Most people wouldn’t think twice about the integrity of the guidance that academic advisers and financial aid counselors provide.
But student loans are big business…. so maybe you should be thinking twice!
In many cases, it’s the job of the financial aid counselor to get you as many loans as possible, to build revenue for the college.
Unfortunately, the very people that are supposed to be helping you enhance your educational and financial future, might really be trying to help their own wallets, at your expense.
How It Works
Financial aid counselors and student loan lenders sometimes work together to gain profit off of your borrowing.
Here’s how it works:
1. The student loan lenders approve loans that they would not normally approve (due to the substantial tax cuts and write-offs that they receive for extending credit for student loans).
2. The school promptly benefits because they cash in on the loan, or receive funds for your education, immediately.
3. Financial aid advisers receive a special “bonus” for bringing in a certain amount of revenue to the school.
4. If and when you are late on your monthly payments, lenders get a hefty tax cut.
A Common End Result
A common end result borrowers face is:
a) they receive little to no education on what their loan details are, and how to pay them back.
b) the school gets paid from their borrowing, and offers little return in education or post-graduate employment assistance;
Because they are young and inexperienced, and because the system is so challenging, students can end up with more debt than they can pay back.
This is far from a recipe for borrower success, but it CAN be averted with responsible borrowing, planning and awareness.
As a student loan consultant, I can vouch for the fact that for most every student loan debt problem, there is a solution!
At the heart of every solution is education. Schedule a free consultation with me, and we’ll go over your loans, your options, & your best possible repayment scenario — that way, you can learn about the complicated, but not hopelessly incomprehensible, journey of student debt repayment.
I look forward to being of help!