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Only 10% of eligible borrowers refinance student loans despite potential savings. What’s stopping them?
Just 10% of eligible borrowers refinance student loans despite potential savings of over $12,000, hindered by confusion and uncertainty about the process, analysts say.
- Earnest's analysis shows only 1 in 10 eligible borrowers refinance despite potential savings, while experts urge borrowers with student loans to review options as return to repayment begins.
- Policy shifts such as payment pauses, legal fights and plan changes in recent years created borrower uncertainty, including the Federal loan payment pause and legal battles over federal loan forgiveness .
- Checking rate quotes takes minutes with no credit impact, and online applications simplify refinancing, which replaces an existing loan; analyses use a $100,000 loan example to show potential savings.
- Before refinancing, borrowers should double-check whether they qualify for federal benefits like Public Service Loan Forgiveness, since about 800,000 borrowers have received PSLF-related relief and refinancing into private loans means losing these benefits.
- With the Federal Reserve signaling further cuts, refinancing may become more attractive, but borrowers weighing refinancing face costs from paying more interest and juggling confusing loan terms.
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30 Articles
Helena Independent Record+28 Reposted by 28 other sources
Only 10% of eligible borrowers refinance student loans despite potential savings. What’s stopping them?
Earnest reports only 10% of eligible borrowers refinance student loans, missing potential savings due to confusion and uncertainty.
·Helena, United States
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Total News Sources30
Leaning Left1Leaning Right1Center24Last UpdatedBias Distribution92% Center
Bias Distribution
- 92% of the sources are Center
92% Center
C 92%
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