Author Topic: student loan balance too low to bother refinancing?  (Read 738 times)

michaelrecycles

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student loan balance too low to bother refinancing?
« on: October 11, 2017, 01:46:13 AM »
Seeking feedback on a small student loan:

We have a small federal student loan, balance just under $6k, at 6.55%, estimated payoff in 2023. We have already received some loan forgiveness available to teachers. Now, we're considering refinancing to a private student loan for a lower interest rate.

The only reason we would consider retaining the federal student loan is for the Public Service Loan Forgiveness, which requires 10 years of service. Given the low balance and payoff date, combined with planned time off to care for new babies (as well as FI plans), there will no longer be a loan to be forgiven when my wife reaches 10 years (if she gets there at all).

Since that seems to clear the way for private refinancing, I'm looking for any feedback prior to taking that jump.

Is the balance so low that it's not even worth bothering? (SoFi's calculator estimates $642 in lifetime interest savings, if we get their best rate on a 5 year term.)
Or is $6k too low to meet a minimum loan amount?
Any similar experiences you learned from?
Or lenders you recommend?

MDM

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Re: student loan balance too low to bother refinancing?
« Reply #1 on: October 11, 2017, 12:03:15 PM »
If you can't refinance to a much better rate, paying it off ASAP is not unreasonable.

Heroes821

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Re: student loan balance too low to bother refinancing?
« Reply #2 on: October 11, 2017, 02:32:06 PM »
Personally, I rolled my remaining 6k of student loans into a CC that was offering 0% interest for 2 years because I am confident that I will have it paid off long before 2 years pass.  I think my interest was like 4.5% or something like that.

If that is all the debt you have at the moment, I'd just make bigger payments and get it gone as fast as you can.