If you’ve been following the news about federal student loans, you’ve probably heard that the SAVE (Saving on a Valuable Education) repayment plan is undergoing significant changes. For many borrowers, that means questions about monthly payments, interest, and what comes next.
While every borrower’s situation is unique, now is an excellent time to review your student loan(s) and determine whether your current repayment strategy still aligns with your financial goals.
What’s Happening with the SAVE Plan?
Recent changes to the federal SAVE repayment plan have left many borrowers uncertain about their next steps. Depending on your situation, you may see changes to your repayment options, monthly payment amount, or eligibility for certain benefits.
If your payments are increasing or you’re looking for greater predictability, it may be worth exploring all your available options.
Is Refinancing Right for You?
Refinancing isn’t the right choice for everyone, but it can be a smart financial move for borrowers who:
- Have private student loans.
- Have federal student loans but don’t plan to use federal forgiveness or income-driven repayment programs.
- Have improved their credit since taking out their loans.
- Want to simplify multiple student loan payments.
- Are looking for a lower interest rate or different repayment term.
Before refinancing federal student loans, it’s important to understand that doing so converts them into a private loan. This means you’ll no longer have access to federal benefits, including income-driven repayment plans, federal deferment and forbearance options, and federal loan forgiveness programs. Be sure to carefully consider your long-term financial goals before deciding. You can find helpful information at www.studentaid.gov.
How Dakotaland Federal Credit Union Can Help
If you’ve reviewed your repayment options and determined that refinancing aligns with your financial goals, Dakotaland Federal Credit Union is here to help. Through our partnership with LendKey, our Student Loan Consolidation program can simplify repayment by combining eligible student loans into one convenient monthly payment. You may also qualify for a competitive interest rate that better fits your budget, along with flexible repayment terms that let you choose between paying your loan off faster or keeping your monthly payment lower.
Refinancing through Dakotaland also comes with benefits designed to make managing your loan easier. There are no origination fees, and you can complete your online application in as little as five minutes. Once your loan is established, you’ll have access to an online portal where you can check your balance, make payments, and manage your account anytime, and eligible borrowers may qualify to release their cosigner after making 12 consecutive on-time, full principal and interest payments. You can refinance up to $125,000 in undergraduate student loan debt or $250,000 in graduate student loan debt.
Not sure whether refinancing is the right move? Our Certified Credit Union Financial Counselors (CCUFCs) are here to help you evaluate your options and determine what makes the most sense for your financial situation. Whether you’re considering refinancing, consolidating debt, or simply looking for guidance, our team is committed to helping you make an informed decision. Find a Financial Counselor and learn more about our Debt Management and Consolidation services here.
Take the Next Step
Changes to student loan repayment can feel overwhelming, but you don’t have to navigate them alone.
If refinancing fits your financial goals, Dakotaland’s Student Loan Consolidation through LendKey can help simplify repayment and potentially lower your interest rate.
To learn more about Student Loan Consolidation and apply, click here.
