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There are far fewer people between the ages of 50 and 61 who still have student loan debt compared to younger age groups, but those who have high average balances.
According to statistics U.S. Department of Education As of Q4 2020, borrowers in this age group have an average balance of USD 42,290.32, which is almost the same as the highest average debt burden of USD 42,373.23 carried by the lowest age group (from 35 to 49 years old).
But while these two age groups, 35 to 49 and 50 to 61, have a similar average balance, the number of borrowers in general declines sharply after age 49. There are only 6.2 million borrowers in the older age group, compared to 14.2 million borrowers in the younger age group.
The numbers illustrate a scenario where borrowers are at opposite ends of the spectrum. There are those who have fully paid off their student loans by age 50, as evidenced by a large decline in the number of borrowers, as well as those who still have a good chunk of debt to pay off with all the interest accrued over most of their adult years. – as evidenced by the high average debt balance.
The data also takes into account borrower parents who took out student loans on their behalf to help fund their children’s college education.
Are you paying off your student loans or managing parental loans PLUS if you borrowed for your child, refinancing through a private lender can help you get rid of debt once and for all.
Considering that by age 50 you probably have had loans for many years, you may have refinanced many times already. The good news is that you can refinance your student loans as many times as you like. You can also take advantage of your age: if you have kept a history of timely loan payments all these years, you may have a higher credit rating and it will be more convenient for you to apply for a lower interest rate.
Before refinancing: Due to ongoing federal student loan payments and the interest freeze, we do not recommend that you consider refinancing any federal or parent PLUS loans until the grace period expires on September 30, 2021. Federal loan refinancing eliminates all unique government protections such as deferral and abstinence, income repayment plans, forgiveness programs, and widespread student loan cancellation…
Although interest rates remain low, now is a good time to lock in a lower refinancing rate on your private student loans before rising inflation forces rates to rise again, which is predicted to happen in end of 2022…
To secure a low rate today, you should choose a refinancing lender that offers fixed interest rates. To choose analyzed and compared private student loan financing from national banks, credit unions and online lenders to evaluate your best options. All companies on our list of the best offer a choice of variable and fixed interest refinancing rates, as well as low refinancing rates, flexible loan terms, no refinancing fees or early repayment penalties, and financial hardship protection. Read more about our methodology for selecting the best student loan refinancing companies below.
Refinancing at a fixed rate versus a variable rate means that you will pay the same low interest rate for the remainder of the loan term. It is even more beneficial for your wallet if your salary matches the rate of future inflation growth, so you earn more and receive less interest. If you choose a variable rate refinancing loan, its rates may change. When inflation is likely causing rates to rise, variable rate student loans will also carry higher interest rates.
To determine which student loan refinancing companies are the best for borrowers, To choose analyzed and compared financing of private student loans from national banks, credit unions and online lenders. We’ve narrowed our ranking to only those that offer low student loan refinancing rates and pre-qualification tools that won’t hurt your credit history.
While the companies we have selected in this article consistently rank among the most competitive in terms of refinancing rates, we also compared each company for the following characteristics:
- Wide availability: All of the companies on our list refinance both federal and private student loans, and each offers a choice of variable and fixed interest rates.
- Flexible loan conditions: Each company provides a variety of funding options that you can customize based on your monthly budget and student loan repayment duration.
- No commission for creation or registration: None of the companies on our list charge borrowers an upfront “fee” to refinance your loan.
- No penalties for early payment: Companies on our list do not charge borrowers for early repayment of the loan.
- Streamlined application process: We made sure that companies offer a fast online application process.
- Joint signature options: Every company on our list allows for co-signing unless the direct borrower is eligible for refinancing on its own.
- Auto payment discounts: All listed companies already take into account auto payment discounts in their advertised rates.
- Private student loan protection: Although you lose your federal student loan benefits when you refinance, each company on our list offers borrowers some type of protection against financial hardship.
- Loan size: The aforementioned companies refinance loans of various sizes – from $ 5,000 to $ 500,000. Each company advertises appropriate loan sizes, and completing the pre-approval process can give you an idea of your interest rate and monthly payment.
- Credit Requirements / Eligibility: We took into account the minimum credit rating and the required income level, if this information were available.
- Support: Each company on our list provides customer service by phone, email, or secure online messaging. We have also selected lenders with an online resource center or advisory center to help you learn more about the student loan refinancing process.
After reviewing the aforementioned features, we have sorted our recommendations on the most suitable refinancing for general needs, having a co-signer, applying with a fair credit score, refinancing parental and medical school loans.
Please note that the rates and commission structure for refinancing private student loans are not guaranteed forever; they are subject to change without notice and often fluctuate in line with the Fed’s rate. Choosing an annual interest rate with a fixed rate when refinancing will ensure that your interest rate and monthly payment remain the same throughout the life of the loan.
Your refinancing rate depends on your credit rating, income, debt-to-income ratio (DTI), savings, payment history, and overall financial condition. To refinance your student loan (s), lenders will run a hard loan request and ask for a full application, which may require proof of income, proof of identity, proof of address, etc.
Editorial note: The opinions, analyzes, reviews or recommendations expressed in this article are solely owned by the Select editors and have not been reviewed, endorsed or otherwise endorsed by any third party.