Higher education offers a myriad of advantages to the students who opt for it. By deciding to go for an undergraduate degree or beyond, you’re able to secure a high-paying job, greater opportunities for growth within the workplace, personal growth, and a network of professional connections.
With continually-increasing rates of college completion among men and women in America, it’s evident that the benefits of opting for a college degree aren’t forgotten.
However, a college degree isn’t just about spending 4 years in an amazing, diverse environment and learning from some of the most brilliant people in academia. The personal and professional growth that is a token of a college education come with a price tag—and a very hefty one indeed!
College affordability is an oft-discussed issue in America, with higher education costs continually increasing over the years. In fact, a 10-year review of college fees revealed that tuition increased by the greatest percentage—a whopping 63%—compared to other college costs.
We live in a world where middle and low-income students—the ones that constitute a large percentage of the American student population—can’t afford 95 percent of the colleges in the country.
Students look to various financing options to make their college dreams a reality. From applying for scholarships and grants to student loans and assistantships, students are looking for the most cost-effective ways to finance their education.
For many, student loans offer the most viable option. These education loans don’t require information on your credit history, offer fixed interest rates, and can present a quick-fix to your financial problem. However, any of the 45 million Americans struggling with crushing student debt will tell you of the woes of repaying your student debt.
Sure, a student loan will enable you to get the quality education you seek from a college of your choice. An unforeseen outcome, though, is that you might be left scrambling to repay the high-interest loan for almost two decades after you’ve graduated!
This is where refinancing helps.
By working with a credible private lender who’ll pay off your student loan and replace it with a more feasible one, you can forego many of the problems that come with student borrowing.
Let’s take a look at some of the reasons why refinancing your student loan with ELFI is the right choice for you.
You Can Save Money
Depending on the type of loan you opt for—federal or private—you’ll be liable to pay a certain fixed or variable interest on the loan. While it’s true that student loans offer a convenient means of covering your college expenses, it’s important to note that this alternative does cost you more.
If, for instance, you’re paying for your college’s costs upfront, you’ll only have to pay the principal amount. With student loans, you’ll have to repay the principal amount with interest added to it. This can potentially drive up the cost by tens of thousands of dollars.
By choosing student loan refinancing, you stand to save a considerable amount of money. Why? Private lenders who offer refinancing usually offer lower interest rates and don’t demand a prepayment fee.
The lower monthly installment and interest rate save you a lot of money—about $20,000—in the long run.
Various private lenders offer different payment plans that you can opt for depending on your future financial prospects and preferences. When you replace your existing loan with a new one, you can work out a repayment schedule, new interest rate, and terms of repayment mutually.
According to Forbes, a student loan can take up to 18.5 years to completely pay off. On the other hand, opting for a student loan refinancing program will help you choose a flexible timeframe between 5 to 20 years.
Many private lenders are also more accommodating of changes in your circumstances, allowing you to pause your payments or change the terms that suit both parties involved.
You Can Refinance Often
Instead of being stuck with the repayment plan you agreed to when you first graduated, this alternative gives you the option to refinance your loans several times. Since refinancing student loans doesn’t incur a prepayment or origination cost, you can do it several times to avail the most benefit from it.
As you settle into a new career and have a firmer financial footing, your finances and credit history will improve. Refinancing your loan again will help you reap the benefits of your improved financial standing and continue to save you more money as you find lower interest rates.
Refinancing your student loans can help you get lower monthly payments, save thousands of dollars, and offer greater flexibility in the repayment process. By working with a credible private lender, you can relieve the burden of student debt with a custom repayment plan that works best for you!