Right now, the collective student loan debt in this country adds up to more than $1 trillion. That is a staggering sum. And while each individual student in America only owes a tiny slice of that $1 trillion, even a relatively small burden of student loan debt can quickly become unmanageable.
Whether you owe $100,000 or $1,000, you may have crippling monthly bills you cannot afford.
The problem with student loan debt is that there is only so much you can do to defer it or negate it. Most student loan debt isn’t eligible for forgiveness, which means you are stuck paying it back sooner or later.
Depending on what happens with the next presidential election, there could be some positive changes forthcoming, but most graduates cannot afford to wait.
If you are in this situation, there are a number of steps you can take to get your situation under control. One of those steps is to refinance your student loans.
You do need good credit to do this. Even a few years ago, it would have been hard to find an opportunity to refinance student loans, but it is a practice which is swiftly moving into the mainstream thanks to the growth of Financial Technology (FinTech) companies such as SoFi.
Interested in refinancing but not sure where to start your search? Here are some of the top FinTech companies to consider!
As the name indicates, this is a company which specializes specifically in student loans. On their site, you can upload information about your loan and receive tailored recommendations and billing reminders. The site provides you with a number of useful tools and calculators which you can use to manage your money.
Like Student Loan Hero, MagnifyMoney is a website that allows you to hunt for the best deals on refinancing your student loans. Neither of these sites actually offer refinancing directly, but they can help you to find the lowest interest rates.
This website is structured as a marketplace which offers student loan refinancing. There are numerous participants in the marketplace—some are banks, others are credit unions, still others are community lenders. Because the marketplace is competitive, LendKey is able to offer some of the lowest rates around.
SoFi is probably the best known company to offer student loan refinancing right now. On their site, you can shop not only for a refinance on your student loan, but for a mortgage or personal loan as well.
The company is well known for their low interest rates as well as their excellent service. You do need excellent credit to qualify. To learn more, check out this SoFi review.
Have a limited credit history? If so, you probably know that a lot of companies will not even consider working with you. Unfortunately, limited credit is simply the norm for many recent graduates.
Earnest is a FinTech company that focuses on your future potential instead of your past. Essentially, they look at what you are doing now and try to project what your career and finances may look like over the coming years. They then make a decision whether to refinance your loan based on that.
If you are a recent graduate, you have entered into a tough economy. While things are not as rough as they were a few years ago, most graduates will still struggle to pull in a comfortable living wage.
Trying to juggle student loans on top of that can be overwhelming.
Thankfully FinTech companies like SoFi are changing the landscape of student loans. With one of these refinancing programs on your side, you may soon finally be able to afford your monthly bills.