' Can You Refinance Student Loans? - Law Offices of Robert M. Geller
CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

With Feds Setting the Rates, Student Borrowers Can’t Refinance

Interest rates are at the lowest that they have been in a long time. A lot of people who purchased a home before the housing crisis signed a fixed rate mortgage at rates as high as 8.0 to 9.0 percent in the 1990s. Now, a lot of those people who are able to are taking advantage of rates as low as around 3.5 percent for a 15 or 13-year mortgage by refinancing their home. Depending on the amount of the unpaid mortgage balance, this can save them multiple thousands of dollars in the long run.

Student loans help benefit the United States market by allowing individuals to obtain higher degrees that they may otherwise be unable to pay for on their own. However, recent grads are struggling more than ever with overwhelming student loan debt that their salaries aren’t coming close to covering. So why can’t they take advantage of these incredibly low interest rates?

The first important point to note in this discussion is that we are talking about federal student loans, not private loans. The Stafford loans and graduate loans whether subsidized or unsubsidized — if you have them, you’ve heard the terms — are backed by the federal government and these interest rates are not set in the free market. They are also not backed by collateral like a house or a car.

What is shocking is how many Americans owe student loan debt. According to many estimates, there is approximately $1 trillion in outstanding student loan debt in the country, and approximately $864 billion of that amount is federal loan debt that is being paid back at rates above 6 percent. Most of the 37 million Americans that owe student loan debt are over the age of 30. Approximately 15 percent are even above the age of 50. More bad news? Over 13 percent of the students who had to begin paying their loans in 2009 have defaulted already in the three years that followed.

Even worse, the interest rates that the government has set these loans at means that they are making three times the amount of money that it costs them to borrow it in the first place. Some wonder what is being done or what should be done to help those that are falling under this burden.

Source:TIME, “Why Can’t People with Student Loans Refinance at Better Rates?” Dan Kadlec, Feb. 20, 2013

If you have questions about what debts you can get rid of in bankruptcy, our website provides answers to that question and access to those who can help with serious debt relief.

Archive

Video Testimonials

Tampa Bankruptcy Law Blog

Does Bankruptcy Clear Attorney Debt?

Filing for bankruptcy is a complex process that often requires the expertise of a bankruptcy attorney to navigate successfully. However,...
Read More

What to Ask a Bankruptcy Attorney?

Deciding to file for bankruptcy is a significant and often emotional step, and having the right legal guidance is crucial...
Read More

How Can I File Bankruptcy with No Money?

Filing for bankruptcy is often seen as a last resort for those overwhelmed by debt. It's a step that provides...
Read More

What Does the Bankruptcy Trustee Investigate?

Filing for bankruptcy can be a daunting process, filled with complex legalities and numerous requirements. One key figure in this...
Read More

Can You Make Too Much Money to File for Bankruptcy?

When people think about bankruptcy, they often envision individuals who are completely destitute and unable to meet basic financial obligations....
Read More

Can You File Bankruptcy with Equity in Your Home?

For many individuals facing financial hardship, their home represents their most significant asset. However, when struggling with overwhelming debt, the...
Read More

Are Trusts Protected from Bankruptcy?

Trusts are powerful estate planning tools. They allow people to protect and distribute their assets according to their wishes. This...
Read More

The Truth About Bankruptcy and Buying a Car

The Truth About Bankruptcy and Buying a Car Bankruptcy often carries a stigma of financial ruin and a bleak future....
Read More

How Do Bankruptcy Lawyers Get Paid?

Bankruptcy can be a stressful and overwhelming experience, but having the right legal representation can make all the difference in...
Read More

Do You Lose Your Home When You File for Bankruptcy?

Filing for bankruptcy can be a daunting prospect, especially when it comes to concerns about losing one's home. Your home...
Read More

Bankruptcy

For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More

Infographics

We are A Debt Relief Agency.
We help people file for bankruptcy under the Bankruptcy Code

Pay Online Bankruptcy Courses Newsletter Subscription

Call For A Free Initial Consultation

813.254.5696

Tampa Office

Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
F: (813) 253-3405

Map And Directions

St. Petersburg Office

Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G
St. Petersburg, FL 33701
T: (727) 532-3939

Map And Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 336-2320

Map And Directions