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Read this article if you’ve heard about refinancing but you think it’s too good to be true. Estimated read time ~4 min.
So you’ve heard about refinancing and you’re pretty sure it’s a super scam. Either you’re going to get your identity stolen Haha suckers, you can have my negative net worth! or you’re pretty sure you’ll lose some major federal benefit you need and get effed bad! Like c’mon what if someone like Bernie Sanders comes in and wipes the slate clean… then what?! Although I can’t be sure about a glorious white knight saving our country from student debt I can guide you to legitimate companies and help you avoid a scam and make sure you only refinance if it’s the right choice for you.
Red Flags
Any company that charges a fee for applying to refinance or actually refinancing your loan. There is never a fee for refinancing your student loans. If you see one it’s a scam.
Get What You Need
Make sure you get what you want out of the deal, that’s why you’re refinancing in the first place, for your own benefit! I have a full post on this topic you can read here. But here’s the quick list.
- If you’re counting on loan forgiveness then refinancing is not for you. It will make you ineligible for most types of loan forgiveness.
- Do you need loan forgiveness if you die or do you have enough life insurance to cover your debt? Some refinancing companies offer forgiveness some don’t.
- Do you need flexible monthly payments? If so refinancing may not be your best choice. The federal government has the most flexible payment options.
- Do you need periods of forbearance (i.e. paused payments but interest still accumulates)? Some refinancing companies offer forbearance and some don’t.
Legit Companies
Here’s a list of vetted companies. Some of the links are referral links which means I’ll get paid and you will too if you use that link and end up refinancing your loans.
Earnest Perks: $200 for you and $200 for me.
RISLA Perks: none
Laurel Road Perks: $250 for you and $250 for me.
SoFi Perks: $100 for you and $300 for me.
CommonBond Perks: $0 for you and $250 for me.
Elfi Perks: $100 for you and $400 for me.
So what’s holding you back from refinancing? What keeps you wondering if it’s the right choice for you? Leave a comment below or post on the Repayable Facebook Page. I’m here to help you make the smartest choice for your financial situation.
Additional Resources
How to Choose the Student Loan Benefits You Need
Sign-up for to get the Refinancing Master List as soon as it’s ready!
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