Average student loan debt balance of 25-34 borrowers
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25-34 year olds make up the largest cohort of student loan borrowers, totaling up to 14.8 million borrowers in total. The average individual in this age group has a student loan balance of $ 33,817.56, according to statistics from the US Department of Education Q4 2020 data.
While that number is just below what the average student loan borrower of all ages carries ($ 39,351), that’s more than double what the 24-and-under cohort faces (their average balance is $ 14,807.69).
The increase in outstanding debt can be attributed in part to the additional years of interest paid by 25-34 year olds compared to those under 25, as well as additional loans they may have taken out to finance additional studies.
If you’re in the 25-34 age group and have five-figure (or more) debt, you can take comfort in knowing that it’s not too late to get rid of it. Upstream, Select offers you some advice on managing your student loans.
Here’s what student loan borrowers aged 25 to 34 should consider
Your mid-twenties and early thirties mark an important chapter in your adulthood – whether you’re advancing your career or getting married and planning a family – and these are a good times to prioritize a repayment plan for your family. student debt.
For example, as you advance in your career, your salary may allow you to make more than the minimum payment on your monthly student loan bill. As you get married and prepare to start a family, now is the time to focus on reducing your student loan debt before you tackle competing expenses, like a monthly mortgage payment and child care. children.
A way of to pay off your student loans faster is to refinance them through a private lender. Borrowers with good credit can probably get a lower interest rate and also choose their new loan repayment term.
If you have the extra funds to spend more money on paying off your debt, you can shorten your loan term from 10 to five years, for example, or whatever makes sense for your finances and your balance. ready. A shorter time frame would mean higher monthly payments, but with a lower interest rate and shorter loan term, you can speed up debt repayment and save money in the long run.
Select has ranked the best student loan refinance options to help streamline your search. They all offer a wide choice of loan terms and interest rates, charge no application or origination fees, have no prepayment penalties, and offer flexible repayment terms, payment options in the event of a loss. economic hardships and automatic payment interest rate reductions. (See our methodology for more information on how we chose the best student loan refinancing companies.)
We do not recommend that federal student loan borrowers refinance while the payment and interest freeze is in effect, currently until September 30, 2021. Once the federal student loan hiatus is over, think about what federal protections you will lose if you choose to refinance privately. Private student loan borrowers, on the other hand, should consider refinancing if their interest rate is high, especially in this low rate environment.
To determine which student loan refinancing companies are best for borrowers, Select private student loan financing analyzed and compared from national banks, credit unions and online lenders. We’ve refined our ranking by only considering those that offer low student loan refinance rates and prequalification tools that don’t hurt your credit.
While the companies we chose in this article consistently rank among the most competitive interest rates for refinancing, we also compared each company on the following characteristics:
- Wide availability: All of the companies on our list refinance both federal and private student loans, and each offers variable and fixed interest rates as you choose.
- Flexible loan terms: Each company offers a variety of financing options that you can customize based on your monthly budget and how long it takes to pay off your student loan.
- No creation or registration fees: None of the companies on our list charge borrowers an upfront “set-up fee” for refinancing your loan.
- No prepayment penalty: The companies on our list do not charge borrowers for prepayment of loans.
- Simplified application process: We made sure companies offered a fast online application process.
- Co-signer options: Each company on our list allows a co-signer if the direct borrower does not qualify for refinancing on their own.
- Automatic payment discounts: All of the companies listed already calculate automatic payment discounts in their advertised rates.
- Private student loan protections: While you lose the benefits of the Federal Student Loan when you refinance, each company on our list offers some type of protection for borrowers in times of financial difficulty.
- Loan sizes: The above companies refinance loans in a range of sizes, from $ 5,000 to $ 500,000. Each company advertises their respective loan amounts, and completing a pre-approval process can give you an idea of your interest rate and monthly payment.
- Credit / eligibility conditions: We took into consideration the minimum credit scores and income levels required if this information was available.
- Customer service: Each company on our list provides customer service that is available by phone, email, or secure online messaging. We have also opted for lenders who have an online resource center or advice center to help educate you about the student loan refinancing process.
After reviewing the features above, we sorted our recommendations based on overall refinancing needs, having a co-signer, applying with a fair credit score, refinancing parent loans, and medical school loans. .
Note that the rates and fee structures for refinancing private student loans are not guaranteed forever; they are subject to change without notice and they often fluctuate with the Fed rate. Choosing a fixed rate APR when you refinance will ensure that your interest rate and monthly payment will remain consistent throughout the life of the loan.
Your refinance rate depends on your credit rating, income, debt-to-income ratio (DTI), savings, payment history, and overall financial health. To refinance your student loan (s), lenders will conduct a serious credit check and request a full application, which may require proof of income, identity verification, proof of address, etc.
Editorial note: Any opinions, analysis, criticism or recommendations expressed in this article are the sole responsibility of the editorial staff of Select and have not been reviewed, endorsed or otherwise approved by any third party.