Recent college grad- Private Student Loan Refinance

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills.
Post Reply
Topic Author
jpogo1
Posts: 11
Joined: Wed May 27, 2020 9:45 pm

Recent college grad- Private Student Loan Refinance

Post by jpogo1 »

Hello everyone,

Have a question regarding private student loan refinancing for recent college graduates.

I just graduated in May with $60k of Private student loan debt thru DISCOVER that has a 10% interest rate. I am living at home with my parents and am saving 75% of my income which will result in me being debt free by December 2022.

Here is my question:

So-FI rejected my refinance request because my debt to income ratio is too high even with a cosigner. What other lenders besides So-FI will help recent college graduates refinance their private loans? Paying 10% is outrageous in a low interest rate environment.

Thanks!
Wings5
Posts: 331
Joined: Sun Nov 16, 2014 4:17 pm

Re: Recent college grad- Private Student Loan Refinance

Post by Wings5 »

Hello,

Are you saving 75% or putting it all towards your student loan debt payments? Either way you’ve built awesome forward momentum.

If your income is around or less than your $60k debt it may be pretty difficult to refinance to a lower rate. Even in a low-interest market there are plenty of niches charging exorbitant rates.

We were in a similar situation with significant student loan debt. Hated it and understand the frustration; our solution was similar to what you’re doing. It will end a lot sooner than you think! Keep up the good work!

These lenders may help:

https://www.nerdwallet.com/best/loans/s ... -co-signer
“Spending money to show people how much money you have is the fastest way to have less money.” - Morgan Housel
jwfails
Posts: 115
Joined: Mon Oct 26, 2015 7:49 am
Location: Texas

Re: Recent college grad- Private Student Loan Refinance

Post by jwfails »

My daughter graduated 2 years ago and her employer partners with a company that refinances new employees student loans. I think she consolidated hers and got a rate around 4%.

Check with your employer.
Minty
Posts: 713
Joined: Sun Mar 24, 2013 3:19 pm
Location: NorCal

Re: Recent college grad- Private Student Loan Refinance

Post by Minty »

With this kind of interest rate and cash flow, I would consider a credit card low-interest balance transfer offer.
Core Four w/ nominal bonds & TIPS. Refi Rampage: Purchase: 3.875% 30 -> R1 3% 20 -> R2 2.375% 15 -> R3 1.99% 15 -> R4 1.875% 15
Post Reply