Student Loan Repayment Assistance

The average graduate with a bachelor’s degree will have amassed more than $40,000 in student debt. Currently there are more than 1.48 trillion dollars in student loans held by more than 44 million borrowers.  Of the 1.4 trillion dollars financed for education purposes, forty percent is held by graduate students.  The current and future generation of professionals whose careers require advanced degrees are facing a tremendous financial burden in the form of student debt.  For many professionals, the balance of their student loans is measured in the 100s of thousands of dollars.  Wealth Planning by Bob Chitrathorn of Simplified Wealth Management provides student debtors with advice about student loan repayment strategies within the context of a larger financial plan.  Since 1994, the federal government has created alternative repayment plans that can provide reduced payments and forgiven debt.  Collectively called Income-Driven Repayment (IDR) these plans differ from traditional repayment options by determining a borrower’s payment off their income rather than their loan balance, repayment term or interest rate.  While IDR plans can provide significant value to some borrowers, other will end up paying more under these plans.  Furthermore, borrowers looking to use IDR plans to reduce the impact of their student debt will have to understand the affects IDR plans have on other aspects of their personal and financial lives.  No longer is student loan repayment advice as simple as paying your loans off as quickly as possible.  Currently, there are 5 different IDR plans with varying terms, conditions and eligibility requirements.  Since the payment amounts in IDR plans, change on an annual basis with the borrower’s changing family and income, the selection of an IDR is an ongoing maintenance that continues to affect other aspects of a borrowers financial and personal livelihood.

Wealth Planning by Bob Chitrathorn of Simplified Wealth Management provides borrowers who are in or entering repayment with services about their loan repayment options, the benefits, and drawbacks of the various repayment plans available to them and any impact that student loan repayment may have on other aspects of the financial plan.  Retirement planning, business planning, and tax planning are all directly impacted by IDR plans and warrant additional considerations that would not be present if a student debtor were not opting to repay their loans under such an agreement.

The student loan advising service is a limited service for clients that would like ongoing support to their student loan repayment plans.

Description of monthly Student Loan Repayment Assistance Service:

The student loan repayment assistance is intended for clients that are enrolled in federal income-driven repayment plans.  This service intends to encourage clients to have annual renewals and receive assistance with annual re-certification for the student loan repayment.  With annual reviews, clients are more likely to receive the service to help them ensure the student loan repayment plan is appropriate for their financial goals and changing life.  The Student Loan Repayment Assistance service includes the following:

    • One updated annual review or (early income documentation) of repayment analysis and options
    • Review of income documentation options and effects on repayment amount
    • Recommendations regarding income verification, compensation and employee benefits
    • Assistance with completion of annual income documentation requirements
    • Updated analysis of risks/liabilities from repayment options
    • One call with a client and their loan servicer to troubleshoot any servicer issues or payment miscalculations

Wealth Planning by Bob Chitrathorn of Simplified Wealth Management and its investment advisor representative engage in seminar/workshops with schools, alumni associations, professional trade organization, among other groups that have an interest in student loan repayment’s importance in financial planning.  Wealth Planning by Bob Chitrathorn of Simplified Wealth Management and its investment advisor representative do not charge any fees for these events, as the information provided is general in nature and not intended for specific financial advice to any one person, organization, or company.