kelun8

Refinancing Student Loans?

Hi all, straight up - owe about 40k of students loans, spread over a 20 year plan and would be paying back more than 2x what I originally borrowed with all the interest. Now that I'm making more money as my sales career pick up, I want to know the best way to pay this off faster and less. I still want to pay it out over time instead of a huge lump sum so I can prioritize things like a home, for my family, investments, etc.

I've heard good things about having student loans refinanced but also heard that it can come with some disadvantages. Would love to hear if anyone else has gone through the process - if so, how did you do it, what were the pros and cons, and what factors I should consider prior to making that decision.

Thanks!

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Chep

WR Officer

Bitcoin Adoption Specialist

Have about 23K and struggle with this question too. On one hand, the value of a dollar decreases every day, but on the other hand, interest adds up quickly. I'm waiting to see what Biden decides about student loans before I make any decisions, but if you can pay them off it's a good feeling knowing your debt is paid and you don't have to worry about interest.

paddy

WR Officer

Director of Business Development

The waiting game is fun with these politicians since all of them promise forgiveness lol but doesn't seem to ever come through. Pretty sure the last few administrations suggested they were "open to it" but who knows what the hell that means. Good thing is they're being paused right now so definitely a great opportunity to tackle the principle balance without accruing more interest!

JuicyKlay

Celebrated Contributor

I'm in the same boat. Have 20k left of federal student loans at a 4% average interest rate. A few years ago, I switched from a 20 to 10 year payoff plan which will end up saving in the $5k range over the life of the loans. Some days just want to pay everything off and not worry about them anymore but with these crazy Covid times, have decided padding my emergency fund is more important. Also, in the back of my mind, I'm thinking if there ever was a period in US history where some kind widespread federal loan forgiveness happened, it'd be in the next year. At the end of the day, keeping your house and your family is more important then making student loan payments faster.

SammySandbags

Politicker

Account Executive

waiting for Uncle Joe to wave my debt

JuicyKlay

Celebrated Contributor

Seriously! I'd be his biggest fan if he did and could forgive all of the bad speeches and slurs.

BigCheese

Notorious Answer

Agency Recruiter

I'm actually in the same scenario. Glad you posted this.

Lambda

Tycoon

Sales Consultant

I went through this process 10 years ago and just finished paying off! What is your interest rate. It really becomes a question of WHAT you are going to do with the money you save by getting a lower interest rate. Don't overpay LOW interest. Stock market brings in about 7% so if your interest rate is under 6 then you put the money in the stock. If you cant refi and have a high interest rate you pay more money to that since for every payment you make on that debt the more your money is "worth"

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kelun8

Refinancing Student Loans?

7 comments

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