Why Would You Consider Refinancing Your Student Loans?
With the average national student debt closing in on $1.2 trillion, and the average student owing about $30,000, it’s clear that student debt is a problem that isn’t going away. With more and more students are taking out loans to pay for school, student debt is a hot topic. Their are many reasons why someone would take a loan for school, but the bottom line is paying back student loans can be overwhelming.
Refinancing student loans provides a variety of options for those looking to for other options to help them get their payments on track. We created a survey to discover why people choose to refinance their student loans.
The survey was completed by 1,000 people and asked the question: “Why would you consider refinancing your student loans?” Below are the responses and their following percentages:
Lower Interest Rates-37.6 percent
Lower Monthly Payments-25.3 percent
Consolidating Into One Payment-16.4 percent
Shorter Loan Term-11.8 percent
Possibility of Having a Co-signer-8.9 percent
The majority of respondents, with 37.6 percent, wanted to refinance their student loans to receive a lower interest rate on their payments. Like debt consolidation, student loan refinancing allows you the opportunity to potentially lower your interest rate, which means less money out of your pocket in the long run.
The next highest response was refinancing student loans for lower monthly payments with 25.3 percent. In some cases you can receive lower monthly payments based on your new interest rate or just by refinancing. Many people are overwhelmed by the amount of money they owe. Lowering monthly payments can help people feel on top of their student debt and get them on track to paying it back.
The least popular response was the possibility of having a co-signer with 8.9 percent. This result was surprising because we thought more people would be interested in co-signing their refinancing to potentially get a lower interest rate or monthly payment.
With student debt becoming more common, more people are looking to refinance their loans than ever. Refinancing student loans allows people to get a better grasp on their debts and start living their life on top of their finances. Our top recommended student debt companies can help you get on top of your debt sooner.