Student Loan Survey: Borrowers Are Afraid To Refinance

MoneyTips

By Amy Beardsley

When it comes to student debt, more than half of borrowers are struggling to make their payments. Refinancing your student loan is an excellent option to lower your monthly bill or to pay less interest over the life of your loan.

Even though refinancing could make student loan debt more manageable, the latest survey by Student Loan Planner found that 85% of borrowers are afraid to refinance their student loans. Why do borrowers fear refinancing when it could save them thousands of dollars?

According to the survey, half of borrowers didn’t know you can refinance more than once and 65% of respondents haven’t refinanced their student loan at all. Two-thirds of respondents can’t name more than two refinancing companies, while almost half (40%) of borrowers who did refinance shopped at only one place.