ELFI Study Reveals Impact of Student Loan Refinancing on Borrowers’ Financial Health
October 25, 2023Education Loan Finance, a nationwide private student loan and refinancing lender, recently surveyed customers who refinanced some or all of their student loans between 1/3/23 and 3/1/23.
The survey revealed that the majority of customers experienced significant savings on either a monthly or long-term basis, and that refinancing positively impacted their financial health and circumstances
With concern about repaying student debt on the rise, borrowers refinancing their loans with ELFI show positive progression in their repayment journey, according to a survey released today by ELFI.
ELFI’s third annual survey recorded customer responses about their experience refinancing student loans and the effects on their financial health.
The survey findings reveal that refinancing student loans with ELFI can lower monthly payments, accelerate borrowers’ repayment timelines, and decrease the negative lifestyle impacts of student loans.
Among customers who decided to refinance, many noted that student loans were negatively impacting their financial lives. The most notable negative impacts reported included reductions in dining out (63.76%), decreased retirement savings (61.74%), and delays in purchasing a home (57.05%) or vehicle (44.97%).
The survey confirms that refinancing student loans helps customers save, with customers reporting an average of $277.89 saved per month. Moreover, 79.3% of customers recorded lower monthly payments after refinancing with ELFI. Over the entirety of their loan term, ELFI customers’ projected savings of $20,773.86 on average.
Furthermore, ELFI customers displayed positive trends in the areas shown to be negatively impacted by student loans. Through refinancing, customers reported that they were able to buy homes (24%), start saving for retirement (27.52%), or even get married (11%).
Alongside the savings discovered, the survey showed that 52% of ELFI customers expect to pay off their student loans faster after refinancing. These results indicate that borrowers refinancing with ELFI experience improvement in their financial well-being by having a shorter repayment period.
In publishing this survey’s discoveries, ELFI hopes to showcase the benefits of refinancing student loans on borrowers’ financial health. Following the survey’s end, ELFI encourages prospective borrowers to consider their situation and finances when deciding whether or not to refinance.
“We hope this study can provide those looking to refinance with comprehensive insights and real-life experiences surrounding how refinancing could look for them,” adds Barbara Thomas, SouthEast Bank COO and head of the ELFI Division. “We strive to continue helping borrowers manage their student loans responsibly.”