Struggling with Student Loans?
Student Loan Refinancing
Millions of borrowers are facing default on their student loans
As Americans continue to navigate increased costs of living, student loans continue to burden borrowers—and the government is preparing to take more aggressive steps to collect. The seven million borrowers enrolled in the Saving on a Valuable Education (SAVE) plan will soon need to choose a new plan.1 More than five million borrowers are already in default, and this number is only expected to grow.2
Student Loan Refinancing Could Save You Thousands
Choose from a range of refinancing options and receive a special rate discount. Medical resident and fellow programs are available.
If you are one of the millions of Americans who is struggling with student loan payments, now is the time to understand the consequences of falling behind.
- If you default, your wages or tax returns can be garnished. If you completely stop paying, after a certain period your loan will move into default, which can lead to having payments deducted directly from your paycheck or even your tax refund. If you are already living paycheck to paycheck (as 25% of Americans currently do), this could significantly impact your quality of life and ability to pay your bills.4
- Defaulting and missing payments can destroy your credit score. If you ever plan to mortgage a house, lease a new car, or open a new credit card, simply missing a student loan payment here and there may prevent you. If your loan defaults, your credit score will take an even more serious hit. While it is possible to rehabilitate your loan and remove the record of the default from your credit history, the records of late payments cannot be removed.1 Major impacts to your credit can also affect your chances of refinancing your loans for a lower interest rate.
- It’s still possible to lower your monthly payments. There are income-based repayment plans that consider your income and family size, such as pay-as-you-earn (PAYE) or income-contingent repayment (I.C.R). However, these plans are expected to be discontinued after July 2028 and only can be applied to federal loans.1 Student loan refinancing is another option to lower interest rates on federal and/or private loans.
If you are looking to make your payments more manageable, start reviewing your options now. You may be able to lower your interest rate with student loan refinancing.
1 If You’re Struggling With Student Loans, Here’s What to Know for 2026. NY Times. www.nytimes.com/2026/01/02/business/student-loan-debt-save-plan.html, January 2, 2026.
2 Student Loans For 6.4 Million Borrowers Are Heading Toward A Dangerous ‘Cliff’. Forbes. www.forbes.com/sites/adamminsky/2025/12/15/student-loans-for-64-million-borrowers-are-heading-toward-a-dangerous-cliff, December 15, 2025.
3 On the Edge of a “Default Cliff”: New Survey Shows Student Loan Borrowers Are Struggling to Keep Up. The Institute for College Access & Success. ticas.org/affordability-2/2025-student-debt-survey-blog, December 5, 2025.
4 Paycheck to paycheck: Slowing but growing. Bank of America Institute. institute.bankofamerica.com/content/dam/economic-insights/paycheck-to-paycheck.pdf, November 11, 2025.
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