A survey conducted by Google Consumer Surveys, on behalf of Student Loan Hero, reveals that many millennials with student loans have decided not to refinance their loans despite the fact that they may be able to secure lower interest rates. The poll, conducted between June 30 and July 3, 2016, surveyed 1,001 individuals with student loans. Almost 62 percent of respondents said they knew about the options to refinance their student loans, but over two-thirds of these had not refinanced.
The reasons why these former students made the decision not to refinance varies:
- The largest group, making up about 25 percent of the respondents, said they were aware that it was possible to refinance student loans but that they did not know how to do so.
- Just over 20 percent of the respondents were aware of the refinance options, but did not want to lose the different repayment choices offered by federal student loans. The most popular of these was the option to be on an income-based repayment plan.
- A small number (8.4 percent) responded that they planned to make use of one of the student loan forgiveness programs available to those who work in qualifying positions in the nonprofit or education sector for ten years.
- Two percent said that they had applied for refinancing but had been rejected.
About a third of respondents who said they were aware of refinancing, gave no reason why they were not interested.
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