As a student loan consultant, some of the worst mistakes I’ve seen people make with their student loans have been the fault of a dishonest or incompetent financial advisor. Just today, I had a student loan consulting client using Income Based Repayment whose financial advisor told her to invest instead of pay down her 6.3% student debt. If she had used this strategy over the life of her loans, it would have cost her over $170,000 in unnecessary interest.
The reason for this poor financial advice? Her advisor made a $7,000 commission and would have received nothing if she paid down her student loan debt. I’m seeing this recur enough in my practice that I decided I really need to write an article to inform people why most financial advisors give terrible student loan advice. If you have student loan debt and want me to help you navigate this minefield for a low flat fee, you can email me at firstname.lastname@example.org to learn more.