The Pros and Cons of MBA Student Loan Refinance

Pros and Cons of MBA Student Loan Refinance

BIG Ideas:

  • You can consolidate multiple federal and private loans into one private loan by refinancing your MBA student loan debt.
  • An MBA student loan refinance may help you lower your monthly payment, shorten the term of your loan, and free up money to help you meet life’s goals.
  • When you refinance federal loans with a private loan, you will no longer be eligible for public loan forgiveness and other federal loan benefits.

As an expert with an MBA, you know that numbers can tell a story. So, if the amount of your monthly student loan payments is too high, it’s telling you that it may be time to do something about it.

If you have a good credit score, you can refinance your MBA student loan debt with a private lender.

But before you take that step, you should understand the advantages and disadvantages of MBA student loan refinancing. Let’s take a closer look.

PROS:

  • Lower your monthly payment. An MBA student loan refinance could help you get a better interest rate, which could lower your monthly payments. To estimate how much you could save by refinancing your MBA student loans with Brazos, use our Student Loan Refinance Calculator.
  • Lengthen the term of your loan. If you’re strapped for cash and want to lower your monthly student loan payment, you could extend the term with an MBA student loan refinance. Just remember that it could result in your paying more in interest over the life of your loan.
  • Consolidate multiple loans into one loan. You can refinance multiple undergraduate or graduate student loans (private and federal loans) into one loan with one payment that simplifies your financial life. Just remember you may lose federal benefits by refinancing or consolidating a federal student loan into a private refinance loan.
  • Free up money for other goals. Refinancing to lower your MBA student loan monthly payments can help you reduce your overall debt to free up money for other financial goals, such as buying a home, starting a family, or kick-starting a business.
  • Remove your co-signer. We all appreciate people who believed in us so much that they co-signed our student loans. If you have a good credit score, it’s possible that you can qualify on your own without a co-signer. By refinancing, you may be able to let your co-signer off the hook and assume responsibility for repayment on your own. Now, that’s TRUE adulting. Just remember that adding a cosigner to a refinancing loan may allow you to qualify for a lower interest rate.

CONS:

  • Loss of federal loan benefits. When you refinance federal student loans, you’ll lose benefits, including income-driven repayment plans, forbearance, and public service loan forgiveness.
  • Strong credit is required. If you don’t have strong credit, you may need to get or retain a co-signer to help you qualify for an MBA student loan refinance.

Weigh the benefits of refinancing

In summary, before you decide on MBA student loan refinance, you’ll need to ensure you:

  • Don’t plan to take advantage of federal loan benefits like loan forgiveness and income-driven repayment.
  • Have a strong credit score or a co-signer who has one. Stay on top of your credit score. You can get one free copy of your credit report every year by clicking. Learn more Smart Ways to Improve Your Credit Score.
  • Get an interest rate on your private loan that is lower than the rates on your current loans.

Brazos can help make refinancing easy

For more than 40 years, Brazos Higher Education has been helping make education more affordable for students and parents. As a Texas non-profit, we can offer you savings on a range of student loans and guidance to help you achieve the bright financial future you’ve worked so hard to build. Contact us today!