The burden of college debt is something that most graduates have to deal with. Other than a mortgage, you will likely never have a debt as large as your student loan. This causes many young adults to move back in with their parents after graduation, simply because they cannot afford to live on their own yet. Some companies are even helping ease this burden by offering loan repayment assistance. In this article, you’ll learn how student loan refinancing can lower your interest rate and get you out of debt faster.
Whether you are county sheriff or a nuclear engineer, student loan refinancing can help you. Student loan debt is a huge burden for millions of Americans, representing the second-largest form of consumer debt in the country. According to the newest data available, the average student loan debt per borrower for the Class of 2016 is $27,975.
When the federal government extends loans to students to attend college, the government does not check credit and everybody receives the same rate. This is a great program for most students who need help with their tuition but are unlikely to be able to borrow at a good rate from private lenders. But as the years pass, the government does not offer to refinance these loans at lower interest rates… even if market interest rates have dropped and graduates have steady jobs and good credit. As a result, many graduates end up paying higher rates than they could get from a private lender by refinancing their federal loans.
Like any form of debt, your goal with a student loan should be to pay as low an interest rate as possible. By refinancing student loans, borrowers may be able to consolidate multiple loan payments into one convenient, low-interest rate, PenFed loan. Also, depending on the length of the loan term, college grads can save money by refinancing their student loans because it may significantly lower your recurring monthly payment. To qualify, you need a credit score of 700 or higher and a steady income, or access to a co-signer.
Student loan refinancing lowers your interest rate, simplifies your payments and helps you get out of debt faster. Get started, find your new interest rate in less than 60 seconds with PenFed by clicking this link.