What are the best ways to help a customer with student loans?

Student loans can be a source of stress and frustration for many customers, especially if they struggle to keep up with payments, interest rates, and repayment options. As a financial service provider, you have the opportunity to help them manage their debt, improve their credit, and achieve their financial goals. Here are some of the best ways to help a customer with student loans.

1 Assess their situation

The first step is to understand the customer's current situation, such as how much they owe, what kind of loans they have, and what their income and expenses are. This will help you identify their challenges, needs, and opportunities. You can use tools like loan calculators, budget planners, and credit reports to get a clear picture of their financial health and debt ratio.

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DJ Rausa

Associate Attorney at Marshall & Associates, PLLC
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One thing that is incredibly valuable is to review the student loan borrowers account with the US Department of Education. This can be found at studentaid.gov. Their National Student Loan Data System report will give the fine details of their Federal Student loans

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Mangesh Zope

Founder@Peaceful-Loans.com | Making life easy for HNIs and Future HNIs of India with Unbiased Advice and Unreasonable hospitality
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In India, Students are upfront about their academics and admit they have secured. Education loan is mostly evaluated on the student's academics and the family's(co-borrowers) financial strength. It is important to assess both of these to enable the solution for their education loan requirements. Our, Peaceful-Loan, team does exactly this. It is done in a one-on-one manner to maintain confidentiality around financials.

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2 Educate them on options

The next step is to educate the customer on the different options they have to reduce their debt burden, such as refinancing, consolidation, repayment plans, forgiveness programs, or deferment. You should explain the pros and cons of each option, how they affect their interest rates, monthly payments, and loan term, and what the eligibility criteria and application process are. You should also provide them with relevant resources and contacts to help them make informed decisions.

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Mangesh Zope

Founder@Peaceful-Loans.com | Making life easy for HNIs and Future HNIs of India with Unbiased Advice and Unreasonable hospitality
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Before jumping to the step, where students start looking for an option. It is important to get an answer to the question that if I am eligible for an education loan sanction. Then next step could be which all lenders can approve my education loan. Our team at Peaceful-Loan helps students do both.

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Laurelee Curcione

Mount St. Helens Museum owner
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When I worked on my Ph. D, my student loans came to over $250K and I could never find a position to use it because I had no life experience. What do you do at that point? Take the income driven plan. Why? You only pay a small percentage of your earnings. It’s fair and easy at that point to repay.

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3 Offer solutions

The third step is to offer solutions that match the customer's goals, preferences, and circumstances. You should present them with realistic and customized scenarios that show how they can save money, lower their interest rates, or shorten their loan term by choosing a certain option. You should also highlight the benefits and risks of each solution, and how they align with the customer's values and priorities.

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Mangesh Zope

Founder@Peaceful-Loans.com | Making life easy for HNIs and Future HNIs of India with Unbiased Advice and Unreasonable hospitality
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Solutions possible need to be seen in the light of what is your priority: 1. I am awaiting visa interview and hence turn around time is my top priority. 2. Strong financial profile + Collateral available + Good university + I have time - then one should have all options accessible. It is important to choose a few options at max 3 and apply for them. Doing this individually on your own can be challenging and cumbersome, that is where our team at Peaceful Loan can help. We can take a large chuck of your execution work load and free up your time.

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4 Support them throughout

The fourth step is to support the customer throughout their journey, from applying for a new loan or changing their repayment plan, to making regular payments and monitoring their progress. You should provide them with clear and timely communication, feedback, and guidance, and address any issues or concerns they may have along the way. You should also celebrate their achievements and milestones, and encourage them to stay on track and motivated.

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Mangesh Zope

Founder@Peaceful-Loans.com | Making life easy for HNIs and Future HNIs of India with Unbiased Advice and Unreasonable hospitality
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It is not just about identifying the right lenders for you. As they say, ideas are worthless without execution. Rigour of execution is needed in terms of 1. Right documents submitted on time. 2. Constant follow-up on the status of loan applications. 3. Ability to negotiate terms like interest rate, processing fees, insurance amount and many more.

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5 Review their situation

The fifth step is to review the customer's situation periodically, such as every six months or a year, to see if their needs or goals have changed, and if their current solution is still optimal. You should ask them for feedback, suggestions, and testimonials, and use them to improve your service and relationship. You should also look for opportunities to upsell or cross-sell other products or services that can enhance their financial well-being.

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6 Build trust and loyalty

The sixth and final step is to build trust and loyalty with the customer by showing that you care about their success, satisfaction, and happiness. You should thank them for choosing you, reward them for their loyalty, and ask them for referrals or reviews. You should also stay in touch with them regularly, and offer them relevant and valuable content, advice, and incentives. By doing so, you will not only help them with their student loans, but also create a long-term and profitable relationship.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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What are the best ways to help a customer with student loans?

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1 Assess their situation

2 Educate them on options

3 Offer solutions

4 Support them throughout

5 Review their situation

6 Build trust and loyalty

7 Here’s what else to consider

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