Refinancing

Student Loan Refinance Assistance

refinancing

If you are finding it difficult to satisfy your student loan debt obligation with the existing terms, you are not alone.  Over the past 33 years, tuition for higher education has tripled at both public and private four-year universities.  Community college tuition has doubled.  The combination of high-priced tuition mixed with increasing interest rates, late fees and other financial penalties make it almost impossible for the average borrower to pay off student loans as originally agreed.

Congress eliminated the possibility for borrowers to discharge student loans through bankruptcy back in 2005.  Over the past ten years, the average student loan debt has increased by more than 50% and the default rate only continues to grow.  There are several factors as to why borrowers are defaulting on student loans.  Below are just some of the reasons:

  • Recent college graduates are having difficulty finding work within an adequate amount of time to meet their initial loan payments.
  • A high unemployment rate continues to plague our Nation making it difficult for even the most educated job searchers to find work.
  • Borrowers who attended for-profit schools are now realizing the high costs associated with their preeminent education and struggling to meet the monthly payment demands.
  • College drop-outs find it even more frustrating to pay off student loans without a college degree.   A high population of borrowers who did not finish school are also unemployed or earning a modest income limiting their ability to make payments on a student loan.

How to Refinance Federal Student Loans

Student loan refinancing programs help borrowers to modify their loans based on their ability to repay them.  For those who have more than one student loan, combining multiple student loans into one new consolidated loan is extremely helpful.

A replacement loan generally extends the repayment period, guarantees a lower, fixed interest rate and often significantly reduces the monthly payment.  An income-based repayment program is a good choice for refinancing student loans that are high in amount.

Obtaining financial relief for student loans typically takes about four to six weeks.  Don’t be intimidated by the amount of debt you owe.  Our consultants are familiar with several student loan refinancing and forgiveness programs to help restructure your student loans. The loan refinance rate generally encompasses several predetermining factors such as your credit history and the lender.

Refinancing Loans After Graduation

For those college students who are getting ready to graduate or who have recently graduated, you also have the option to reduce your monthly payments by extending the length of your loan.  Extending a loan can be incredibly beneficial if your monthly payments are high.

Refinancing student loans after graduation is a monumental step in getting a better interest rate.  However, keep in mind the option of loan consolidation can generally only be done once. Nonetheless, refinancing student loans to acquire a lower interest rate provides the opportunity to lower long-term debt.

We are ready to get your finances back into shape!