Can You Refinance Your Student Loans? Sure, If You’ve Got the Dough
The above is a graphic from this Wall Street Journal story about lenders who are offering to refinance the student loans of professionals who’ve graduated and been in the workforce for a few years. But as you can see, the types of people these companies are interested in approving must have high incomes and credit scores:
San Francisco-based Social Finance, also called SoFi, refinances borrowers that its executives have described as Henrys, or High Earners Not Rich Yet. The average member: 33 years old with a FICO credit score above 700 on a scale of 300 to 850. The average income is about $140,000.
New York-based CommonBond says it will refinance loans only from borrowers who have received specific degrees from specific graduate schools, including 85 medical schools and 75 law schools. Someone with a master’s degree in finance must have received it from one of 13 schools that include Princeton University and Vanderbilt University. The lender says it plans to expand to more schools and degrees this year.
The WSJ writes that Sen. Elizabeth Warren and the CFPB have “pushed for the U.S. government to refinance student loans at lower rates” for low-income borrowers, but her efforts have been stalled, leaving borrowers to look towards the private markets for help.
Since it’s College Month, I’m curious in hearing if, as a non-high earner, you’ve found success in refinancing your student loans and scored a lower interest rate: firstname.lastname@example.org