According to a report by the Federal Reserve Bank of New York, outstanding student loan debt has risen to $1.59 trillion in just the first quarter of 2022, with a $14 billion increase from the 4th quarter of 2021. Student debt loans are currently the second-highest category of consumer loans, with home mortgages being the first.
This news is quite surprising considering that the Biden administration is considering paying off $10,000 in federal student debt forgiveness, and even extending the federal student loan payment forbearance till August 31st.
While applying for student loans might be the only option for some students, there’s a way you can pay down yours easily, and save yourself the financial burden of paying high amounts in interest.
If you do not qualify for any of the student loan debt forgiveness schemes, there are easy ways to still pay your student loans. One trick to paying down student loan debts is learning how to refinance your student loans. For students with public student loans, it is often a great idea to keep your loans within the federal student system for the meantime.
Most public student loans come with a 0% interest rate, so it may be a good idea to pay these public student loans down, so that the bulk of your funds go into the principal, rather than paying heavily for interest.
In a situation where you have amassed a large amount in interest payments, you may need to aggressively work towards refinancing your student loans. There are different student loan refinancing services to help you pay down your debt easily. All that is required is finding a suitable repayment plan and rate, and paying down your student loans becomes a lot easier. Some of these include:
1. SoFi Student Loan Refinancing
SoFi doesn’t require any origination fee for a refinancing plan. Some of the eligible loans available include Federal, private, graduate, and undergraduate student loans. You can also access parent PLUS loans, dental residency, and medical loans. These loans are usually in a variable and fixed form. For fixed rates, it is between 2.99%; from 3.12% for medical/dental residents including a 0.25% autopay discount. You can opt for the variable rate which is between 2.24%; from 2.37% for medical/dental residents and also includes a 0.25% autopay discount. Both loan types have between 5, 7, 10, 15 to even 20 years. To learn more about SoFi Student Loan Refinancing, you can check out their site at SoFi Student Loan Refinancing
2. Laurel Road Student Loan Refinancing
Just like SoFi, you do not need origination fees to get a refinancing plan. They have refinancing plans for loans like federal, private, graduate, and undergraduate loans, Parent PLUS loans, medical and dental residency/fellowship loans, including a special pricing and lower rates for healthcare professionals. These loan types are also in variable and fixed forms. These loan terms are often between five to twenty years. To learn more about this student refinancing service, you can check out their website Lauren Road for more details on how to restructure and save thousands of dollars on student debts.
With the high rate of student loan debts, it may seem impossible for you to pay off those accruing debts, but there’s actually a solution. All you need is to strategize or refinance that student loan debt, and you can pay off your debts and save money for other future expenses.