Nearly 7 in 10 students who graduated college have student debt, with an average of $28,950 per borrower — sometimes with as many as a dozen loans. When does it make sense to refinance that debt? And what are the advantages?
“When someone graduates and is managing up to 12 or 15 loans, it can be overwhelming — not to mention expensive,” says Mike Rosica, Chief Credit Officer with College Ave Student Loans. Refinancing offers an opportunity to reduce those bills down to a few, even one, plus typically reduces some of the loans’ interest rates. This can lower the overall cost of repaying the loan, as well as free up monthly cash flow. “Cash can be tight, especially when you’re just starting your career,” Rosica says.
Student loan refi FAQ:
When should you refi your student debt?
The first six months after graduating is a great time to start exploring your options, but it’s never too late.
How do I know if refinancing is right for me?
“Sit down with all of your loans, and write out the principal, due date, and interest rates. If the list is long, you are probably a good candidate,” Rosica says.
What are the next steps?
Decide what your goals are. Is it to streamline your bill paying? Free up monthly cash flow? Pay off loans quickly? Then reach out to an expert resource, like College Ave Student Loans where in 3 minutes you can apply and get an instant credit decision. With College Ave Student Loans Refi, customers have the option to pay interest only for the first two years of the loan (as they get on their feet and start their careers), and can choose to repay the loan over the course of 5 to 15 years. College Ave Student Loans also refinances loan amounts as low as $5,000.
Is it ever a bad idea to refinance a student loan?
As long as the new loan meets your goals, and your interest rates are indeed lowered, then private loan refinancing is often a good option. One exception is if you plan to apply for Public Service Loan Forgiveness, a program that erases your remaining federal loan balance after you make 120 qualifying monthly payments while working in a public-sector job. Also, private refinancing federal loans means you give up the original debt’s federal deferment option, which can be granted in times of unemployment and other economic hardship. Other benefits that are unique to federal loans could also apply to you; make sure you understand what those are before you make the decision.
The College Ave Refi Loan has no origination fees and low interest rates, with fixed rates of 4.74% to 8.5% APR and variable rates of 2.5%to 7.25% APR (all rates shown include auto-pay discount) for qualified graduates. To learn more, visit: https://collegeavestudentloans.com.
This post is created in partnership with College Ave Student Loans, which has an A rating from the Better Business Bureau.