by Tom O'Hare | Jun 30, 2025 | During & After - Just Thinking, Student Loan Repayment
Should I refinance my education loans?
Refinancing your college loans is a significant financial decision that can save you money, but it’s not the right choice for everyone. Here’s a breakdown of factors to consider to help you decide:
Reasons to consider refinancing:
- Lower interest rate: If you can qualify for a lower interest rate than your current loans, you can save thousands of dollars over the life of the loan.
- Improve credit score: A good credit score can lead to lower refinance interest rates. Refinancing could be beneficial if your credit has improved since you took out your original loans.
- Simplify payments: Refinancing allows you to consolidate multiple loans into a new loan with one monthly payment.
- Switch to a Fixed Rate: Refinancing to a fixed-rate loan can provide more predictability if you have a variable interest rate loan and are concerned about the rate increasing.
- Removing a Co-signer: Most loans carry a co-signer release of 24-36 months based on eligibility. If eligible, removing a co-signer from the note earlier can benefit the co-signer’s credit and ability to borrow.
- Pay off debt faster: A lower interest rate can allow you to put more money towards the principal balance, enabling you to pay off your debt sooner.
- Steady income: Lenders will evaluate your income and debt-to-income ratio to ensure you can afford the new loan. A steady income can increase your chances of being approved and getting a good rate.
- No need for federal loan protections: Refinancing may be a good option if you don’t require the flexibility and protections offered by federal loans, such as income-driven repayment or forbearance.
When refinancing may not be the best option:
- Federal loan benefits: Refinancing federal student loans with a private lender means losing access to federal protections and benefits like income-driven repayment plans, loan forgiveness programs (e.g., Public Service Loan Forgiveness), deferment, and forbearance options.
- High-interest rate: Refinancing might not be worthwhile if you cannot secure a lower interest rate than your current one.
- Bankruptcy or default: If you have recently defaulted on loans or declared bankruptcy, you will unlikely qualify for refinancing.
- Fees outweigh savings: For borrowers with low loan balances, the cost of fees associated with refinancing may outweigh the interest savings.
- Unstable income: If your income is unpredictable, it’s best to stick with federal loans, as they offer more flexible repayment options.
- Pursuing loan forgiveness: Refinancing will make you ineligible if you pursue a federal loan forgiveness program.
In summary:
Refinancing can be smart if you can secure a lower interest rate, have a stable financial situation, and don’t require the protections offered by federal student loans. However, it’s crucial to carefully consider the potential loss of federal benefits and assess your circumstances before deciding.
To make an informed decision:
- Prequalify with multiple lenders: Compare rates and terms that different refinance companies offer.
- Use a student loan refinancing calculator: Estimate your potential savings based on different interest rates and repayment terms.
- Evaluate your financial situation: Consider your credit score, income, and overall debt levels.
- Understand the trade-offs: Weigh the benefits of a lower interest rate against the loss of federal loan protections.
By carefully evaluating these factors, you can determine if refinancing is the best way to manage your college loans effectively.
Call use at Get College Going. Were happy to review best practice options for you and make recommendations on a ender or credit union.
by Tom O'Hare | Jun 16, 2025 | Before, College Admissions, College Planning
Over the past few months, I have spoken with students and parents, both individually and in groups, listening to their challenges and sharing my insights. Families and individuals included those with high school and college-age students, those about to graduate, and many already in the workforce.
I’ll share some insights addressing the four groups, but first, I want to share a brief testimonial from a dad of younger students. This dad, like me, is a planner. As I have written before, planning is critical to prepare for life after high school and before graduation. If you’re a parent of young kids, read on.
Young Family’s Insights
“I am big on planning, and I recently met with Tom to review/refine my plan, which has been extended for 10+ years. My wife and I have three children aged 3 to 8. We are currently pleased with our public elementary option, but we are always intrigued by the private option. Our oldest children are good athletes for their age, and as Tom highlighted, aptitude starts to develop in middle school. After talking, we sensed that a private middle school option might be best for our family. This will allow us to evaluate the quality, affordability, local high school options, and talents of our children. I am a product of public education from kindergarten to college, but I also recognize that standards are changing and that we want to position our children for success. Tom reinforced the importance of perseverance, learning to share space, and the value of planning financially (asset location). After sanity-checking my plan with Tom, I felt better and made the savings adjustments to hopefully realize our oldest child’s private middle school option”.
Thank you, Dad!
What’s happening in June
Congratulations to all fellow Geminis. June is extra special for me as I celebrate 45 years with the most wonderful, caring, and beautiful spouse and mother of my four kids… I’m blessed!!
A new wave of young adults is leaving college, some advancing to graduate school, and tweens who need to transfer after rethinking their first choice. However, the vast majority will be looking for their first real “adult” job. They will need your help to:
- Learn how to network to find work versus using Indeed
- How to understand employee benefits
- Understanding that internships or temp-to-hire can lead to full-time work
- The importance of creating a financial budget
- Embrace the start of their student loan payback
Don’t let the noise from Washington and the tremendous late-night bantering paralyze you from taking proactive steps to manage your student loan obligations. Repayment benefits through the federal government, private education loan providers, and, in some cases, employers are available to help all students and families.
Preparing for September
I’m 18 NOW – If you send a son to college or work at 18 or older, your student and family must be protected. They may always be young in your mind, but in the eyes of the legal, medical, and higher education world, they are on their own. Old enough to speak and advocate for themselves. Protecting them means having proper documentation, so you, as their parent, can continue to assist them in a safe and healthy growth.
Essay, College Options, Scholarships, and Applications
Snap your fingers, and we’re there. It’s time to apply to college. The list is down to 12, the writing is complete, and recommendations are in. We found and applied for scholarships based on our academic interests, hobbies, high school resumes, and family backgrounds. We have had numerous meetings with college admissions and toured campuses. We ran our financing numbers and understood how much we would need to pay.
Don’t pause during the summer. It is valuable college planning time!
Start a conversation if you need help with your 11th-grade checklist, calming the waters, managing education loan repayment, or hosting an on-site employee seminar. Call today!
Get College Going, a full-service education advising practice based on the North Shore, has been helping families manage the college process before, during, and after college for four decades. Learn more about how we are helping families and individuals find the right education pathway at the right school for the right reason at an affordable investment. Visit www.getcollegegoing.com to learn more.
