Does refinancing a student debt make sense? We are thinking about it mostly to avoid dealing with NelNet any more. They consistently reject payments and offer a pitiful lack of customer support. I filed a report about them with the BBB, but I haven’t heard back yet.
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Dealing with NelNet’s poor service is frustrating, but refinancing your debts is not easy. Refinancing can result in lower interest rates and easier payments, but you will lose perks from government loans. If NelNet’s service is poor, consider different lenders; however, keep in mind that you may lose protections and forgiveness programmes. Consider all of your possibilities before making a decision.
It’s expected that rates will continue to decline during the coming year. You’ll probably be thinking about refinancing again in a year, and if not, you’ve broken even by then. So, if you save $350/month and it costs you $3k to refinance, that makes sense.
It’s a risk depending on how long you expect rates will stay low and how much refinancing will set you back.