Federal Family Education Loan
Daughter has been paying on student loans for over 20 years. She has a doctorate in Psychology and has worked as a professor at a university in California and is now a school psychologist. She has a $50,000 FFEL loan balance and needs to pay it off in 10 years as she will be 50 next year.
She understands there is no forgiveness for this type of loan. First Tech Federal Credit Union is offering to refinance her loan at 3% . Does she have any other options?
Terry Says
She should have refinanced to a lower rate long ago. It’s estimated that more than half of student loan borrowers 10years after graduating owe more than they originally borrowed because of high interest rates.
One exception to refinancing: If she works for a non-profit, she could have taken advantage of the Public Service Loan Forgiveness program. (Read the recent article on my website for details.) She might do that after taking advantage of existing programs to reduce her monthly payments IF she qualifies for 10 years of on-time payments so her loan balance can be forgiven. She can’t do that if she refinances.
