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Student Loan Refinancing

What You Could Afford With an Extra $309/Month By Refinancing Your Student Loans

September 26, 2019

One of the best ways to lower your monthly student loan payments is by refinancing your existing loans at a lower interest rate, a longer term, or a combination of both. You can refinance just one loan or consolidate a bunch of loans into one single payment plan. Here’s an important statistic you should know: ELFI student loan refinance customers have reported that they save an average of $309 per month1. Just imagine what you could do with an extra $309 every month. 

 

The Fun Stuff

While refinancing your student loans is normally a decision you make to propel yourself toward financial freedom, you might want to use your extra cash on the little things that make life fun. Here are some ideas:

 

  • Indulge your coffee fix – A Grande Latte before work every day will run you around $76 each month. If you absolutely need to have a Caramel Macchiato, you can splurge to about $93 per month.
  • Take your significant other to a movie every weekend – Movies are expensive, especially if you live in a big city. Movies for two will cost you upwards of $100 per month, not including dinner before or after the show.

 

Upgrade Your Lifestyle

An extra $309 per month saved by refinancing your student loans is a nice chunk of change, so maybe you should use it more wisely to really improve your lifestyle. Here are some suggestions:

 

  • New Apartment – Are you fed up with living in a tiny studio apartment where you have to maneuver your Murphy bed into the wall to free up space when you have friends over? An extra $300+ every month could go towards a nice one-bedroom apartment with plenty of room for a dog.
  • Transportation – Are you still driving around in that used car your parents bought for you when you went to college? Is it on its last leg? Are you wondering what on earth you’re going to do when it finally gives out? You could use this extra cash on car payments for that new vehicle you’ve had your eye on. 

 

Empower Your Financial Future

Let’s suppose you choose not to spend the money you saved by refinancing your student loans, but instead use it to enhance your financial future. What might this involve? Here are three ideas.

 

  • An Emergency Fund – No one is immune to financial emergencies. You never know when your company might have layoffs, and you suddenly find yourself out of a job. Knowing that you have some cash laid aside for such a possibility will make you feel more secure. A good rule of thumb is to have enough money put aside in a savings account to cover anywhere from three to six months of living expenses. An emergency fund can also come in handy when you find yourself with an unplanned burden, such as your car breaking down or your beloved pet needing to see the vet. If you don’t have savings to tap into, you’ll likely have no choice but to ask friends and family for cash or resort to credit card debt.

 

  • Invest for Your Retirement – Ok, this doesn’t sound very exciting, and you’re only in your twenties, so you may ask, “Why should I be thinking about retirement?” However, the earlier you begin to save for retirement, the more your money will grow thanks to the magic of compounding interest. Here’s an example demonstrating how someone who begins to set aside funds at age twenty-five has more money at retirement compared to someone starting at age thirty-five who contributes three times as much. Think about setting up automatic contributions so that a portion of every paycheck goes into your 401(K) or similar retirement account.

 

  • Pay Off Your Student Loans Quicker Many college graduates expect to be paying off their student loans well into their 40s. If you find this prospect alarming, you should consider putting the $309 you save every month with ELFI toward paying off your loans. Paying off your student loans early can save you a significant amount of money, as you will be cutting your interest costs. You’ll also avoid the stress that often comes with being in debt.

 

 

How to Have an Extra $309 in Your Pocket Every Month

Having read this far, you are probably intrigued and excited at the prospect of refinancing your student loans and saving money on your monthly student loan payments. You probably also have your own ideas of how you might choose to spend the extra cash. However, the first step is to get in touch with ELFI to explore the various refinancing options available to you.* Talk to us today and start saving!

 


 

*Subject to credit approval. Terms and conditions apply.

1Average savings calculations are based on information provided by SouthEast Bank/ Education Loan Finance customers who refinanced their student loans between 8/16/2016 and 10/25/2018. While these amounts represent reported average amounts saved, actual amounts saved will vary depending upon a number of factors.

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Education Loan Finance by SouthEast Bank is not responsible for and has no control over the subject matter, content, information, or graphics of the websites that have links here. The portal and news features are being provided by an outside source – The bank is not responsible for the content. Please contact us with any concerns or comments. 

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2020-08-05
How to Ask Your Employer to Help Pay Student Debt

These days, employers offer all kinds of benefits to keep employees, from kombucha on tap and innovative new office spaces to ping pong tables and video game rooms. The list of benefits seems to grow all the time.   When you think about it, though, how much do you really need that kombucha on tap? Instead, what many graduates need is help with their ever-mounting student loans. In combination with other methods of dealing with student loan debt, employers can play a valuable role in ensuring their employees’ financial stability.   Employers are beginning to recognize this trend, as well. That’s why some have begun to offer help to employees with student loan debt. While an uncommon practice at the moment, some companies now offer options to help employees pay back their student loans.   The practice is rapidly becoming more popular, and if you’re lucky, your employer may already offer a student debt relief program. Here are several ways employers are already helping to reduce their employees' student loan debt.  

Financial Education

Employers have begun to understand that their own financial success is tied to the financial success of their employees. As a result, some employers have begun to offer financial education opportunities.   These opportunities come in many forms, including workshops, webinars and even counseling. While many employees already have a firm grasp on financial concepts, these programs can still be incredibly beneficial to those weighed down by student debt as they often cover lesser-known tactics and reinforce familiar strategies.  

Student Loan Repayment Signing Bonuses

Another method of helping employees with student debt is the signing bonus. For example, some companies offer $1,000 towards student loans for new hires. This $1000 can drastically reduce the amount graduates pay in interest over the life of their student loans and is an effective way for companies to hire and keep dedicated, hardworking employees.  

Employer Repayment

The most exciting benefit employers are beginning to adopt is direct assistance with student loans. Now, in addition to savvy fiscal advice, some companies are backing up their support with dollars and cents.   A few companies now offer yearly bonuses to help pay back student loans. One of the most generous of these companies is Nvidia. Employees earn $6,000 a year towards their student loans up to a $30,000 maximum. Several companies offer comparable or lower amounts. Regardless of the repayment amounts, this innovative strategy provides a new way to fight back against student debt.   A variation of this policy is occasionally used, as well. In this variation, employees who don’t take their PTO can trade their PTO days for student loan assistance. With many in the United States not taking their PTO days anyway, this is a compelling option for student loan borrowers.  

Contributions to 401(k) Plans

It may seem strange for 401(k) contributions to go hand-in-hand with paying off student debt. You might even expect to have to choose between them.   If you’re employed by Abbott Laboratories, though, you don’t have to choose. Employees who contribute at least 2% of their pay toward student loans are eligible for the full 5% employer matching in their 401(k), even if they do not otherwise contribute to their 401(k). Abbott Laboratories is the first company to offer this incentive to help employees to pay off student debt, and hopefully many companies will follow in their footsteps.   Sadly, these types of programs are not as commonly offered as they should be, but that isn’t necessarily bad news for you.   If student loan assistance programs are something that you would like to see at your company, then make an appointment to speak with either your boss or to human resources. In this day ¬¬¬¬¬and age, the competition for the best employees is fierce, and employers are always looking for ways to keep employees happy. In some cases, it may even be cheaper than a raise.   It’s also worth mentioning your interest in such programs while negotiating your salary and benefits package for a new job. They may include it as an additional benefit.   If your employer already provides these benefits, that’s fantastic! You’re already one step closer to being unburdened by student debt. If you're curious about how to finish the job and free yourself from student debt completely, one great way to do that is Student Loan Refinancing. You can learn more here.  
  Notice About Third Party Websites: Education Loan Finance by SouthEast Bank is not responsible for and has no control over the subject matter, content, information, or graphics of the websites that have links here. The portal and news features are being provided by an outside source – the bank is not responsible for the content. Please contact us with any concerns or comments.
young woman researching student loan refinancing requirements
2020-08-03
Income, Credit Score, and Credit History: Which is Keeping You From Refinancing?

If your goal is to become debt-free as quickly as possible, student loan refinancing can be a powerful tool for managing your loans. ELFI customers reported that they save an average of $272 per month, and should see an average of $13,940 in total savings after refinancing their loans with Education Loan Finance.1   By Kat Tretina   Unfortunately, not everyone qualifies for refinancing the first time they apply. When you submit your loan application, refinancing lenders look at your income, credit score, and credit history to determine whether to issue you a loan. If you don’t meet their requirements in just one area, the lenders will deny your application.    If you aren’t quite eligible for refinancing quite yet, here’s what you can do to improve your application so you can get approved in a few months — and qualify for a lower interest rate.  

Student Loan Refinancing Requirements

Borrower requirements can vary from lender to lender, and some lenders are very vague about their refinancing criteria. However, ELFI is different and has transparent eligibility guidelines.    To qualify for student loan refinancing with ELFI, you must meet the following
student loan refinancing* requirements:
    • You must be a U.S. citizen or permanent resident
    • You must be the age of majority or older 
    • You must have at least $15,000 in student loans to refinance
    • You must have a bachelor’s degree or higher
    • You must have a minimum income of $35,000
    • You must have a minimum credit score of 680
    • You must have a minimum credit history of 36 months
    • Your degree must come from an approved post-secondary institution and program of study
 

Tips for Improving Credit Score

ELFI’s minimum credit score for refinancing applicants is 680. If your score is less than that, you’re not alone. According to Experian, about 33% of Americans have a credit score under 670. However, that doesn’t mean you’re stuck with a poor credit score. By making some changes, you can boost your credit.    To improve your score, use these tips:   
  • Make all of your monthly payments on time: Your payment history makes up 35% of your credit score. To raise your credit, pay all of your bills and minimum loan payments on time. When possible, sign up for automatic payments to minimize the risk of missing payments. 
  • Sign up for Experian Boost: Experian Boost is a free service you can use to get credit for your cell phone and utility payments. On average, users who sign up improve their credit scores by 13 points. 
  • Keep your credit card balances low: Your credit utilization — or how much of your available debt you use — accounts for 30% of your credit score. Pay down existing debt and use your credit cards sparingly to bring up your score. 
  • Don’t open new credit accounts: Every time you open up new accounts, your credit score will drop. New credit makes up 10% of your credit score, so only open up a new account when you really need it. 
  • Review your credit report and dispute errors: Review your credit report for free at AnnualCreditReport.com and look for errors, such as fraudulent accounts opened under your name. If you see any issues, dispute them with the credit bureaus and have them removed from your credit report. 
   

How to Increase Income

If you’re a recent college graduate, your income may be less than the minimum required for student loan refinancing. To boost your earnings, consider these strategies:   
  • Ask for a raise: If you’ve been at your job for over a year or more and have done good work and received positive feedback, it may be time to ask for a raise. The average raise is 3.3%, which could give you the additional income you need to qualify for a loan. 
  • Learn new skills: If a raise isn’t possible due to the economy or because your company isn’t performing well, try to learn new skills that would allow you to secure a promotion or a new position at another company. 
  • Take on consulting work: If you have some extra time, consult or freelance on a part-time basis for additional income. For example, you could lend your social media expertise to startups, design marketing plans for entrepreneurs, or do graphic design work for local businesses. 
   

How to Build Credit History

If you don’t have a lengthy credit history, it can be difficult to qualify for a loan. To start building your credit history, follow these steps:   
  • Ask a friend or relative to add you as an authorized user to their credit card account: If you have a parent, relative, or friend with good to excellent credit, ask them if they will add you as an authorized user to their credit card account. When you become an authorized user, you get access to their credit history and credit line, instantly lengthening your own credit history. Just make sure you set guidelines on how the credit card should be used and how you’ll repay them for any purchases. 
  • Apply for a credit builder loan: With credit builder loans, you take out a loan, and it’s held for you in a savings account. You make payments toward the loan each month. After the loan is paid off, the lender releases the money to you, so it can help you build your savings, as well. Many financial institutions offer credit builder loans.
  • Open a secured credit card account: Without an established credit history, you may not qualify for a traditional credit card, but you can get a secured credit card account. With a secured card, you put down a security deposit that serves as your credit limit. As you make payments, your payment history is reported to the credit bureaus, establishing your credit and improving your credit score. 
   

Refinancing Your Student Loans

Improving your credit history, boosting your credit scores, and increasing your income can take time. But within six to 12 months, you can see results and meet ELFI’s refinancing requirements. By refinancing your loans, you can save money and pay off your debt ahead of schedule.    When you’re ready, you can get a rate quote without affecting your credit score.*  
  1Average savings calculations are based on information provided by SouthEast Bank/ Education Loan Finance customers who refinanced their student loans between 2/7/2020 and 2/21/2020. While these amounts represent reported average amounts saved, actual amounts saved will vary depending upon a number of factors.   *Subject to credit approval. Terms and conditions apply.   Notice About Third Party Websites: Education Loan Finance by SouthEast Bank is not responsible for and has no control over the subject matter, content, information, or graphics of the websites that have links here. The portal and news features are being provided by an outside source – the bank is not responsible for the content. Please contact us with any concerns or comments.
woman reading new about student loans
2020-07-31
This Week in Student Loans: July 31, 2020

Please note: Education Loan Finance does not endorse or take positions on any political matters that are mentioned. Our weekly summary is for informational purposes only and is solely intended to bring relevant news to our readers.

  This week in student loans:
white house

Trump: Student Loans May Be Suspended For “Additional Periods Of Time”

With a second stimulus package on the way, Trump has stated that student loan suspensions may be extended past the already in place deadline.  

Source: Forbes

 

GOP Coronavirus Relief Proposal

Here’s How the Latest GOP Coronavirus Relief Proposal Would Impact Student Loans

The GOP has released their coronavirus relief proposal, but experts claim that it is largely ineffective in helping student loan borrowers.  

Source: CNBC

 

student loan servicers

What to Know About Changes Coming to Student Loan Servicing

In an attempt to streamline student loan servicing, the US government has signed contracts with five companies to provide customer service and back-office support to federal student loan borrowers.  

Source: U.S. News & World Report

 

man researching whether to refinance student loans

Should You Refinance Student Loans? What to Consider as Legislators Debate New Stimulus Package

Refinancing rates are incredibly low, but due to the second stimulus package not yet being put in place, student loan borrowers are unsure of when the best time to refinance will be.  

Source: Newsweek

  That wraps things up for this week! Follow us on FacebookInstagramTwitter, or LinkedIn for more news about student loans, refinancing, and achieving financial freedom.  
 

Notice About Third Party Websites: Education Loan Finance by SouthEast Bank is not responsible for and has no control over the subject matter, content, information, or graphics of the websites that have links here. The portal and news features are being provided by an outside source – the bank is not responsible for the content. Please contact us with any concerns or comments.