Why you may not need a financial planner for education expenses

When planning for higher education, especially in today’s financially demanding environment, students often wonder if they should seek the help of a financial planner. At first glance, hiring a professional to manage education expenses may seem like a smart choice, but in reality, it may not be the best route. While financial planners excel at long-term investment strategies, education financing is often straightforward and can be managed effectively using simple, cost-efficient tools. Here’s why hiring a financial planner might not be necessary, and in some cases, even disadvantageous.

Ankit Mehra, co-founder and CEO of GyanDhan, says, “Financial planners may lack specific expertise in student loans. Most planners specialize in general financial management but may not fully understand the nuances of education financing. Government and private lenders have their own terms, repayment options, and forgiveness programs that require specialized knowledge. An education loan expert or advisor may be better equipped to guide you through the specific loan products available, making them a more focused and affordable alternative.”

One of the most significant drawbacks of hiring a financial planner is the costly service they provide. Financial planners charge fees, adding an unnecessary financial burden at a time when students are already grappling with high tuition fees, living costs, and other education-related expenses.

Another possible factor to consider is the potential for conflicting interests. Some financial planners receive commissions or incentives from recommending certain loan products or investment plans. This can lead to biased advice, where the planner’s financial gain might come before the student’s best interest.

Mehra says, “Financial planners may also lack awareness of niche scholarships and grant opportunities. A financial planner might not be familiar with these programs or how to apply for them, causing students to miss out on vital funds that could alleviate their financial burden.”

Perhaps one of the most overlooked issues is that financial planners often overcomplicate simple decisions. Managing education expenses is typically a straightforward process, especially with Government bank loans that have fixed interest rates and clear repayment.

The best way to manage your education expenses is by using online calculators. “In today’s digital age, there are simple financial tools available to handle budgeting, loan calculations, and expense tracking. From free online calculators to apps that monitor student loan repayment, these tools offer everything a student needs to manage their finances effectively,” says Mehra.

These online calculators provide you with easy calculations helping you to get effective unbiased outcomes and helping you understand how you can proceed further with your education planning in future.