Lessen the Burden of Your Student Loans

Lessen the Burden of Your Student Loans

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Debt can be debilitating. What’s worse is that most people graduating college today will come out with some form of debt. Of course there are exceptions to the norm, and those of you that graduated college without student loans you should consider yourself extremely lucky! My sister-in-law is graduating in a few weeks and will be attending graduate school, so it got me thinking about student loan debt. After doing some research, I was astonished to see that the average 2016 graduate (of college) has more than ~$37,000 in student loan debt (per CNN). In fact, Americans now owe over $1.4 TRILLION in student loan debt spread across more than 44 million people (again, per CNN). I was, and still am, shocked by these numbers; however, I was happy to find a company that is looking to help: LendEDU.

What Is It?

For those of you who are in college and have student loan debt, or those of you who are graduating with debt, or those of you have graduated and have debt, okay you get the point….anyone with student loan debt, this is for you. LendEDU can help you save some serious money at any stage of your life. LendEDU allows you to get multiple quotes on student loans, whether you’re looking for a private student loan OR refinancing your current student loans, and even provides quotes for personal loans and credit cards. Once you have those quotes, you can then compare them to your current rate to see if the rates provided by LendEDU are lower than the rate you are currently paying. If they are, you can start thinking about refinancing those student loans. For example, if you currently have $50,000 in student loan debt at a rate of 6% over a 10 year term, you will be shelling out around $555 dollar a month! Now, what happens if you could refinance those loans down to a rate of 4.0%, you would save yourself $49 dollars a month and have a monthly payment of $506. That results in savings of $5,880!

How Does It Work?

Using LendEDU is extremely simple! Step 1: go to LendEDU.com and complete a form which asks you questions to determine the type of rates they can offer you. Once you have filled out the form and submitted it, the site will generate a number of different interest quotes for you to analyze. You can receive quotes from up to 12 different lenders so you have a wide range to choose from. The whole process to complete the form and receive the quotes takes ~90 seconds (yes, that’s right 90 seconds). Step 2: compare those rates to the current rates on your loans and see if there are any that beat your current rate. Step 3: if so, then you can take the next steps and consider refinancing those loans to the lower rate. Refinancing to a lower rate will save you money because you will end up paying less interest over the life of the loan, see the example above.

I Can’t

Many people that have student loan debt think that they can’t refinance. They come up with a number of different reasons. A couple common responses I’ve heard;

  1. It’s too hard
  2. I have federal and private loans
  3. I have no time
  4. I don’t know how
  5. I already refinanced once when I graduated

While these all seem like plausible excuses, they can all easily be rebutted.

1) If you can get a quote from LendEDU in 90 seconds, it can’t be that hard. LendEDU makes it extremely simple to get quotes for rates and, if you find a rate you like, they are there to help you each step of the way. Plus, see number 4 below, which gives another reason why it truly isn’t that difficult.

2) I have multiple types of student loans is also not a good excuse because you can consolidate and refinance your student loans at the same time. LendEDU can help you here, as well. When you refinance your student loan debt you can choose which loans you would like to refinance and consolidate them together.

3) Let’s be serious; anyone and everyone can find 90 seconds of time and what better way to use that time than to try to save yourself some money?

4) Fine, you don’t know how. BUT there is an infinite amount of information out there on the internet that can help you. On LendEDU’s website alone there are FAQ, blogs, articles and news that you can read to help learn and understand how refinancing to a lower rate can help you in the long run.

5) Did you know you can refinance your loans multiple times? No? Well, now you do! If you refinanced when you first graduated college from a rate of 8% to 6% and you have the opportunity to refinance again to 4%, why would you forgo saving yourself some money?

So there you go, all 5 arguments invalidated!

Don’t Wait

Don’t wait to see if you can refinance. Many people just assume that rising interest rates will only affect mortgages, but that’s not true. Rising interest rates can affect many things, one of them is student loans. While they may not rise dramatically over the next year, they will rise over time and every percentage point counts when you are trying to save money. So, I encourage you to take 90 seconds out of your day and see if LendEDU can help you save money!

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9 thoughts on “Lessen the Burden of Your Student Loans

  1. I have double the average amount of student debt listed. I definitely feel like I will never get out of the student debt hole. I have consolidated before, but I wasn’t allowed to combine my government and private loans at the time. I haven’t looked into refinancing in many years.

    My main concern is at least for my federal loan, I have an income based repayment plan and if consolidating/refinancing with my private loan, that would probably go way and make repayment impossible.

    1. P.S. I did try the LendEDU thing… it WAS really easy to get a quote in about a minute. Unfortunately, they said there were no offers for me, but did say I could try SOFI… which listed rates and monthly payments more than I could afford. : (

      Thanks for listing this place to try, though!

        1. Absolutely Troy! It’s a business. Colleges can get people to pay that much, so they just charge that much. And it gets more expensive every single year!

      1. I’m sorry LendEDU wasn’t any help to you and I’m sorry you’re dealing with crippling student loan debt :(.

        It sounds like you’ve got a decent setup with income based payments for your federal student loans, though. Although it feels like you’ll never get your loans paid off, I’m sure you will.

        One of the next presidents will have to address this issue because it truly is a nationwide crisis at this point.

  2. Student loan debt sucks. Right when you graduate college and are trying to start your life, you get an email that says you owe $800 a month. But you only make $2,000 a month after taxes (if you’re lucky). You’ve still gotta pay for rent and food. You can kiss your savings and investment needs goodbye. It is crippling, and destroying a generation.

    Thank you for the tips, I hope this helps someone. I paid off my student loans off as aggressively as possible so they’re gone. But I wouldn’t have been able to do it if I didn’t start with a high salary and lived in my frat house basement for a year.

    1. Good for you!! You bring up a great point. It is possible to pay off your student loans quickly, but you really have to sacrifice a whole lot to do so and if you’re in a low-paying field, that’s tough even WITH sacrifices.

      It’s hard because after graduating college, people want to do things like get married and buy a house, but student loan debt really makes it difficult to do that. It really is sad.

  3. The numbers you presented are insane, but I wouldn’t say surprising. So many good schools out there and they are all competing, just like a business. The app seems like a good tool. It can also help students understand about rate differences to help them prepare for the future when they decide to purchase a car or a home!

    1. Yes there really are so many good schools, but the unfortunate part is that so many people automatically assume more expensive = better education and that’s just not always the case. It s true, though, colleges are just like a business.

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