Congratulations! Student loan debt in the U.S. has reached $1.5 trillion as of 2018.
That’s a staggering sum, equivalent to $4,600 for every member of the population, including babies. If you exclude babies (and we will, but we shouldn’t let them get away with it again), the U.S. has around 40 million borrowers, so that’s around $37,000 owed on average per person.
I thought it was crazy when I heard that student loan debt reached $1 trillion, back in 2012. That means that in the last six years, the debt has grown by $500 billion, roughly an increase in $228,000 every day, assuming linearity.
Is your head hurting yet?
Actually, your head was probably hurting already, because chances are that you yourself are one of those 40 million people with student loan debt.
Chances are also that this payment has been around your neck for years, perhaps over a decade. And if you’ve signed up for one of these good-intentioned-but-possibly-self-defeating income-based repayment plans, your loans might actually be growing each month.
Now that’s depressing.
So you may have heard about a company called SoFi, which allows you to refinance your student loans to get a lower rate or a lower payment. And maybe you’ve wondered if it’s right for you.
Now, this isn’t a specific review of Sofi here. There are other companies that claim to do the same thing, such as Earnest. But just like Uber is a proxy name for Lyft and all the other indentured servitude driving companies, I’ll use SoFi to talk about all of them, since they are by far the most well known.
Is it a good idea to use SoFi refinance your student loans? Well let’s see.