousands of clients each year. We’ve maintained a nearly flawless reputation on Trustpilot and as an accredited A+ BBB business.

Now is the time to act. Student loans are scheduled to go into active repayment 60 days after the Supreme Court decision about the $10k to $20k in Biden Forgiveness, so at the latest September 1st, 2023.  We want to make sure to get ahead of this for your clients and potential clients who currently have student loans and make sure they are in the best option for Income Driven Repayment plans before payments resume.

Your clients can get a huge refund. Any of your clients/potential clients who have made student loan payments in 2020, 2021 and 2022, can have that money refunded. We’ve had 7 figures plus returned to our clients this year alone.

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