b'#3 Pay attention to changes in income.Especially ifyou a new loan with a certain interest rate, whether fixed or variable, for a you have really low monthly payments, it is important tocertain duration of time, known as the term of the loan.note if your income has changed (decreased or increased), because you will have to recertify that income at some#7 Work with an advisor who is educated on student loan point, and that could dramatically change how muchrepayment plans and who knows your field of study. Not all financial youre paying on a month-to-month basis.advisors understand the complexities of student loan repayment in the field of dentistry. Find one who does- its worth it to work with someone who has # 4 Income Driven Repayment (IDR) versusexperience in this area.refinancing? Crunch the numbers. Many of the questions that we get are around should I stay on an income-drivenAbout Treloar & Heiselrepayment plan or refinance? Valid question, especiallyTreloar & Heisel, an EPIC Company, offers dental and medical professionals with interest rates as low as they are now (2022). Youa comprehensive suite of financial products and services ranging from need to consider several factors.Lets say you refinancebusiness and personal insurance to wealth management. We are proud your loan, the cost is going to be the interest that you payto assist thousands of clients from residency to practice and through on it, and the length of loan repayment is typically fixed.retirement. Our experienced teams deliver custom-tailored advice through an However, with income-driven repayment, calculating costactive local presence, while our strong national network ensures that clients becomes more complex, because the cost is dependentexperience the same high level of service throughout the country. For more on your income and its growth over the course of yourinformation, visit us at treloaronline.comcareer. Youll need to make some assumptions (which mayTreloar & Heisel, Treloar & Heisel Wealth Management, and Treloar & Heisel or may not hold over time). Also, certain IDR plans willRisk Management are all divisions of Treloar & Heisel, LLC. cap your monthly loan payments at your standard 10-year amount, one of the exceptions being Revised Pay As YouInvestment Advice offered through WCG Wealth Advisors, LLC, a Registered Earn (REPAYE). There is no maximum monthly paymentInvestment Advisor doing business as Treloar & Heisel Wealth Management. for REPAYE. If your income increases to this level, you mayTreloar & Heisel Wealth Management is a separate entity from The Wealth pay your loans off at a much higher interest rate comparedConsulting Group and WCG Wealth Advisors, LLC. to refinancing.Insurance products offered separately through Treloar & Heisel and Treloar & #5 Dont assume forgiveness. Income-DrivenHeisel Risk Management. Repayment plans will forgive any outstanding loan balance remaining after 20-25 years depending on the plan.Treloar & Heisel, LLC, Treloar & Heisel Wealth Management, and WCG Theres no guarantee that will happen. Your income mayWealth Advisors, LLC do not offer tax or legal advice. increase enough that your loans will be repaid in full prior to receiving any forgiveness, often at a higher interest rate (more costly) compared to if you refinanced. If the balance of your loan is forgiven, its important to know the forgiven amount may be treated as ordinary income and be taxable in addition to your existing income.To that end, you may be stuck with a large tax bill that will need to be paid out of your existing assets. #6 Understand the difference between consolidation and refinancing. Consolidation combines your outstanding loans and allows you to make a single payment based on a weighted average interest rate rounded up by 1/8th percent. It typically does not reduce how much interest you pay. Consolidation may make sense in certain situations. Beware of companies offering to consolidate your loans for a fee. These are often a scam. You should always work directly with your loan servicer and trusted advisor to make changes to your repayment plan. Refinancing, on the other hand, entails finding a lender that will pay off your federal loans, and then issuing AAP Periospectives| 29'