What we currently know about Student Loan Repayments
After a three-year pause, federal student loan interest will resume on September 1, 2023, and payments will resume in October 2023.
A recent study from the Consumer Financial Protection Bureau revealed that 20% of student loan borrowers will struggle to make payments.
Loan repayments will require a rebalancing of monthly finances. Borrowers who ended school in 2020 or later will need to make preparations to schedule their first student loan payments.
Get your student loan questions answered quickly.
Meet with us to receive a FREE objective assessment of your student loans from a financial advisor that works exclusively with dentists. Or email us at firstname.lastname@example.org.
Evaluate your full financial picture.
If you are interested in a more comprehensive discussion about how to make better financial decisions, schedule a free consultation with an advisor.
More Student Loan Information from Dentist Advisors
By Lauren Kearl , Financial Planning Associate
By Victoria Hughes, CFP® , Financial Advisor
By Victoria Hughes, CFP® , Financial Advisor
Student Loan FAQs
The new SAVE plan is an Income Driven Repayment (IDR) Plan. It is replacing the REPAYE plan. If you are on the REPAYE plan, you will automatically be switched over. If you apply to the REPAYE plan before the SAVE plan is live, you will also be automatically enrolled. With IDR plans, your monthly payments are determined based on your income – not how much you owe.
Watch our newest video about the SAVE Plan: “Student Loans: Consider applying for the new SAVE plan“.
The Department of Education understands that nearly 4 years have passed since borrowers have had to make a payment coupled with high inflation over the last 2 years. To offer some protection, they created a 12-month “on-ramp” period. During this time, interest will accrue and payments will still be due, however, they will not be issuing the same consequences as they normally would. Interest won’t capitalize, they won’t report you to the credit bureaus, and your loans can’t default or get sent to collections.
That said, if you can make a payment, then you should. The risks of not putting an intentional plan in place before October 1 and letting the consequences compound are simply not worth it.
- Get in touch with your student loans servicer.
- Identify your monthly loan payment amount.
- Explore income-driven repayment (IDR) plans.
- Confirm that your automatic payment and bank details are current.
- Factor new monthly loan payment into your budget.
For more details, read our newest article “Student loans are officially coming back this fall. “.
Additional Tools and Resources
|Investment Balance||Annual Fee|
|First $1M||$0 - $1M||1.5%|
|Next $1M||$1M - $2M||1.0%|
|Next $1M||$2M - $3M||0.75%|
The cost of planning will be offset by a monthly fee until your investment fee covers the cost of our planning service. See monthly fee reduction schedule below.
|Investment Balance||Monthly Fee Reduction|
Our Pricing Philosophy
At Dentist Advisors, we’ve structured our pricing to give every dentist access to holistic planning. We understand that some of you are just getting started, and many of you have postponed your savings plan in order to pay down debt or reinvest in your practice. So instead of requiring a minimum investment balance, we allow you to offset the cost of planning with a monthly fee until your investment fee is enough to cover our services.
This approach takes the emphasis away from what you’ve already saved, and puts the focus on your potential. As your investment balance goes up, a greater portion of your service charge will be covered by your investments, and your monthly fee will be reduced.
Our pricing model requires that your investments are managed by Dentist Advisors for a few main reasons:
- Our pricing model is predicated on your investment fees as the primary source of payment.
- We want our incentives to be aligned with the growth of your investments.
- As the advisor who knows your asset mix, debt profile, lifestyle requirements, behavioral tendencies, and the trajectory of your practice, we are in the best position to design an investment portfolio that aligns with your risk requirements and timelines for growth.
- Because we understand your personal and practice cash flow, we can manage the tax impact of any changes to your investment plan. This becomes important when you withdraw or reallocate your funds for any reason. The related tax consequences can significantly impact overall returns; especially for dentists who accumulate large balances of after-tax investments. A less informed party could have a more difficult time ensuring that your taxes are managed properly.
Our pricing model ultimately reflects our desire to deliver a comprehensive and long term planning experience for dentists at every career phase.