Hoboken, New Jersey, Jan. 17, 2018 (GLOBE NEWSWIRE) -- According to LendEDU’s data from 2017, refinancing student loan debt has become much more difficult as compared to 2016.
Around this time last year, LendEDU released its inaugural State of Student Loan Refinancing Report that analyzed user data from 2016. That report found the average approved refinance applicant had a FICO credit score of 757 and that 43 percent of all applicants were denied during the refinance process, amongst many other things.
This year, the results are much more bleak for student loan borrowers attempting to refinance their debt. Based on the analysis of LendEDU’s 2017 applicant data, the refinance denial rate climbed, as did the average credit score of an approved applicant. But, the report also found that more approved applicants were going on to complete the refinance process, the average amount of student loan debt refinanced was higher, and borrowers were getting longer repayment terms after refinancing.
Refinancing can be an effective way to lower the burden of student debt that plagues so many young consumers. If approved for refinancing, borrowers may receive lower interest rates and/or longer repayment terms, and can consolidate multiple loans into one.
LendEDU’s CEO and Co-Founder Nate Matherson issued the following comment: “At LendEDU we work to bring the most transparent data in front of consumers. Student loan refinancing is a great opportunity for millions of Americans to save money on their debt. We hope our unique insights will help consumers make more educated decisions when it comes to their student loans.”
Highlights from the report:
- The average FICO credit score of an approved applicant was 764, compared to 757 last year
- 58% of all applicants were denied for student loan refinancing, as opposed to 43% last year
- The average interest rate received after refinancing student loan debt was 5.56%, compared to 4.82% last year
- The average amount of student loan debt refinanced was $66,453, while last year it was $53,892
The results of this report were derived from over 32,000 refinance applicants that came through the LendEDU website in 2017. This applicant data was collected from LendEDU’s lender partners, including SoFi, Citizens Bank, College Ave, Earnest, LendKey, CommonBond, Laurel Road, and ELFI.
The eight aforementioned companies make up the majority of the student loan refinancing market. The application data was weighted based on the proportion of applicants.
About LendEDU
In 2014, LendEDU launched as marketplace for student loans and student loan refinancing. LendEDU helps graduates find the lowest student loan quotes with one application. Today, LendEDU helps consumers compare a number of personal finance products including student loans, personal loans, credit cards, and banking products. LendEDU works to create engaging resource content, industry leading news, and tools to create transparency for consumers.
LendEDU was founded by Nate Matherson and Matt Lenhard in August of 2014. LendEDU is a graduate of Y Combinator’s W16 class, the Iowa Startup Accelerator, and the Horn Program at the University of Delaware.
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