3 Things To Consider Before Refinancing Student Loan Debt

 

Having your college days behind you can be a great feeling, but managing your student loan debt can be harder than expected. Post college life can include expenses you didn’t realize would be there, so not paying anymore than absolutely necessary on your student loan debt can really help.

Refinancing your loans should be a slam-dunk, but there can be things that could make you not so attractive to a potential lender. There are a few things you should consider before talking to lenders to be sure you’re ready.

1. Do You Earn Enough – Lenders may have specific requirements around how much you bring in each year to be eligible for a student loan refinance.

2. Is Your Credit Score Too Low – Having a low credit score never helps when trying to finance anything, and the same is true with student loans. You may need to get your credit back on track before exploring a student loan refinance or consolidation.

3. Is Your Debt-To-Income Ratio Too High – Companies that lend money almost always look at your debt-to-income ratio as a sign of potential financial problems. If you have taken on more debt than you maybe should have, lenders may not want to give you money. Basically, if your monthly expenses are too high compared to your income, then that makes lenders less likely to lend to you.

If you don’t feel like you may be the best candidate, you could still have an option. Getting a co-signer or co-applicant (usually a parent or close relative) that is a better financial situation can do the trick. This person will be accepting responsibility for your loans if for some reason you don’t pay, so it’s not something to take lightly.

After considering these three factors you feel like you are in a good place, then exploring student loan refinancing or student debt consolidation could be a great way to save some money each month.

Refinancing Student Loan Debt

 

There’s nothing more gratifying than finishing college and moving onto the next phase of your life, but paying high rate student loans can be hard to deal with month after month.

Refinancing student debt into a lower rate loan can help lessen the pressure that comes with making payments and save you a lot of money over the life of the repayment period.

In order to refinance or consolidate your student loans you must have a credit score in the mid-600’s or higher and a consistent income, or have someone that can co-sign on the loan with you.

To learn more about refinancing your student debt, visit a reputable lender or www.studentloans.gov