Great news today on the ability of students to refinance their loans! Have read through everything. My question is this: I own my home free & clear. I’m 60 years old, and contribute a good amount to my retirement account. Does it make sense for me to refinance my home, and allow my child to repay her very large medical school debt to me? She is employed. If the “average” interest of the companies offering to refinance the student debt are 3.25%, I could do that too with a home refi. Thank you.
Terry Says: Your question doesn’t make sense to me! What is clear is that your daughter should go to www.SoFi.com and refinance her med school debts at a much lower rate — She will be eligible, especially if she has a good income! And she can have the satisfaction of paying off the loans and saving a lot of interest.
And you should stay out of her life, keep saving for your own retirement — and don’t mortgage your home just before retirement!!