Skip to content

This site uses cookies to store information on your computer. Some are essential to make our site work; others help us improve the user experience. By using the site, you consent to the placement of these cookies. Read our privacy policy to learn more.

Close
AICPA-CIMA
  • AICPA & CIMA:
  • Home
  • CPE & Learning
  • My Account
Journal of Accountancy
  • TECH & AI
    • All articles
    • Artificial Intelligence (AI)
    • Microsoft Excel
    • Information Security & Privacy

    Latest Stories

    • AI-driven spreadsheet tools — what CPAs need to know
    • Is spending on technology spinning out of control?
    • Using 3 Excel View tools to manage large spreadsheets
  • TAX
    • All articles
    • Corporations
    • Employee benefits
    • Individuals
    • IRS procedure

    Latest Stories

    • Job cuts mean strong 2025 tax season may be hard to repeat, IRS watchdog warns
    • IRS removes associated property rule in final interest capitalization regulations
    • Spouse is not entitled to sales proceeds in a judicial sale of taxpayer’s home
  • PRACTICE MANAGEMENT
    • All articles
    • Diversity, equity & inclusion
    • Human capital
    • Firm operations
    • Practice growth & client service

    Latest Stories

    • PCAOB publishes guidance related to Audit Evidence amendments
    • AI-driven spreadsheet tools — what CPAs need to know
    • Job cuts mean strong 2025 tax season may be hard to repeat, IRS watchdog warns
  • FINANCIAL REPORTING
    • All articles
    • FASB reporting
    • IFRS
    • Private company reporting
    • SEC compliance and reporting

    Latest Stories

    • SEC accepting Professional Accounting Fellow applications
    • SEC names new chief accountant
    • SEC ends legal defense of its climate rules
  • AUDIT
    • All articles
    • Attestation
    • Audit
    • Compilation and review
    • Peer review
    • Quality Management

    Latest Stories

    • PCAOB publishes guidance related to Audit Evidence amendments
    • AICPA unveils new QM resources to help firms meet Dec. 15 deadline
    • 8 steps to build your firm’s quality management system on time
  • MANAGEMENT ACCOUNTING
    • All articles
    • Business planning
    • Human resources
    • Risk management
    • Strategy

    Latest Stories

    • Business outlook brightens somewhat despite trade, inflation concerns
    • AICPA & CIMA Business Resilience Toolkit — levers for action
    • Economic pessimism grows, but CFOs have strategic responses
  • Home
  • News
  • Magazine
  • Podcast
  • Topics
Advertisement
  1. newsletter
  2. Cpa Insider
CPA INSIDER

How CPAs can help clients with student loan debt

Student loan debt counseling is a growing opportunity.

By James Sullivan, CPA/PFS, and Melissa Towell
August 14, 2017

Please note: This item is from our archives and was published in 2017. It is provided for historical reference. The content may be out of date and links may no longer function.

Related

August 7, 2017

Number of workers raiding retirement funds rises

July 24, 2017

Help your clients make sense of Medicare

July 10, 2017

Help clients afford health care in retirement

TOPICS

  • Personal Financial Planning
    • Practice Management

Student loan debt is a long-term drag on wealth accumulation for young people. As economists at the Federal Reserve Bank of New York recently determined, graduates with student loan debt are less likely to own homes than graduates without it. A recent AICPA survey found that half of all families with student loan debt are putting off saving money for retirement so they can pay off their debts. Student debt is an especially important issue for women, who make up 56% of all undergraduate students but hold 65% of all student loan debt.

Nationally, student loan debt is a mounting problem. Not only is it the second-fastest growing type of debt (after home mortgages), but it now exceeds the total amount of credit card debt. And many of the debtors are behind in their payments.

It is highly likely that many of your clients or prospective clients have children with large amounts of student debt. Many “boomerang” children—those moving back home to live with mom and dad—are unable to live on their own, in part, because they owe thousands of dollars of student loan debt.

However, student loan repayment alternatives are complex. Federal loans alone may involve:

  • Over 50 repayment strategies;
  • Complex rules regarding repayment strategy eligibility that borrowers seldom understand and have difficulty implementing;
  • Assistance for the borrower if the repayment plan causes financial hardship;
  • A variety of default options;
  • Garnishment appeal procedures;
  • Debt consolidation choices; and
  • Cancellation and forgiveness options.

Often, borrowers struggle to make sense of their options. This is where CPAs can make a difference.

By offering student loan debt counseling as a service, CPAs can help clients and their families better handle their debt. They can play a key role in helping borrowers understand which repayment programs they may qualify for and help them reduce the burden of their student loans so that they can focus on long-term wealth accumulation.

Service opportunities

The potential client base for student loan debt counseling is huge and growing. According to the Federal Reserve Bank of New York, there are approximately 44 million student loan borrowers. CPAs may be surprised how many of their existing older clients have children or grandchildren burdened with student loan debt.

Advertisement

Sometimes, a CPA planner’s greatest value will be in helping borrowers avoid mistakes. For example, many borrowers are enticed by advertising and direct-mail offers to consolidate and refinance their federal government student loans through private lenders. However, by doing so, they can inadvertently lose the ability to take advantage of valuable repayment strategies. Such offers need to be evaluated by someone knowledgeable about student loans.

Young clients can benefit from student loan debt counseling in more ways than one. For many, it may be their first opportunity to learn the value of financial planning, especially the careful use of debt. Having a CPA walk them through an analysis of their debt and the repayment alternatives may help many student debtors make more prudent financial decisions in the future.

Where to begin

The counseling process can be straightforward if you know what information to ask for and are using the right tools.

If a client has federal student loans, the best document to request is his or her National Student Loan Data System (NSLDS) file. This file provides much more detail than a typical account statement. It includes information about the school attended as well as the loan’s balance, interest rate, origination dates, repayment status, past repayment status, and servicer information. Ask the borrower to provide the information since access to the file is confidential. 

You will also need additional information on the debtor’s adjusted gross income and family size.

Several software programs are available to help in the analysis. One example is eFiscal. This program uses a series of questions, the analysis of the NSLDS file, and the debtor’s income and family size to provide an output of unique student loan solutions along with a step-by-step guide that includes important forms and resources. CPAs can use this program by uploading the client’s NSLDS file as a .txt file.

Another good source of information is the Consumer Financial Protection Bureau section on student loans.

Advertisement

If the borrower has private student loans, however, the situation is more complicated. Federal government student loans provide the greatest opportunity for alternative repayment strategies, whereas private student loans vary in their terms for modification. Private lenders control the ability to lower the interest rate, extend payment terms, or accept a settlement offer on behalf of the debtor. In extreme circumstances, the debtor may need to file for bankruptcy.

Private student loans also present an opportunity to assist clients with obtaining loan modification terms from the private lender. The CPA is in a good position to represent the client in such negotiations given his or her familiarity with the client’s financial situation. 

A needed service

Gaining and sharing knowledge about student loan debt can help you build on your trusted adviser relationship with clients. In fact, many clients now expect CPAs to be able to address student debt issues. Being able to help them in this complex area can help you differentiate yourself from competitors. With the right tools, you can take advantage of a growing practice development opportunity while assisting student loan borrowers to get on track with wealth accumulation. 

To learn more about assisting clients with student loan debt, read Sullivan and Towell’s previous articles on what to know before taking out a student loan, options for retirees who are paying a family member’s student loans, income-driven repayment plans, and debt relief for students who attended for-profit schools.

James Sullivan, CPA/PFS, is a board member, and Melissa Towell is a student loan counselor, both at Consumer Debt Counselors Inc., a not-for-profit debt counseling agency. To comment on this article, email senior editor Courtney Vien.

Advertisement

latest news

October 3, 2025

PCAOB publishes guidance related to Audit Evidence amendments

October 2, 2025

Job cuts mean strong 2025 tax season may be hard to repeat, IRS watchdog warns

October 2, 2025

Is spending on technology spinning out of control?

October 1, 2025

IRS removes associated property rule in final interest capitalization regulations

September 30, 2025

IRS withdraws prop. regs. affecting corporate spinoff transactions

Advertisement

Most Read

Why accountants need to master the art of reading the room
MAP Survey finds CPA firm starting pay on the rise
IRS finalizes regulations for Roth catch-up contributions under SECURE 2.0
Paper tax refund checks on the way out as IRS shifts to electronic payments
NASBA, AICPA release proposed revisions to CPE standards
Advertisement

Podcast

October 2, 2025

Car talk: M&A, AI and EVs changing the dealership landscape

September 25, 2025

Professional liability risks related to Form 1065, CPA firm acquisitions

September 18, 2025

‘We’re still the thinkers’ — a reminder for tax pros in the AI era

Features

AI-powered hacking in accounting: ‘No one is safe’
AI-powered hacking in accounting: ‘No one is safe’

AI-powered hacking in accounting: ‘No one is safe’

Building a better firm: How to pick the proper technology
Building a better firm: How to pick the proper technology

Building a better firm: How to pick the proper technology

Why accountants need to master the art of reading the room
Why accountants need to master the art of reading the room

Why accountants need to master the art of reading the room

How BI and analytics enhance management accountants’ partnering role
How BI and analytics enhance management accountants’ partnering role

How BI and analytics enhance management accountants’ partnering role

SPONSORED REPORT

Preparing clients for new provisions next tax season

Preparing clients for new provisions next tax season

As the 2025 filing season approaches, H.R. 1 introduces significant tax reforms that CPAs must be prepared to navigate. These legislative changes represent some of the most comprehensive tax updates in recent years, affecting both individual and corporate taxpayers. This report provides in-depth analysis and guidance on H.R. 1.

From The Tax Adviser

September 30, 2025

Current developments in taxation of individuals: Part 1

August 30, 2025

2025 tax software survey

August 30, 2025

Are you doing all you can to keep the cash method for your clients?

July 31, 2025

Current developments in S corporations

MAGAZINE

October 2025

October 2025

October 2025
September 2025

September 2025

September 2025
August 2025

August 2025

August 2025
July 2025

July 2025

July 2025
June 2025

June 2025

June 2025
May 2025

May 2025

May 2025
April 2025

April 2025

April 2025
March 2025

March 2025

March 2025
February 2025

February 2025

February 2025
January 2025

January 2025

January 2025
December 2024

December 2024

December 2024
November 2024

November 2024

November 2024
view all

View All

http://JofA_Default_Mag_cover_small_official_blue

PUSH NOTIFICATIONS

Coming soon: Learn about important news

CPA LETTER DAILY EMAIL

CPA Letter Logo

Subscribe to the daily CPA Letter

Stay on top of the biggest news affecting the profession every business day. Follow this link to your marketing preferences on aicpa-cima.com to subscribe. If you don't already have an aicpa-cima.com account, create one for free and then navigate to your marketing preferences.

Connect

  • X Logo JofA on X
  • facebook JofA on Facebook

HOME

  • News
  • Monthly issues
  • Podcast
  • A&A Focus
  • PFP Digest
  • Academic Update
  • Topics
  • RSS feed rss feed
  • Site map

ABOUT

  • Contact us
  • Advertise
  • Submit an article
  • Editorial calendar
  • Privacy policy
  • Terms & conditions

SUBSCRIBE

  • Academic Update
  • CPE Express

AICPA & CIMA SITES

  • AICPA-CIMA.com
  • Global Engagement Center
  • Financial Management (FM)
  • The Tax Adviser
  • AICPA Insights
  • Global Career Hub
AICPA & CIMA

© 2025 Association of International Certified Professional Accountants. All rights reserved.

Reliable. Resourceful. Respected.