Student loans can often feel like an insurmountable avalanche of interest and payments with no end in sight, and perhaps even make you question why you ever took on the loan in the first place.
However, here at Kendall Capital, we want to help lift the cloud of debt over our clients and celebrate their education (or their children’s) by exploring ways to potentially lower your student loan interest rate, reduce payments, or even combine student loans with your spouse. More and more lenders are beginning to see the opportunity in offering student loan refinancing.
For example, Pen Fed offers the ability for parents to refinance PLUS loans, as well as married graduates to combine their loans. This student loan refinance program is for people with strong credit history (usually that means a credit score of above 700, but you could apply with a lower score if you have an eligible cosigner). You also need to meet certain income eligibility. For loans up to $150,000 you must earn at least $42,000 or $25,000 if you have a cosigner that earns at least $42,000. For larger loans you need an income of at least $50,000 annually. Terms of 5, 8, 12 and 15 years are offered and parents with Parent Plus loan or private education loans are also eligible for these loans.
Some lenders also offer a unique option for spouses who want to refinance their loans to a single payment. This will allow married couples to refinance two loans into a single loan with a single monthly payment. They will also refinance the combined loan using the highest credit score and using your combined income, which will give you the lowest possible interest rate on the combined loan. Keep in mind, all rates and terms are subject to change.
The Bottom Line
Right now, lenders are offering great rates for people with strong incomes and strong credit scores. The options for joint spouse refinancing, can make a lot of sense for couples that want to lower their interest rates. In fact, if one half of the couple has a poor credit score, this is likely the best option for refinancing.
If you or your children have student loans, we encourage you to talk to your advisor at Kendall Capital about refinancing options.