Student Loan Refinancing
How to Pay off Student Loans Fast
Managing Your Student Loan Debt
Parent PLUS Loan Refinancing
Why Parents Should Refinance Student Loans
How to Refinance Parent Student Loans
Parent’s Guide to Student Loans
When to Apply for Private Loans
How to Pay for College Tuition
Applying for Student Loans Guide
Find Scholarships & Grants
Student Loan Refinance 101
Student Loan Glossary
See your debt-to-income ratio – or DTI – in seconds by quickly entering in your different monthly payments.
Have a strong DTI? You may be a perfect candidate for student loan refinancing to save thousands on interest.
Minimum Credit Score
Federal & Private
No maximum loan amount
Up to 12 months of forbearance if you experience financial hardship
Borrowers can refinance Parent PLUS loans in their own name
Loans available in all states except Maine and Oregon
Debt-to-income ratio (or DTI) is a snapshot of how much monthly income goes toward debt. DTI can be calculated by simply adding up monthly debt payments and dividing the total by gross monthly income (pre-tax).
It puts into perspective how much of your money you can contribute to paying off your debts. If this number is too high, it’s an indicator that you are borrowing at a faster pace than you can pay back, which makes for an unfavorable loan candidate for some lenders. Learning how to lower debt-to-income ratio can go a long way in paying down your debt faster. Debt-to-income ratio is important because different types of loans will require this information in order to lend. Some of these may include mortgage loans or vehicle loans.
Two of the most common ways to improve DTI is to either earn more money – either through your career or side income – and pay off your debts faster. The more quickly you pay off your current debt, the faster your DTI will improve with all else being equal.
One way to potentially lower your DTI is by refinancing your student loan debt. When you refinance student loans, you replace your current loans with a new one, usually from a different lender. One of the biggest benefits of refinancing is that it can help you save on interest. If you can qualify for a lower interest rate than what you’re currently paying, you’ll be able to save money as you pay down your debt. Scoring a lower interest rate can also naturally give you a lower monthly payment, which reduces your DTI and improves your chances of getting the loan you want.