Student loan refinance
Hi Terry. We would like to refinance our sons student loan. Do you have any recommendations?
Thank you.
Terry Says
That’s a pretty wide-open question. Is it a Federal student loan or a private loan that you cosigned?
Don’t refi a Federal student loan; you lose lots of flexibility and options. You might give him some money every month to pay down his Federal student loan faster.
But, the best assumption I can make is that you co-signed his loan at a place like Sallie Mae. Those private lenders typically don’t refinance — because they know you are in the trap! If you can do a refi on your home, you could pay down the loan balance. (The interest on the money you use to repay the student loan is not tax-deductible mortgage interest). But it would likely be at a lower rate.
If these are your son’s private loans, check out places like SOFI.com or Credible.com.
