Debt & Savings

Refinancing Student Loans Is Finally a Good Option for Borrowers

Private issuers say they’ve seen an influx of customers in the wake of the election as hope for debt forgiveness fades.

Photographer: Angela Lewis/Bloomberg
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The era of student loan refinancing may finally be here.

For years, rates on government loans didn’t matter because pandemic-induced payment forbearance meant interest wasn’t accruing. Plus, refinancing turns a federal loan into a private one, and private loan issuers weren’t subject to the moratorium. That debt also isn't eligible for government forgiveness programs.