Author Topic: Brand new member, student loan question  (Read 2352 times)

drmitch

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Brand new member, student loan question
« on: May 22, 2015, 12:44:53 PM »
Hey all; great stuff here and very happy to have found you, via curbly.com.  Here's my dilemma: 15 years out of school, I've still got $115K in student loan debt at 7%.  As you know, those can't be refi'd.  Currently $850/month payment.  I hate everything about having this millstone around my neck.  My mortgage payment is $960/month at 4.375% [splitting $1920 with my wife].  I've been looking at doing a refi on the house with either a fixed 2nd or a variable HELOC but...even 10 years into the mortgage, 75% loan to value doesn't cover the $115K need.  My father-in-law has offered to take out a 2nd to cover the difference with me making both payments of course.  While all of this gets the job done, is there a better way?  Pitfalls?  Angles?  THANKS!

MDM

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Re: Brand new member, student loan question
« Reply #1 on: May 22, 2015, 01:40:26 PM »
15 years out of school, I've still got $115K in student loan debt at 7%.  As you know, those can't be refi'd.
Didn't know that.  Why?  What about https://www.sofi.com/?

forummm

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Re: Brand new member, student loan question
« Reply #2 on: May 22, 2015, 01:51:41 PM »
You can't get a consolidation loan?

Minor pitfall for HELOC is that only up to $100k may be tax-deductible, whereas your student loans should be.

asiljoy

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Re: Brand new member, student loan question
« Reply #3 on: May 22, 2015, 02:29:35 PM »
I'm working with Sofi now and they've been alright; it's looking like I'll be able to refinance the last 45,000 into a 10 yr, variable at 3.04% saving a bunch of money in the long term as my goal is to have that paid off in under 5.

There's good info/debate in the article here: http://www.mrmoneymustache.com/2015/05/06/sofi-review/

Or this thread: http://forum.mrmoneymustache.com/reader-recommendations/my-experience-refinancing-student-loans-with-sofi/

drmitch

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Re: Brand new member, student loan question
« Reply #4 on: May 22, 2015, 05:02:55 PM »
I'm pretty sure I talked to SOFI via email.  They looked promising online but they told me that my college is not on their list so they couldn't help me.  When I said a student loan can't be refi'd, what I mean is you cannot refi THAT loan.  The federal loans are LOCKED [no doubt due to some strong lobbying by somebody] so whatever rate you get when you take the loan, that's it.  The only ways out are to take a new loan elsewhere to pay off the student loan, become totally disabled and unable to work/pay or...die.  They also cannot be discharged in bankruptcy.  It's quite the racket with everything in favor of the lender.

Hoberto

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Re: Brand new member, student loan question
« Reply #5 on: May 24, 2015, 04:04:17 AM »
I'd strongly suggest refinancing (or getting another loan and paying off as you prefer) your federal student loans through Sofi, DRB or one of the many other banks offering this service.  Sofi has expanded their school list so you could look into them again. 

I refinanced almost 200k in direct federal loans with DRB and it was pretty simple.