Pros and Cons about Refinancing Your Student Loan Debt

You might be considering refinancing your mortgage to pay off your student loans. While it can sound like a smart move, it's essential to understand the pros and cons of this decision.
If you choose to refinance and cash out to pay down your student loans, remember that the money must go directly to the loan servicer when closing. Also, the loans must be under your name.
Consider the repayment period. Most student loans are set up to be paid off over 10 or 20 years. But if you include this debt in your mortgage, you could be looking at a 30-year repayment period. That's a significant extension.
Also, remember that federal student loans come with some valuable protections. You could qualify for $0 payments or payment forbearances if you run into financial difficulties. There's even the possibility of loan forgiveness or discharge if you become disabled. If you refinance your mortgage to pay off these loans, you'll lose all these benefits.
Before making a decision, weigh the pros and cons carefully. For more details, check out the video above. It's essential to make the best choice for your situation.


"I have worked with a good number of lenders personally and professionally over the years, and our experience with Walt and his team was by far the best experience I have had. For the refinance of our home mortgage, I had obtained quotes from other lender relationships, but no one could commit to closing any faster than 45 days. And, no one beat Waterstone Mortgage's fees and rates. Walt committed to closing within 30 days, and his team delivered: Walt spent the time needed to understand our needs and recommend loan options to meet those needs (and the options exceeded our expectations); Mayra pleasantly and efficiently walked us through the application process; and Ann worked closely with us to expeditiously move through underwriting to closing. All in roughly 3.5 weeks. They communicated with my wife and me effectively throughout the process so that there were no surprises. In addition to our genuine appreciation for the speed and results of their services through closing, we are also grateful that we can continue to turn to them as our primary contact over the life of the loan. We could not have asked for a better experience and would recommend Walt and his team at Waterstone without hesitation."

brian moore

"We used Walt and his team when we purchased our new home in Salem. We had a short close, but it was no problem for them. They were very responsive and were available when we called. We were very impressed with their professionalism and we appreciated Walt meeting with us for the Discovery Consultation. This was a great opportunity to ask questions and learn more about the process. We highly recommend Walt and his team!"


"Walt and his team are an actual delight to work with! At the beginning of my process I was disappointed with a lender, switched to Walt and holy smokes he exceeded my expectations right off the bat! He brought me to the office and laid out everything that was going to happen and multiple options to go about it. Everything was step by step, as a first time homebuyer your have many questions and he is well aware of that. He closed my house in 30 days and got me great rates! He responded in a timely manner to every question I had and I couldnt of been luckier to have such a informative, supportive and professional team to help me through this crazy process. I have to give a huge thank you to Walt and Lenda from the very bottom of my heart!"

katie braff