Tag: student loans study

College Funding Changes In The Pandemic Relief Bill

There are several student financial aid provisions in the pandemic relief package that was included in the Consolidated Appropriations Act of 2021 that passed the House and Senate on Monday, December 21, 2020.

Student Loan Relief

Student loan borrowers are disappointed that the legislation did not include an extension to the student loan payment pause and interest waiver, nor did it provide any student loan forgiveness.

The payment pause and interest waiver is set to expire on January 31, 2021. President-elect Joe Biden will be able to extend it further after he takes office on January 20, 2021. Several possible extension dates have been floated, including April 1, April 30 and September 30, but Joe Biden has not yet said anything specific about the extension, just that it is needed.

Nevertheless, there are some changes in the legislation that affect student loan borrowers. In particular, the tax-free status of employer-paid student loan repayment assistance programs (LRAPs), which was set to expired on December 31, 2020, has been extended for five years through the end of 2025. Such LRAPs will be exempt from income and FICA taxes for both the employee and the employer.

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SULA, a complicated set of limits on subsidized Federal Direct Stafford loans, has been repealed. SULA mostly affected students who transferred from a 4-year college to a 2-year college.

In addition, there have been a few changes concerning the U.S. Department of Education’s Next Generation Processing and Servicing Environment (NextGen) for federal student loans.

  • New student loan borrower accounts must be allocated to loan servicers based on their past performance and servicing capacity.
  • Borrower accounts must be reallocated from servicers for “recurring non-compliance with FSA guidelines, contractual requirements, and applicable laws, including for failure to sufficiently inform borrowers of available repayment options.” Applicable laws include consumer protection laws.
  • NextGen must allow for multiple student loan servicers that contract directly with the U.S. Department of Education.
  • NextGen must incentivize more support to borrowers at risk of delinquency or default.
  • Borrowers must be allowed to choose their loan servicer when they consolidate their federal loans.
  • The U.S. Department of Education must improve transparency through expanded publication of aggregate data concerning student loan servicer performance.

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Changes in College Tuition Tax Breaks

The legislation changes the income phaseouts for the Lifetime Learning Tax Credit (LLTC) to be the same as the income phaseouts for the American Opportunity Tax Credit (AOTC), starting with tax years that begin after December 31, 2020.

The Lifetime Learning Tax Credit will start phasing out at $80,000 for single filers and $160,000 for taxpayers who file as married filing jointly. The tax credit is fully phased out at $90,000 (single) and $180,000 (married filing jointly). Married taxpayers who file separate returns are not eligible.

For comparison, the 2020 income phaseouts for the LLTC were $59,000 to $68,000 (single) and $118,000 to $136,000 (married filing jointly).

The new income phaseouts will not be adjusted for inflation.

In addition, the legislation repeals the Tuition and Fees Deduction, effective with tax years that begin in 2021. This is a permanent repeal, so the Tuition and Fees Deduction will not be resurrected by the next tax extenders bill.

New Funding for Higher Education Emergency Relief Fund

The $81.88 billion for the Education Stabilization Fund includes

  • $54.3 billion for the Elementary and Secondary School Emergency Relief Fund
  • $22.7 billion for the Higher Education Emergency Relief Fund (HEERF)
  • $4.05 billion for the Governor’s Emergency Education Relief Fund, of which $2.75 billion has been earmarked for Emergency Assistance to Non-Public Schools

The Higher Education Emergency Relief Fund previously received $16 billion as part of the CARES Act.

The allocation formula for the HEERF funding is more complicated than the one in the CARES Act, but the allowable uses are similar. Public and private non-profit colleges are required to use at least half of the money for financial aid grants to students. Private for-profit colleges are required to use all of the money for financial aid grants to students. Colleges must provide at least the same amount of emergency financial aid grants to students as they did under the CARES Act provisions, even if their total allocation is lower.

The emergency financial aid grants to students can be used for any element of the student’s cost of attendance or for emergency costs related to the pandemic, such as “tuition, food, housing, health care (including mental health care), or child care.”

The grants must be prioritized to students with exception financial need, such as Pell Grant recipients.

The emergency financial aid grants to students are tax-free.

Most College Students Remain Ineligible for Stimulus Checks

Most college students will remain ineligible for the recovery rebate checks, also known as the stimulus checks.

The legislation includes the same restriction that limits the $600 per qualifying child to children age 16 and younger. Only 0.1% of undergraduate students are age 16 or younger.

College students who are under age 24 are also ineligible, because they can be claimed as a dependent on someone else’s federal income tax return. The remain ineligible even if they are not claimed on someone else’s tax return.

A college student might qualify if they are married and file a joint return with their spouse or if they provide more than half of their own support. About 15% of undergraduate students are married. College students who are 24 years old or older may also qualify. More than 40% of undergraduate students are 24 years old or older.

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College students can still claim the $1,200 stimulus checks from the CARES Act in addition to the new $600 stimulus checks, if they are eligible.

Increase in the Maximum Pell Grant

The maximum Federal Pell Grant has been increased to $6,495 for the 2021-2022 academic year.

Eligibility criteria will be pegged to a multiple of the poverty line starting with the 2023-2024 academic year. Students will be eligible for the maximum Pell Grant if they and their parents/spouse, as applicable, are not required to file a federal income tax return or if their adjusted gross income (AGI) is less than 175% to 225% of the poverty line. The higher threshold is reserved for households involving a single parent.

FAFSA Simplification

The legislation simplifies the Free Application for Federal Student Aid (FAFSA) starting with the 2023-2024 academic year. The new FAFSA reduces the number of questions on the form by two-thirds, from 108 questions to about three dozen questions. Follow me on Twitter. Check out my website or some of my other work here. 

Mark Kantrowitz

Mark Kantrowitz

I am Publisher of PrivateStudentLoans.guru, a free web site about borrowing to pay for college. I am an expert on student financial aid, the FAFSA, scholarships, 529 plans, education tax benefits and student loans. I have been quoted in more than 10,000 newspaper and magazine articles about college admissions and financial aid. I am the author of five bestselling books about paying for college and have seven patents. I serve on the editorial board of the Journal of Student Financial Aid, the editorial advisory board of Bottom Line/Personal, and am a member of the board of trustees of the Center for Excellence in Education. I have previously served as publisher of Savingforcollege.com, Cappex, Edvisors, Fastweb and FinAid. I have two Bachelor’s degrees in mathematics and philosophy from the Massachusetts Institute of Technology (MIT) and a Master’s degree in computer science from Carnegie Mellon University (CMU)

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University of California Television (UCTV)

How to pay for college is a pressing question for all applicants from the class of 2020. COVID-19 has caused financial uncertainty and many are having to rethink their plans. Jodi Okun, an expert in financial aid, joins Steven Mercer to talk about how the pandemic is impacting financial aid awards, what to do if your family’s financial situation has changed, and how to plan for the future in uncertain times. [Show ID: 35963] More from: STEAM Channel (https://www.uctv.tv/steam) UCTV is the broadcast and online media platform of the University of California, featuring programming from its ten campuses, three national labs and affiliated research institutions. UCTV explores a broad spectrum of subjects for a general audience, including science, health and medicine, public affairs, humanities, arts and music, business, education, and agriculture. Launched in January 2000, UCTV embraces the core missions of the University of California — teaching, research, and public service – by providing quality, in-depth television far beyond the campus borders to inquisitive viewers around the world. (https://www.uctv.tv)

He Got $221,000 Of Student Loan Forgiveness, But Then This Happened

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This veteran thought he got $221,000 of student loan forgiveness, but then this happened. Here’s what you need to know.

Student Loans: Bankruptcy

A Navy veteran was granted $221,000 of of student loan forgiveness, which is also known as student loan discharge. U.S. bankruptcy judge in New York, Cecilia G. Morris, ruled that Kevin J. Rosenberg will not have to repay his student loan debt because it will impose an undue financial hardship.

However, in a relatively rare move in bankruptcy cases, his student loan servicer, Education Credit Management Corporation (ECMC), is now appealing the ruling.

“Instead of pursuing those opportunities available to him, and paying back his taxpayer-backed federal student loans, Plaintiff, for the past 10 years, has held various positions in the outdoor adventure industry, including starting up and running his own tour guide business,” ECMC wrote in filings.

ECMC claims that Rosenberg, who has a law degree from Cordozo Law School at Yeshiva University, could have earned more income working as an attorney. Rosenberg borrowed $116,500 of student loans between 1993 and 2004. He filed for Chapter 7 bankruptcy in 2018 and asked the court last June to discharge his student loan debt, which had grown to $221,400, including interest. At the time of filing, Rosenberg’s annual salary was $37,600, and after living and debt expenses, his monthly net loss was $1,500.

Traditionally, unlike mortgages or credit card debt, student loans cannot be discharged in bankruptcy. There are exceptions, however, namely if certain conditions regarding financial hardship are met.

The Brunner Test: Financial Hardship

Those conditions are reflected in the Brunner test, which is the legal test in all circuit courts, except the 8th circuit and 1st circuit. The 8th circuit uses a totality of circumstances, which is similar to Brunner, while the 1st circuit has yet to declare a standard.

In plain English, the Brunner standard says:

  1. the borrower has extenuating circumstances creating a hardship;
  2. those circumstances are likely to continue for a term of the loan; and
  3. the borrower has made good faith attempts to repay the loan. (The borrower does not actually have to make payments, but merely attempt to make payments – such as try to find a workable payment plan.)

“Inability to pay one’s debts by itself cannot be sufficient to establish an undue hardship; otherwise all bankruptcy litigants would have an undue hardship,” ECMC argued.

What Else Can You Do If You’re Struggling To Make Student Loan Payments?

Here are some potential action steps:

1. Income-Driven Repayment: For federal student loans, consider an income-driven repayment plan such as IBR, PAYE or REPAYE. Your payment is based on your discretionary income, family size and other factors, and you can receive federal student loan forgiveness on the remaining balance after 20 or 25 years of payments. However, you will owe income taxes on the amount of student loans forgiven.

2. Pay Off Other Debt: Pay off credit card debt first. Credit card debt typically has a higher interest rate than student loans. You may qualify for a personal loan at a lower interest rate, which can be used to pay off credit card debt, save you money in interest costs and potentially improve your credit score.

3. Contact your lender: If you’re facing financial struggle, don’t keep it a secret from your lender. Contact your lender to discuss alternative payment options.

4. Refinance student loans: Student loan refinancing rates are incredibly cheap right now and start at 1.99%. Student loan refinancing is the fastest way to pay off student loan debt. To qualify, you’ll need a credit score of at least 650 and enough monthly income for living expenses and debt repayment. If you meet those requirements, you may be a good candidate for student loan refinancing. If you don’t, you can also apply with a cosigner to help you get approved and get a lower interest rate.

This student loan refinancing calculator shows how much you can save with student loan refinancing.

Follow me on Twitter or LinkedIn. Check out my website or some of my other work here.

Zack Friedman

Zack Friedman is the bestselling author of the blockbuster book, The Lemonade Life: How To Fuel Success, Create Happiness, and Conquer Anything. Apple named The Lemonade Life one of “Fall’s Biggest Audiobooks” and a “Must-Listen.” Zack is the Founder & CEO of Make Lemonade, a leading online personal finance company that empowers you to live a better financial life. He is an in-demand speaker and has inspired millions through his powerful insights. Previously, he was chief financial officer of an international energy company, a hedge fund investor, and worked at Blackstone, Morgan Stanley, and the White House. Zack holds degrees from Harvard, Wharton, Columbia, and Johns Hopkins.

Source: He Got $221,000 Of Student Loan Forgiveness, But Then This Happened

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Student Loan Refinancing Just Got Crazy Cheaper

Student loan refinancing rates have dropped even lower.

Here’s why and what you need to know.

Student Loan Refinancing: Rates Drop Even Further

Student loan refinance rates now have dropped to as low as 2.01%.

Why? The Federal Reserve cut interest rates, and lenders have reduced student loan refinancing rates to a near-term low. That’s great news for student loan borrowers who want to refinance student loans, get a lower interest rate and save money.

Here’s how to refinance your student loans.

Student Loan Refinancing: Should I Refinance Student Loans?

Today In: Money

Many people ask: Should I refinance student loans?

If you want to save money and pay off student loans faster, student loan refinance is an effective tool. When you refinance student loans, you exchange your current student loans for a new, single student loan with a lower interest rate.

Student loan refinancing has several advantages, including:

  • lower interest rate
  • single monthly payment
  • fixed or variable interest rate
  • flexible 5-20 year loan repayment term
  • one student loan servicer
  • pay off your student loans faster
  • save money

Student Loan Refinancing: How To Apply

If you want to know how to refinance student loans, it’s important to understand how to apply. The good news: the process is simple.

Step 1: Find the best interest rate

There are multiple trusted, online lenders that can refinance student loans with low interest rates and easy, online applications. Compare the best interest rates and loan terms. Most borrowers will refinance student loans with the lender who gives them the lowest interest rate. Most lenders allow you to check your preliminary interest rate online for free within two to three minutes without any impact to your credit score.

Step 2: Use a student loan refinancing calculator 

This free student loan refinance calculator shows you how much money you can save when you refinance student loans.

For example, let’s assume you have a $100,000 student loan at an 8% interest rate and 10-year repayment term. If you refinance that student loan with a 3.0% interest rate and 10-year repayment term, you would lower your monthly payment by $248 and save $29,720 in total payments. If you are a doctor, dentist or pharmacist with a large student loan balance, your savings may be even higher.

Step 3: Apply online

You can apply online for student loan refinancing. Most applications take 10-15 minutes to complete. You can also upload any supporting documents, which may include a copy of your driver’s license, transcripts, recent paystubs or job offer letter.

Student Loan Refinance: Key Questions

1. Do I qualify for student loan refinance?

While each lender has its own underwriting criteria, the best candidates for student loan refinancing typically have the following:

  • A credit score of 65o or higher
  • Current employment or a written job offer
  • Stable, recurring monthly income
  • A low debt-to-income ratio
  • No defaults on their student loans

What if you don’t satisfy these requirements? You should apply with a co-signer with strong credit and income. Your co-signer can help you get approved for student loan refinancing and help you receive a lower interest rate. Your co-signer will be equally financially responsible for the student loan. However, some lenders allow the co-signer to be released from any financial obligations after meeting certain requirements.

You can maximize your chances of getting approved to refinance student loans by applying to multiple lenders. Each lender makes a separate decision, so getting rejected from one lender does not negatively impact your chances with another lender.

2. Can you refinance Parent PLUS Loans?

Yes. Parent PLUS Loans carry relatively high interest rates, so refinancing Parent PLUS Loans is a smart way to lower your interest rate and save money.

3. What are the fees to refinance student loans?

There are no fees to refinance your student loans. If any lender tries to charge you a fee to refinance student loans, find another lender. There are also no prepayment penalties, so you can pay off student loans anytime with no charge.

4. Should I refinance my federal student loans?

You should not refinance federal student loans if:

  • you plan to pursue public service loan forgiveness or an income-driven repayment plan
  • you want access to deferral or forbearance options

You can still refinance your private student loans and leave your federal student loans outstanding. Most lenders today offer employment protection if you lose your job and want to pause your monthly payments.

5. When should I refinance student loans? How often can I refinance student loans?

When should you refinance student loans? The answer: you should refinance student loans whenever you qualify for a lower interest rate. If you can get a lower interest rate and save more money, then it may be a smart financial move.

How often can you refinance student loans? There are no fees to apply, no fees to refinance, and no limit to how often you can refinance student loans.

Follow me on Twitter or LinkedIn. Check out my website.

Zack Friedman

Zack Friedman is the bestselling author of the highly-anticipated, blockbuster book, The Lemonade Life: How To Fuel Success, Create Happiness, and Conquer Anything. Zack is the founder and chief executive officer of Make Lemonade, a leading personal finance company that empowers you to live a better financial life. He is an in-demand speaker and has inspired millions through his powerful insights. Previously, he was chief financial officer of an international energy company, a hedge fund investor, and worked at Blackstone, Morgan Stanley, and the White House. Zack holds degrees from Harvard, Wharton, Columbia, and Johns Hopkins.

Source: Student Loan Refinancing Just Got Crazy Cheaper

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5.🔸Sofi ($100 Bonus): sofi.com/share/2345532 4.🔸Splash Financial ($300 Bonus for $30k refi or more): https://splash-financial.sjv.io/X5YXo 3.🔸Commonbond: http://bit.ly/CommonBondTF 2.🔸LendKey ($200 Bonus): https://mbsy.co/v9bGH 1.🔸Earnest: https://earnest.pxf.io/1KGY9 *Keep in mind that any bonus can change at any time* We go over the top 5 Student Loan Refinance Companies. As well as talk about a few important things to know before doing a student loan refinance. ●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●● 🔔SUBSCRIBE ➡ ​https://www.youtube.com/trufinancials…… ●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●●● Disclaimer: I am not a CPA, attorney, or financial advisor and the information in these videos shall not be construed as tax, legal, or financial advice from a qualified perspective. If you need such advice, please contact a qualified CPA, attorney, or financial advisor. Some of the links are affiliate links. Which means if you click on some of the links I will make a small commission at no additional cost to you. This helps keep me making videos and providing value. Thank you for your support!

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Education

How To Get $700 Million Of Student Loan Forgiveness

There’s $700 million of student loan forgiveness up for grabs on a first-come, first-served basis.

Here’s what you need to know and how to apply.

Student Loan Forgiveness

See if you can follow this story. The federal government offers a student loan forgiveness program. Student loan borrowers who think they qualify apply. 99% are rejected. Congress creates an expanded student loan forgiveness program. Student loan borrowers who think they qualify for the expanded program apply. 99% are rejected.

Yes, really.

A new government watchdog report, first obtained by NPR, says a confusing student loan forgiveness program and process resulted in 99% of the 54,184 completed requests for student loan forgiveness being denied. From May 2018 to May 2019, Congress only spent $27 million of the $700 million on 661 requests for this new student loan forgiveness effort, according to the Government Accountability Office.

“The Department has taken steps to help borrowers better understand the complex eligibility requirements, application process, benefits, and other information related to the PSLF and TEPSLF programs,” Angela Morabito, U.S. Education Department press secretary told NPR. The Department agrees with the GAO’s recommendations about how to improve the programs; a number of our efforts are already underway.”

Today In: Money

What happened and what you can do about it?

In May 2018, the U.S. Department of Education announced the details of the Temporary Expanded Public Service Loan Forgiveness program. This program provides for student loan forgiveness for borrowers who previously chose an ineligible repayment plan as part of the Public Service Loan Forgiveness program. The Public Service Loan Forgiveness program is a federal program that forgives federal student loans for borrowers who are employed full-time (more than 30 hours per week) in an eligible federal, state or local public service job or 501(c)(3) non-profit job who make 120 eligible on-time payments over 10 years.

Here’s the important part that many of these applicants – including the 71% who were rejected for this reason – missed. To apply for this expanded student loan forgiveness program, you had to meet all the requirements for the Public Service Loan Forgiveness program, but you mistakenly enrolled in an ineligible repayment plan (such as the graduated or extended repayment plans). You with me?

How To Apply For Temporary Expanded Public Service Loan Forgiveness

Ok, so how do you avoid the fate of the 99% who were rejected from this expanded student loan forgiveness program?

Here’s what you need to know to ensure that you qualify:

1. You must work for a qualifying public service employer in a qualifying public service role

Typically, there are two types of employers: a) state, local and federal government; and b) 501(c)(3) non-profit.

2. You must have direct, federal student loans

The Public Service Loan Forgiveness program does not forgive private student loans – even if you work in public service. If you’re not sure what type of student loans you have, check with your student loan servicer or through Federal Student Aid. If you have FFEL loans, you need to consolidate your student loans into a Direct Consolidation Loan with the federal government to qualify for Public Service Loan Forgiveness.

3. You must be enrolled in a federal repayment plan

You also must be enrolled in an income-driven federal repayment plan, and make the majority of your payments under the plan. You can determine which student loan repayment plan works best for you with these student loan calculators.

4. You must have applied for Public Service Loan Forgiveness

This is critical. Do not skip this step. You must have applied for the Public Service Loan Forgiveness program and made some or all of your payments under a repayment plan that did not qualify. Then, you were rejected solely because you enrolled in an ineligible student loan repayment plan.

How do you apply for Temporary Expanded Public Service Loan Forgiveness?

There are two easy steps:

  1. Email FedLoan Servicing at TEPSLF@myfedloan.org to request that the Education Department reconsider your eligibility for Public Service Loan Forgiveness.
  2. Include the same name under which you submitted your Public Service Loan Forgiveness application and your date of birth in the email.

Sample Email Template

Here is a sample template email that you can use:

To: TEPSLF@myfedloan.org

Subject: TEPSLF request

I request that the U.S. Department of Education respectfully reconsider my eligibility for public service loan forgiveness.

  • Name: [Enter the same name under which you submitted your Public Service Loan Forgiveness application]
  • Date of Birth: [Enter your date of birth in MM/DD/YYYY format]

Thank you for your consideration.

Sincerely,

Your Name

You will receive a response from FedLoan Servicing once your request has been reviewed. Separately, you can contact FedLoan Servicing at 1-855-265-4038 from 8 a.m.– 9 p.m. Eastern time, Monday through Friday.

What if you don’t work in public service?

While you could try for student loan forgiveness through an income-driven repayment plan, it may take 20 to 25 years to receive forgiveness and your student loans may be paid off by then. There’s a more proactive approach.

Student loan refinancing can lower your interest rate, which can save you substantial money in interest payments. With student loan refinance, you can combine your existing private student loans, federal student loans or both into a new, single student loan with a lower interest rate and one monthly payment. This student loan refinancing calculator shows you how much you can save.

You won’t have access to federal repayment plans and benefits, but many private student loan lenders now offer forbearance and deferral programs for economic hardship. The higher your student loan balance, the more you can potentially save.

Follow me on LinkedIn. Check out my website.

Zack Friedman

Zack Friedman is the bestselling author of the highly-anticipated, blockbuster book, The Lemonade Life: How To Fuel Success, Create Happiness, and Conquer Anything. Zack is the founder and chief executive officer of Make Lemonade, a leading personal finance company that empowers you to live a better financial life. He is an in-demand speaker and has inspired millions through his powerful insights. Previously, he was chief financial officer of an international energy company, a hedge fund investor, and worked at Blackstone, Morgan Stanley, and the White House. Zack holds degrees from Harvard, Wharton, Columbia, and Johns Hopkins.

Source: How To Get $700 Million Of Student Loan Forgiveness

5 Secrets To Refinance Your Student Loans – Zack Friedman

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With interest rates rising, there’s no better time to refinance student loans.

Student loan refinancing enables to you combine your existing federal and private student loans into a new, single student loan with a lower interest rate. As a result, you can lower your monthly payment and save significantly on interest costs, which can help you pay off your student loans faster.

(You can see how much you can save through refinancing with this free student loan refinancing calculator).

Here are 5 secrets to get approved to refinance your student loans:

1. Have a strong credit score

Lenders want to refinance student loans for borrowers with a history of financial responsibility.

One way they measure financial responsibility is through your credit score (or its underlying components). To increase your credit score, make sure that you meet your financial obligations and have a history of on-time payments. Don’t skip any payments and minimize your total debt as well as your credit card utilization.

If you don’t have a strong credit score, the good news is you can apply with a qualified co-signer, which can increase your chances for approval.

Insider Tip: Aim for a credit score of 700 or higher. However, lenders will refinance student loans for borrowers with credit scores starting at about 680.

2. Have a strong income

In addition to a strong credit score, student loan lenders want to ensure that you have stable and recurring income to repay your student loans.

How do you know if you have enough income to get approved?

Review your monthly after-tax income. When you subtract your monthly student loan and other debt payments, does a sufficient amount of income remain for other essential living expenses?

Insider Tip: If you do not have sufficient income after making student loan payments, you can increase your chances for approval with a qualified co-signer who has a strong monthly income.

3. Have no or limited other debt

Student loan lenders will evaluate all your debt – not just your student loan debt.

If you have credit card debt, mortgage debt or auto debt, lenders will sum all your debt payments together to understand your total debt obligations each month. The lower your monthly debt payments relative to your income, the better.

Insider Tip: This free lump-sum extra payment calculator can show you how much money can save by paying off some of your debt with a one-time payment. Pay off some of your debt obligations before applying to refinance student loans.

4. Have a relatively small debt-to-income ratio

Student loan lenders are interested in the relationship between your monthly income and your monthly debt obligations, which is known as your debt-to-income ratio.

For example, if you have $10,000 of monthly income and $3,000 of monthly debt expenses, then your debt-to-income ratio is 30%.

Insider Tip: The lower your debt-to-income ratio, the better. You can improve your debt-to-income ratio by increasing income or decreasing debt (or both).

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5. Be employed

It’s best to be employed with 1-2 years of work experience to maximize your chances of being approved for student loan refinance.

However, if you have a written job offer when you apply to refinance student loans (even if you are in graduate school or residency, for example), you can still get approved for student loan refinancing.

If you are unemployed or do not have stable, recurring income, it will be difficult to be approved for student loan refinancing.

Insider Tip: If you are unemployed or underemployed, your best option is to apply with a qualified co-signer with a strong credit profile.

Here’s a bonus tip: Apply to refinance your student loans with multiple lenders at once, not just one. First, it will only count as a single credit inquiry, and second, you will also maximize your changes for approval.

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