2016 the average graduate with a bachelor’s degree will have amassed more than $35,000 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. CSLA Financial Inc. 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.
CSLA Financial Inc. provides borrowers who are in or entering repayment with advisory 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 added complexity and support that is required to be considered by the investment advisor is represented in the additional costs in excess of traditional portfolio management and/or financial planning. CSLA Financial Inc. licenses software from CSLA Tech LLC to assist in the repayment analysis and advise over the life of the borrower's loan repayment.
CSLA Financial offers a student loan repayment assistance plan that is paid on a monthly basis. The student loan advising service is a limited service for clients that would like ongoing support to their student loan repayment plans paid monthly. The service is exclusive of any hourly service provided for an initial student loan repayment analysis.
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. Often times clients are hesitant to have a review due to the hourly fee charged at the time of completion. By spreading the fee out over the year, 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. This fee is anticipated to replace an average of 2 hours of advisory service time per client per year. The Student Loan Repayment Assistance service includes the following:
CSLA Financial Inc. 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. CSLA Financial Inc. 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.
For a complete description of services, fees and conflicts of interest please review CSLA Financial's ADV part 2 brochure
CSLA Financial Inc.