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This is a money saving tip for the 50/50 Challenge.
Today's tip is simple – look into getting your student loans consolidated and refinanced.
Student loans can be a big monthly burden. The average student loan debt from a 4 year public college is just over $20,000.
If you're struggling to pay them and if the circumstances are right, consolidating your student loans can give you more breathing room in your budget.
Why You Should Consolidate Loans
Make sure you run the numbers if you're thinking of getting your student loans consolidated. Basically consolidating and refinancing your loans can be a great option for two reasons:
- Lower payments: If you have lower payment obligation, you can continue making the same payments before the consolidation and pay the loan quicker. No increase in your expenses, but you’re reducing your debt quicker. That’s a win-win.
- Lower interest rate: Even if you can’t make extra payments, you pay less interest over the life of the loan.
If you can accomplish both, you can save a big chunk of money as you make payments and over the life of your loan.
Refinancing Your Loans Quickly & Easily
Refinancing your student loans could save you thousands of dollars!
They offer competitive and low rates (as low as 2.36%!) plus they're offering a $100 bonus now!
SoFi has simplified the process so you have less hassle. Learn more here and see if you can lower your payments today!
Consolidating My Student Loans
By consolidating my student loans I was able to lower the monthly payments by $50/month and get a lower interest rate. That allowed me to take care of other financial goals while decreasing our monthly expenses by a bit.
Handling Student Loans
If you're a currently in college, try your best to avoid taking out needless student loans.
Live like a college student and avoid lifestyle inflation. You'll be grateful later when you don't have a big debt to pay back.
For those repaying their educational debt, I'd like to hear how you're doing. How much of your monthly budget is used to pay your student loans? For those who have consolidated, how much money have you saved?