Why Those Millennials With Tons of Loans Won’t Refinance
They don’t trust the banks. And besides, a lower rate isn't always worth giving up flexibility.
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Staring at a subway advertisement, Steve Rousseau pondered upending the delicate balance of his personal budget. The ad promised a lower interest rate and smaller payments for student debtors who were willing to refinance. Rousseau, 27, is five years out of college. He has about $15,000 left to pay on private and federal loans that helped fund a diploma from Hofstra University. What to do?
Weeks after seeing the promotion, he has chosen to do nothing. “Going to the private sector for financial advice, especially with student debt, feels fraught,” he explained. “There aren’t government resources that could clearly explain the proper way to manage student debt that would be more trustworthy.”