Refinance Parent Plus loan to private
I am paying a parent plus loan that seems to be never ending and I really want to refinance with SoFi but am nervous about loosing government protections. At the end of the day I dont want to pay on this loan for 20 more years when I can refinance down to a 10 or 12 and make the same payment. The payment is doable, not great but doable, just dont seem to be getting anywhere and Ill be 76 in 20 years! Best investment I ever made in my child who is doing incredibly well and held up his end getting out in four years and living his best life so Im holding up my end.
Thank you
Terry Says
Wow, you’re 76 years old and still paying on your child’s college loan?! I think the first place to start is by letting your child who is “doing incredibly well” what a burden you’re carrying. Perhaps it’s time for him or her to pay an equal amount each month as you do — to get this thing over with much faster!
At this point, you don’t have very much of a benefit from the fact that it is a Federal loan. You could ask for an “income contingent” payment (presuming your income is much lower now), but the interest will still accrue — making the ultimate burden even worse. If you default, they will surely ding your Social Security check (they’ve already started doing that to seniors). And if you die with the loan outstanding, I’m not sure whether they will sue your estate. It’s an issue that might come up in the future.
Refinancing at SoFI (or searching for a refi through Credible.com) is a great opportunity for graduates who now have an income. SoFi will give them a much lower rate than their student loans. But the catch is to refi you need to have income and good credit. Not sure where you stand on both counts at your age.
The only other choice is to refi your mortgage (presuming you own your own home) because you’ll surely get a much lower rate. The interest won’t be deductible, but you’ll wipe out the high-rate parental loan debt.
Please discuss this with your child. I’m sure she/he is grateful. And I think my suggestion in the first paragraph is the most equitable and do-able.
