NerdWallet: R.I. borrowers can save $1,610 through student loan refinancing

NERDWALLET SAID THE average borrower in Rhode Island could save as much as $1,610 by refinancing their student loans. / COURTESY NERDWALLET
NERDWALLET SAID THE average borrower in Rhode Island could save as much as $1,610 by refinancing their student loans. / COURTESY NERDWALLET

PROVIDENCE – The average borrower in Rhode Island could save as much as $1,610 by refinancing their student loans, according to a study by NerdWallet.
In Rhode Island, graduates are carrying an average of $29,000 in debt, Nerdwallet said, which based its savings on the profile of a 2011 graduate.
NerdWallet said that nationwide, 69 percent of 2013 graduates took out loans, at an average of $28,400 per borrower, which is slightly lower than Rhode Island’s average.
Refinancing, NerdWallet said, allows borrowers to replace their separate federal and private loans with a single, new private loan, often with a lower interest rate.
New Hampshire borrowers will save the most in the nation with refinancing at $1,872, while Utah borrowers are estimated to save the least at $669, but they also have the least amount of debt with $17,227, NerdWallet said.
Average savings nationwide if graduates refinance is estimated at $1,145. Rhode Island borrowers stand to save the fourth-highest amount in the country through refinancing, the website said.
“While refinancing could save you money, be sure to weigh your options carefully. Taking your federal loans private means giving up certain benefits that come with a federal student loan — such as flexible repayment plans, loan deferment if you go back to school or lose your job and loan forgiveness if you work in public service for 10 years,” NerdWallet said.
NerdWallet noted that a “substantial amount” of $1.2 trillion in total student debt is for higher degrees, with the average 2012 law school graduate owing $140,616 and medical school graduate owing $161,772, adding refinancing is an option for them as well.

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