Private Student Loan Debt: Refinancing & Cutting Interest During Challenging Times
As student loan debt continues to take on a life of its own as an ever-growing issue—and one that has developed into a nationwide crisis—it is easy to forget how it occurs: because individuals in the US want to get educated so they can work. As the system continues to backfire with many young borrowers strapped down to average payments of $400 a month, students exiting school have been faced with grim financial reality. This is especially true if they have been over-sold by colleges touting programs that yield high-income careers and opportunities for jobs right away.
If you are one of the over 45 million borrowers chipping away at that $1.64 trillion cumulative student loan debt, you may be wondering how to sustain paying off your education over the long run—and especially if you have been affected by the COVID-19 pandemic. You may have been sick or had to take care of a family member, and difficult times may have been exacerbated by the loss of your job or a significant cut in hours.
For most Americans, this is not a time to take on more expenses or financial responsibility as the future is punctuated by a large question mark. It is, however, an excellent time to get your finances into better order. Depending on your situation, refinancing may be a good idea for your private student loans. With interest rates continuing to fall for private student loans, that average fixed rate of around 10 percent or more may start to chafe. You may be surprised to learn that your financial picture does not have to be perfect to refinance, and doing so will certainly improve the view over the long run.
Refinancing offers a host of benefits. Aside from reducing interest rates, you may also be able to combine your federal and private loans into one debt. Feasibly, you could save tens of thousands of dollars by the time your debt is paid off, and with a refinance, you may be able to set up a new payment plan during your refinance, allowing you to pay off your debt must faster. If your credit is not quite up to snuff, a co-signer may make the process easier. This is often a parent or close relative who wants to help you succeed, and understands the implications of co-signing—meaning that if you default, they will be responsible for paying off the debt.
Have you experienced problems with your loan service provider or student loan program, or are you in danger of defaulting on your student loan? Contact Fitzgerald & Campbell, APLC now so one of our experienced student loan debt attorneys can review your case and discuss all the available options with you. Our attorneys have decades of experience in serving clients as they navigate through challenging financial situations, to include student loan issues, bankruptcy, and other debt management processes. We are here to help! Click here to schedule a free 30-minute consultation, call us at (855) 709-5788, or email us at firstname.lastname@example.org.
Posted in: Student Loan Debt