Ask Terry Questions Refinancing a private student loan

Refinancing a private student loan

By Terry Savage on February 20, 2023 | College Savings / Student Loans

Hello Terry,
Thank you for taking my question, first off. My question has to do with refinancing a private student loan with a principal somewhere in the neighborhood of 30,000 dollars. It’s a loan that my wife took out about 15 years ago that hasn’t moved and in fact has ballooned because the interest rate is variable. I think the interest rate is in between 8 and 9 percent at the moment. Do you know of any reputable companies that will refinance on this type of loan to help us get out from underwater here?

Terry Says

Yes, and I’ll give you two places to start looking. BUT, if this is HER loan, she has to have very good credit and income to do a refi. There is no incentive for lenders to refinance these high rate loans! Do you have some savings you could put toward the refi, to lower the amount due? Do you own a home, and could you take out a lower rate home equity loan.

Here’s where to go to look for a refi of a private student loan:
https://www.sofi.com/
https://www.credible.com/

It will be great to get out from under this burden.

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