Graduates who have a well-paid job, a high credit score and an average amount of student loan debt may believe they can easily refinance that debt to take advantage of lower interest rates. However, they may find to their surprise that their refinancing applications are denied. More and more graduates are finding that without a co-signer, they simply can't get approval, even if the lender is one of the largest student loan refinancers in the U.S.
What does it take to be approved? Despite the fact that many students are looking to refinance and that the student loan refinance industry is booming at the moment, many who need the cut in monthly loan payments will be denied. To qualify, one needs to have outstanding credit and a job that pays above average. Even then, many will need to have their parents co-sign.
Some financial experts suggest that these loan refinancing companies are looking for sure bets for themselves, rather than to help graduates struggling with large debts. Adam Minsky, a lawyer specializing in issues related to student loans, went as far as saying that the people who most need help with their loans are the ones who will not get it. Instead, those who qualify to refinance are often those who already have a steady income and can make their current higher payments.
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