Missouri Student Loans: Refinancing and Private Student Loan Options – Student Loan Planner

In the US, there are two main types of loans to pay for college: federal loans and private loans. Unlike federal loans, private loans generally have a higher interest rate than federal loans. The Federal student loan interest rate is 6.8%, while private loan interest rate is between 8-15%+ for undergraduates. However, many students opt for private student loans because they offer more flexible underwriting, allowing students to borrow more money and at a lower interest rate than federal loans.

Student loans can be a big burden once you leave college.  And the problem only gets worse the longer it takes you to pay them back.  The government can garnish your wages if you fall behind on your payments, which means you could end up paying back a lot more than you borrowed. One way to avoid those nasty penalties is by refinancing your student loans.  After all, a lower interest rate and better terms are always a good thing, right? You might also consider getting a private student loan.  These loans aren’t actually issued by the government, so you won’t have to worry about having your income garnished.  But private student loans often come with their own set of rules and

Missourians are aware of student loan debt. More than half of Missouri’s college graduates have student loan debt, mostly federal loans. As of June 2020, Missouri had 802,300 student borrowers with outstanding debt.

A large amount of debt resulting from a student loan can have a devastating effect on your finances and get in the way of other life and financial goals you have. Read on to learn more about student loan debt in Missouri and the refinancing and private student loan options available to Missouri residents.

Missouri State Student Loan Debt

Missouri residents have their share of student loan debt. Currently, 57% of four-year college graduates in Missouri have student loan debt. Graduates in the state have an average debt of $28,740.

The state average is well below the national average of $39,351, but that’s still a significant amount of debt to pay off.

An overview of student loans in Missouri:

  • The average debt of graduates is $28,740.
  • Percentage of students who are late 57%.
  • Share of debt from private loans 17%.

FoodAnother important factor to consider is the cost of living in Missouri. The cost of living index compares the standard cost of an average person in each state. The costs included in the cost of living index are as follows:

  • Housing
  • Transport
  • Utilities
  • Clothing
  • Education
  • Health
  • Children
  • Entertainment

According to a study by the Missouri Center for Economic Research and Information, Missouri has the fifth highest cost of living in the United States. Missouri’s cost of living index for 2020 was 89.1, well below the national average of 100.

The good news for borrowers living in Missouri is that the low cost of living means you can spend more of your income paying off your student loan debt.

What Missouri borrowers need to know

Of course, how much you can pay off of your debt doesn’t just depend on your spending. It also depends on your career path and salary.

For certain professions, such as. In the health sector, for example, the labour market is oversaturated. Since there are more job seekers than job openings in the healthcare industry, this results in lower wages, which are therefore not as high as in other states.

In addition, healthcare workers succeed with higher credit scores than other professions. Paying off large credit debts can be more difficult in Missouri than in other states. This doesn’t necessarily mean you should move to another state with a higher average salary – it’s just something to consider when making future plans.

Missouri Student Loan Refinancing

Refinancing student loans is one way to deal with debt. Depending on the type of rate you qualify for, you could potentially save thousands of dollars in interest over the life of your loan.

An online search for student loan refinancing in Missouri will provide you with a list of lenders in the state willing to help you. Unfortunately, state-specific borrowers and credit unions typically offer higher interest rates than the most popular national borrowers.

You’ve probably heard of the Missouri Higher Education Loan Authority, or MOHELA. Although based in Missouri, the company is one of the few that deals with federal loans and does not offer student loan refinancing. In fact, MOHELA can be your credit broker.

While MOHELA cannot help you refinance your student loan, the following lenders can:

Another option is to check interest rates on Credible, an online lending site. Credible’s rate check does not affect your credit history and also allows you to check rates with multiple lenders at the same time.

If you are putting off refinancing because of your credit history, remember that there is no limit to how many times you can refinance your student loans. If you have a lower interest rate now and decide to refinance, when your credit rating improves you can refinance again at an even lower interest rate.

Use our student loan refinancing calculator to see how much money you can save by refinancing your student loan.

Missouri private student loans for current students

Current and prospective Missouri students have options other than federal student loans. Regardless of your field of study or the school you choose, chances are you’ll need more than just government aid to pay your tuition.

Of course, government support should always be your first option – grants and scholarships first, then government loans. Federal loans are guaranteed by the government and protect borrowers through programs such as income-driven repayment plans, deferral options, and loan forgiveness.

However, private student loans are a good option to fill the gap when federal funds run out and the school balance is yet to be paid. Whether you’re pursuing an undergraduate or graduate degree, there are private loans available to help you cover the costs of your education.

Credit requirements for private student loans in Missouri

To get a private student loan, you generally need to have a good or excellent credit history. Unfortunately, most students are not able to get credit on their own because they have not had the time to build a credit history. The good news is that most lenders will allow you to apply for a personal loan with the help of a guarantor, for example. B. a parent or grandparent in good credit standing.

Results for student loan borrowers in Missouri

Student loan debt should not be a burden. Missouri borrowers have ample access to student loan refinancing, allowing them to retire their debt faster.

You can also work with one of our student loan advisors to create a personalized action plan for your student loan repayment.

A plan for a student loan

Refinance your student loan and receive a bonus in 2021.

BONUS of $1,000 for 100,000 or more. 200 for 50,000 to 99,999¹.

variable 1.99% – 5.64% APR1
fixed 2.98% – 5.79% APR1

1,050 bonus2 for $100k+. 300 bonus for 50k to 99k.2

BONUS of $1,250 for 250k+, tiered bonus of 300 to 500 for 50k-250k.3

1,275 BONUS4 For $150,000 or more. Multi-level bonus from 300 to 575 for 50k to 149k.4

variable 2.39% – 6.01% APR4
fixed 2.79% – 5.99% APR4

1,000 BONUS5 for $100,000 or more. 200 for $50,000 to $99,9995.

variable 2.25% – 6.64% APR5
fixed 2.99% – 6.64% APR5

1,250 BONUS6 for 100k+ or $350 for 5k to 100k.6

1,250 BONUS7 For $150,000 or more. Multi-level bonus from 100 to 400 for 25k to 149k.7

variable 1.91% – 7.69% APR7
fixed 2.95% – 8.49% APR7

Not sure what to do with your student loan?

Take our 11-question quiz to get personalized advice on PSLF, IDR, or refinancing (including information on which lender we think can offer the best interest rate).

Do our questionnaire.

1Earnest: $1,000 for $100,000 or more, $200 for $50,000 to $99,999.99. For Earnest, if you refinance $100,000 or more through this site, $500 of the $1,000 cash bonus will be provided directly by Student Loan Planner. In the above price range, an additional discount of 0.25% is included for automatic payment Information on income.

2General promissory note If you refinance over $100,000 through this website, $500 of the above cash bonuses will be provided directly by Student Loan Planner. General Bond Disclosure.

3Laurierweg: If you refinance over $250,000 through our link and Student Loan Planner receives the loan, a $500 cash bonus will be paid directly to Student Loan Planner. If you are a member of a professional association, Laurel Road can offer you the choice of a reduced interest rate or the $300, $500 or $750 cash bonus mentioned above. The Laurel Road proposals cannot be combined. The above price range includes an additional 0.25% discount for automatic payment. Laurel Road Revealed.

4Elfie: If you refinance over $150,000 through this website, $500 of the above cash incentives will be provided directly by Student Loan Planner. Uncover Alfie.

5Sofi: If you refinance $100,000 or more through this website, $500 of the $1,000 cash bonus will be provided directly by Student Loan Planner. The above price range includes an additional 0.25% discount for automatic payment. Disclosure of information about Sofi.

6Valid: If you refinance over $100,000 through this website, $500 of the above cash bonuses will be provided directly by Student Loan Planner. Reliable dissemination of information.

7LendKey : If you refinance over $150,000 through this website, $500 of the above cash incentives will be provided directly by Student Loan Planner. The above price range includes an additional 0.25% discount for automatic payment.

This source has been very much helpful in doing our research. Read more about private student loan forgiveness covid and let us know what you think.

Frequently Asked Questions

Is SoFi the same as Missouri Higher Education?

As the Missouri Higher Education department is well aware, student loans are not the only financial aid that students can take advantage of. Today, we’re going to talk about the student loan refinancing company SoFi. If you’re not familiar with SoFi, it’s a company that specializes in refinancing student loans. They work by connecting students who are looking for lower interest rates with lenders who are willing to offer more competitive rates. This means that you can combine all your existing loan debt into one loan and get a much lower interest rate than you would with other lenders.

SoFi is a peer-to-peer lending company that aims to “bring the world together through finance”. The company’s name stands for “Social Finance”, and it was founded in 2011 in San Francisco, California. This makes it a relatively new company, but it already has over $10 billion in assets under management. The company’s main focus is on student loans, but it also provides other financial services to consumers.

Will private student loans be forgiven 2020?

In the United States, we have seen a steady increase in the amount of student loans being issued over the past decade. By 2010, the total debt owed by American students neared $1 trillion. This number has continued to grow with no signs of stopping. This is worrying, since according to a recent report issued by the Consumer Financial Protection Bureau, up to 25% of borrowers are not expected to fully repay their student loans, potentially costing taxpayers billions of dollars.

In 2010, Congress changed the bankruptcy laws to make it harder for student loan debtors to discharge their student loans in bankruptcy. Previously, private student loans were like any other private debt—meaning there were no income restrictions or credit checks and they could be discharged in bankruptcy if the borrower was facing “undue hardship”. As of 2010, if you have any private student loans, you will need to prove that repaying your student loans will “impose an undue hardship on you and your dependents” in order to have your loans discharged.

Does Sallie Mae refinance student loans?

Sallie Mae is a lending organization that will lend students money for college, and give them the option to refinance their loan. Because student loans only have a certain number of years that they can be paid off, you can refinance with Sallie Mae to be able to pay out your loan within a shorter time period. All federal student loans are eligible to be paid out over a shorter period of time. Typically, your repayment period will be between 5 and 20 years, depending on how much you owe, and how much you want to repay.

Sallie Mae is the largest private student loan lender in America. It provides a variety of student loans to students and parents of current and former students. These loans are backed by the federal government, and the company provides student loan services to more than 12 million customers.


About the Author: Prateek

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