With nearly seven in 10 US college graduates leaving school with student loan debt, it’s no surprise that college loan balances hit an all-time high of $1.4 trillion in 2017. The average student loan debt is just over $34,000, but there’s also a mental cost to student debt. In one survey a full 80 percent of working professionals with student loan debt said it caused them significant or very significant stress.
The stress of student debt can sometimes be alleviated via student loan refinancing. In effect, loan refinancing means taking out a new loan to pay off your old one, which can change how much you owe, your interest rate, or how many payments you’re making every month.
Do I qualify for refinancing?
You’re more likely to qualify for student loan refinancing if you can demonstrate a steady income, low debt and a credit score in the mid-600s or above.
Should I refinance?
If you qualify for student loan refinancing, it’s a smart idea to check out your options with a financial services provider like the Credit Union. Refinancing can lower your payments, reduce your interest rate or consolidate multiple bills into one single monthly payment–saving you money and alleviating some of the stress of student loans.
The Credit Union is here to help you manage your student loan debt. If you or a family member has over $5,000 in student loan debt, refinancing may be a good option.
Find out what your rates and terms would be by completing our quick online application at huecu.org/student-refi.
