Millennial Stuff, Money

Refinance Student Loans: Why I Did It and Is it Right For You?

The refinance on my student loans went through! Having student loan debt has probably been one of the most complicated things for me to figure out on my debt free journey. When I started my journey, I had about $7,500 in debt in my own name, but I also had student loans in my dad’s name. They were “parent plus” loans, which ultimately means that my dad was technically responsible for the payments on them. I had attempted to go through the original loan company to get myself added to the account, but they continually told me that because they were parent plus loans, it was not my account and I was not responsible for them. However, I knew when I took them out, that I was ultimately responsible for making the payments on them. When I started looking into my student loans more, I realized my interest rate was high. I was paying over 7% interest on $25,000+. It ended up calculating out to $8 a DAY in interest since 2014.  I don’t regret taking out my student loans, even though I don’t have my degree yet, but I didn’t want to continually pay on them over and over again in interest. I finally decided to refinance my student loans through SoFi, (Social Finance).  Why did I refinance my student loans? 1) They were in my dad’s name. Because I have been throwing all of my money at them, I have paid off about $3,000 in interest off in the last year. When it comes to taxes this year, it will all go to my dad’s name instead of my own. Ultimately, it is fine, but that tax break would have went right back towards my debts. 2) My credit score had gone up 120+ points since I had originally took out student loans. This helps because when I took out loans, I had almost no credit. I didn’t get approved for very much, but my dad did. Now that my credit went up, I can actually get approved for the amount that my education costs. 3) 7.4% interest…

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