What are your opinions about refinancing student loans with SoFi.com, for a lower interest rate?

Asked by Csgonzalez05

1 Answer

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Answered by Dave Bradley, Investment Manager (Financial Advisor) in North Charleston, SC
Hi,

Lower rates alone aren't an indication of a good benefits and lower payments alone may only fix things in the short term. Have you checked with the firm that currently holds them?

Here is some info on SOFI.com
https://en.wikipedia.org/wiki/SoFi

There are many variables to consider:
Look closely at the APR. The monthly payment on your new loan might be lower, but the interest rate could be higher. This can occur because the loan term might be spread out over more years. Active-duty servicemembers should remember that they might also lose rate benefits on pre-service obligations if they refinance.

Consider the tax consequences. Your new refinanced loan may not be considered a student loan for the purposes of the student loan interest tax deduction. If you regularly claim this deduction, be sure to consider whether the new loan will allow you to continue to do so.
http://www.consumerfinance.gov/blog/should-i-refinance-my-student-loan/

In addition to the above resources, feel free to contact us directly to discuss your situation in greater detail. No obligation

It's not what you make, It's what you keep that determines your lifestyle | 04.15.16 @ 23:32
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$commenter.renderDisplayableName() — {comment} | 12.08.16 @ 06:32
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