Navigating the Student Debt Crisis is Hard, but Refinancing is Easy
Since 1981, college tuition costs have grown annually, leaving parents, like myself, grappling with the harsh reality that what we once budgeted for our children’s education pales in comparison to current tuition expenses.
Between 2000 and 2021, the average cost of tuition at a public four-year institution rose by 70%, but the quality of education did not similarly rise to meet the new high price of a degree. In fact, some private universities, including Boston University, Tufts, Yale, and Wellesley, now cost nearly six figures annually for tuition and housing.
Today, student debt totals nearly $1.8 trillion nationwide, and most Americans are divided on how to best handle the mounting situation.
Rogue executive agencies, without the authorization of the United States Supreme Court, have canceled approximately $138 billion of debt from 3.9 million borrowers—placing the burden of the growing crisis on taxpayers.
Unlike small business loans or mortgages, student loan lenders dole out substantial sums of money to eager 18-year-olds to attend college with little regard for how the individual will manage repayment in the future. These lenders overlook factors such as degree type, career, and financial prospects.
That is why so many students and graduates today are saddled with a debt that they cannot conceivably pay off in a reasonable time. But hope isn’t lost for everyone who was tricked by the college scam.
Yrefy allows borrowers who have defaulted on their student loan payments to refinance their tuition debt at a lower interest rate and simultaneously helps investors lock in a non-correlated investment that provides a high, fixed return. Refinancing student loans allows experienced borrowers to customize payments, decrease total costs, and get a fixed interest rate rather than an adjustable rate which may fluctuate alongside the tumultuous economy.
Unlike traditional lenders, Yrefy doesn’t make decisions regarding interest rates based solely on the borrower’s current credit score; the financial situation of the borrower and co-borrower is also taken into account when determining rates. Speaking of interest rates—Yrefy only offers fixed rates, which means the borrower’s monthly payments remain the same, making budgeting more predictable and comprehensive.
Refinancing can ease the financial strain on borrowers and is an innovative way to navigate the debt crisis, without burdening Americans who never attended college.
Alternatively, graduates could cross their fingers and default on their loans in anticipation of the Department of Education finding a way to fully side-step a Supreme Court ruling shooting down student loan forgiveness—but that wouldn’t be advisable.
