Student Loan Refinance

Take control of your student loan repayment! Refinance and consolidate your private and federal student loans (including PLUS loans) into one manageable loan, setting up one convenient payment.

The three-year pause on federal student loan interest and payments is 

coming to an end. Interest began accruing on September 1, 2023, and payments are set to resume in October. In order to ease federal student loan borrowers back into making payments, the U.S. Department of Education has introduced measures to assist borrowers. One way they’re doing this is with a 12-month “on-ramp” that will remove the threat of reporting delinquency for those who are not able to make payments. The government also has amended and added options for income-driven repayment (IDR) plans which adjust monthly payments based on income levels.

What is the on-ramp period?

Normally if you do not make your student loan payments, it will be reported to credit bureaus and negatively affect your credit score and history. According to the Department of Education, the on-ramp time period – lasting through Sept. 30, 2024 – protects borrowers from having a delinquency reported to credit reporting agencies. (Only loans eligible for the original payment pause will be eligible for this provision.)

What are income-driven repayment plans?

Income-driven repayment (IDR) plans calculate monthly student loan payment amounts based on your income and family size. These plans should lower your monthly federal student loan payment if you qualify. Keep in mind that utilizing an IDR plan may extend the repayment period of your loan, meaning you will pay less each month but more in interest over the life of your loan.

Currently there are four types of IDR plans, and each requires payments with a different percentage of your discretionary income. The plans vary in length of repayment terms, from 20 to 25 years; any remaining loan balance is forgiven if your federal student loans aren’t fully repaid at the end of the repayment period.

To qualify for an IDR plan, you will need to provide proof of income and your family size to your servicer. This information must be recertified each year.

Is student loan refinance still an option?

To simplify your student loan repayment, you may want to consider Federal Student Loan Consolidation, to find more about student refinancing options visit us at https://www.mscu.net/student-loan-referral-program. These options could mean you’ll have one payment rather than multiple payments, or you could potentially lower your interest rate or monthly payment. You will want to weigh your options carefully, however. If you qualify for an IDR, it would likely be the best option for both lower payments and the possibility of having balances forgiven later.

MSCU has partnered with Credit Union Student Choice to provide our members with fair-value private student lending solutions!

The Credit Union Student Choice online marketplace connects you with credit union-funded private student loan and refinance options to help cover higher education costs.

We stand by our members and their families, as we understand the importance of financial independence!