We have many wonderful colleges in the San Francisco Bay Area! In an earlier blog post, we discussed financial aid and preparing for college. However, many clients come to us who have graduated from college and have college loans. If you are early in the process, you may be considering various types of loans such as subsidized Federal loans, so-called PLUS loans for parents of students in college, or even private educational loans. If you have already graduated from college, you may be confronting student loan debt, however. Don’t panic: debt isn’t necessarily a bad thing, and it can usually be paid off with smart financial planning.

Best CPA FIrmAs professional tax consultants, we often help families and individuals with their financial planning needs, among the common issues is debt of all types. Debt, after all, is not necessarily a bad thing. Having had debt to pay for a college education, for example, can have both a positive financial elements, and a positive cultural elements as well. Another type of debt that can be advantageous is, of course, your home loan debt. Even better, with today’s low interest rates, you may be able to refinance into more advantageous debt. If you are a high income individual, we can help with structuring your financial assets in such a way as to minimize your debt payments and maximize the tax benefits.

Debt from Bay Area College Institutions

Even if you attended an expensive Bay Area institution such as the University of California at Berkeley, San Francisco State university, or even Stanford, you may be able to consolidate your student loans into better interest rates. We can also help you understand which debt it tax deductible, and which debt is not.  For example, it is usually not a good idea to carry high interest credit card debts, it if you can move this debt to your home equity loan, or your home loan itself. Another example, if you have extensive private student loan debt, which could be restructured, and by moving monies around, you could end up with a lower interest rate and more tax-deductible debt. Every situation is unique, and if you live here in the San Francisco Bay Area, call us for a consultation on your financial situation: tax, income, debt, retirement planning – you name it, we can help you plan it, and minimize taxes as well.

If you are just starting out, or you still have student loans, please give us a call, and we can help you with not only your tax planning, but with financial advice on how to structure of your debts and assets. Financial planning is one of the many services that we provide in addition to our goal of being the best CPA firm in the San Francisco Bay Area.