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When you’re really not sure the best way to pay off your student loans, a student loan counselor could help. Not to be confused with the financial aid professional that guides you through entrance and exit counseling for federal loans, student loan counselors help you come up with a strategy that goes beyond picking repayment plans. But their services aren’t free — and some might even be scams.
Student loan counseling works by giving you personalized advice on how to pay off your student loans. It’s typically offered by nonprofit credit counseling agencies along with other services like debt management and bankruptcy support.
You can typically sign up over the phone or by filling out an online form. Counseling sessions usually take place over the phone, though some agencies also offer in-person counseling.
A student loan counseling session typically includes:
After reviewing the benefits and drawbacks of each of your options. you’ll work together to create a personalized plan to repay your student loans. This might include consolidating your federal loans, refinancing your private loans, taking steps to avoid default or applying for forgiveness.
Student loan counseling can cost anywhere from $50 to $200, depending on the agency and the level of counseling you sign up for.
Here’s what you can expect to pay from three student loan counseling agencies:
Company | Cost per session | Services included in the session |
---|---|---|
Clearpoint | $99 |
|
GreenPath |
| Student loan counseling
Student loan enhanced support
|
Credit.org | Typically $125 |
|
The Consumer Financial Protection Bureau (CFPB) has been cracking down on companies that charge high fees for student loan help and often fail to deliver promised results, such as eliminating student loan debt or lower your monthly repayments. Sometimes these companies pose as student loan counseling agencies. Red flags include:
You can read up on what to watch out for with our article on student loan scams.
Not sure which agency is right for you? Ask yourself these four questions to narrow down your options:
Need help applying for complicated forgiveness programs like Public Service Loan Forgiveness (PSLF)? Want to avoid defaulting on your loans? Different agencies offer different types of services that might suit some needs better than others. Figuring out your needs first can help you weed out your options.
Typically, you need to fork over at least $100 for credit counseling at a nonprofit agency. If you’re seriously struggling with debt, expert advice might pay for itself. But if you can’t afford the cost up front, you might want to look into other options.
Do some research by visiting the Federal Student Aid website or checking online guides to student loan repayment plans and forgiveness programs. You might be able to find the information you need for free.
Your servicer can also be a great resource for information about your repayment, deferment and forbearance options. You can usually sign in to your account online to get access to all of the different options available. If you still need help, reach out to customer service, where you might be able to get more personalized advice.
Paying for student counseling might not always be worth it. Use these criteria to help you decide if it’s the right step for you.
If you’re on the fence about signing up for student loan counseling, you might want to consider one of these options instead:
Student loan counseling could be a good resource if you’ve done some research on your own and still need help handling your student loan repayments. But it might not be worth it if you haven’t explored other free options first. You can get started with our guide to student loans.
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