How to Help Your Child Repay Student Loans Faster

Kathryn Morstad

As a parent, you want to support your children and ease the rough patches as they move into adulthood.

Today, many parents are seeing the massive debt struggles being experienced by young people and are choosing to aid their kids by helping to repay their student loans.

Let’s Look at the Numbers

With over $1.6 trillion owed in student loans, young recent college graduates are unable to participate in important rites of passage. They are postponing buying homes, starting families, or saving for retirement.

Outpacing credit card debt at $1 trillion, student loans are the #1 factor in America’s current credit crisis. And while the total credit card debt is spread over a large, diverse section of the population, student debt is concentrated within a much smaller group:

Should We Wait to See if the Debt is Cancelled?

While there are a number of public policy initiatives being discussed, including debt forgiveness, interest reduction, and payment deferment, history has shown that taxpayers are reluctant to commit to a complete bailout.

There is also concern that while debt cancellation would lead to short-term economic stimulus (from more expendable cash), there are longer-term issues to consider like loss of revenue for the government and a widening deficit.

Free eBook: How to Conquer Student Loans

Free eBook: How to Conquer Student Loans

What’s the Breakdown of Average Student Loan Debt?

Whether your child is in a four-year program or is pursing advanced coursework, the debt picture is substantial. The average loan amount by degree level breaks down like this:

Degree Average Loan Amount Average Payoff Time
Associate $19.7K 18.3 years
Bachelor’s $29K 19.7 years
Masters $66K 23 years
Doctorate $108.4K 30 years

With numbers like that, it’s no wonder your child feels overwhelmed.

How to Help Your Child Repay Student Loans

Providing you are in a position to help your child, your financial assistance may give them the support that’s needed to manage their student loan debt. Here are some suggestions to consider:

  • Provide monetary support each month — By paying either the loan payments themselves or a monthly sum to be used as needed.
  • Ancillary support — By funding the purchase of a car or a down payment for a home mortgage.
  • Take over the loans completely in your name with student loan refinancing — By refinancing your child’s student loans into your name, you free your child financially and allow them to thrive. You may also get a better interest rate and repayment terms due to your credit history and income information.
  • Cosign your child’s student loan refinance — By cosigning on a refinance or loan consolidation, you may help your child get a lower interest rate and better repayment terms that meet their needs. They also have the opportunity to build their credit history for the future.

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Find the Best Student Loan Refinance Option for Your Family

Once you decide that refinancing meets your family’s financial goals, then selecting a reputable bank with competitive rates is your next move. Give some thought to what type of loan package will best fit everyone’s needs to help you in evaluating the different options available, including:

  • Save Money with a Lower Interest Rate — If you bring strong credit history and income longevity, you will qualify for a lower interest rate. A lower rate will save you money over the life of the loan.
  • Pay Off the Debt Quickly — With a more mature financial plan, you may be positioned to pay off the debt more quickly. In this case, you will want to look for a shorter repayment plan with higher payments. This will allow you to retire the debt sooner.
  • Consider a Variable Rate Loan — A variable rate typically starts lower and is regularly reevaluated and adjusted up or down depending on the current lending rates. Banks offer both fixed and variable interest rates on student loan refinancing.  This type of loan may be optimal for your child allowing them to make smaller payments in the first years as they get on their feet.
  • Refinance the Debt into Your Child’s Name as a Cosigner — By cosigning a student loan on behalf of your child, you allow them to build their credit history, but it will also impact your credit for the life of the loan.  Also, if the child defaults, your credit report will be negatively impacted, and you may end up responsible for the total outstanding amount.

See How Much You Can Save

Student Loan Refinance Calculator

View Details


Student loan refinancing combines your current loans into a single loan with a new rate and term. See how much you can save by entering your loan information below, or by getting quotes from multiple lenders using Purefy’s rate comparison tool.

Step 1: Enter Current Loan Information

Loan Balance
Your remaining student loan debt to be repaid.
Interest Rate
The amount that the lender charges in interest, expressed as a percentage.
Current Monthly Payment
The total amount of your monthly student loan bill.
Add Multiple Loans to Calculate

Step 2: Enter New Loan Information

New Interest Rate
Your updated interest rate after refinancing student loans.
The length of time you have to repay your student loan debt in full.

Add Multiple Loans

Insert additional loan

Step 3: See How Much You Can Save


Lifetime Interest


New Monthly



Current Loan New Loan Savings
Rate 6.7% 4.2% 2.5%
Lifetime Interest $37,520 $22,210 $15,310
Monthly Payment $1,146 $1,018 $128

Like what you see? Check your actual prequalified rates from the industry’s top lenders in just 2 minutes or less.

Remember that refinancing your child’s debt into your name or as a cosigner impacts your long-term plans, including retirement savings and large item purchases. Be sure that your generosity doesn’t create hardship for you down the road.

Selecting a Lender

Once you have decided the best course of action, it’s time to choose a lender. Purefy understands the process can feel burdensome with so many financial institutions to evaluate. We have created a rate comparison tool that takes out the guesswork and saves you time.

By providing a couple pieces of information, our rate comparison tool will provide you with real pre-qualified rates and terms from our team of top student loan refinance lenders. You can make an informed decision without having to visit each individual lender website and with no impact to your credit report.

Once you make a selection, you (and your child if you are cosigning) will then begin the formal process by filling out a loan application with your new lending partner based on the terms that you select. 

Talk to a student loan refinancing expert

At Purefy, our experts are ready to guide you through your best options to save





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It’s That Simple

Student loan refinancing can be an excellent solution to help your child repay student loans – either by cosigning their refinance or shifting the debt into your own name. However, if you choose to go forward, Purefy is here to answer any questions and help as may be needed.

Try our Compare Rates tool today and check out what our marketplace of top lenders have to offer at Purefy.

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Student Loan Refinancing

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ELFI Rate Disclosure

4 ELFI Rate Disclosure:

Education Loan Finance is a nationwide student loan debt consolidation and refinance program offered by Tennessee based SouthEast Bank. ELFI is designed to assist borrowers through consolidating and refinancing loans into one single loan that effectively lowers your cost of education debt and/or makes repayment very simple. Subject to credit approval. See Terms & Conditions. Interest rates current as of 01/01/2023. The interest rate and monthly payment for a variable rate loan may increase after closing, but will never exceed 9.95% APR. Interest rates may be different from the rates shown above and will be based on the term of your loan, your financial history, and other factors, including your cosigner’s (if any) financial history. For example, a 10-year loan with a fixed rate of 6% would have 120 payments of $11.00 per $1,000 borrowed. Rates are subject to change.

SoFi Rate Disclosure

3 SoFi Rate Disclosure:

Fixed rates range from 4.49% APR to 8.99% APR with a 0.25% autopay discount. Variable rates from 5.09% APR to 8.99% APR with a 0.25% autopay discount. Unless required to be lower to comply with applicable law, Variable Interest rates on 5-, 7-, and 10-year terms are capped at 8.95% APR; 15- and 20-year terms are capped at 9.95% APR. Your actual rate will be within the range of rates listed above and will depend on the term you select, evaluation of your creditworthiness, income, presence of a co-signer and a variety of other factors. Lowest rates reserved for the most creditworthy borrowers. For the SoFi variable-rate product, the variable interest rate for a given month is derived by adding a margin to the 30-day average SOFR index, published two business days preceding such calendar month, rounded up to the nearest one hundredth of one percent (0.01% or 0.0001). APRs for variable-rate loans may increase after origination if the SOFR index increases. The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. This benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. The benefit lowers your interest rate but does not change the amount of your monthly payment. This benefit is suspended during periods of deferment and forbearance. Autopay is not required to receive a loan from SoFi.

Earnest Rate Disclosure

2 Earnest Rate Disclosure:

Actual rate and available repayment terms will vary based on your income. Fixed rates range from 4.72% APR to 9.24% APR (excludes 0.25% Auto Pay discount). Variable rates range from 4.39% APR to 9.19% APR (excludes 0.25% Auto Pay discount). Earnest variable interest rate student loan refinance loans are based on a publicly available index, the 30-day Average Secured Overnight Financing Rate (SOFR) published by the Federal Reserve Bank of New York. The variable rate is based on the rate published on the 25th day, or the next business day, of the preceding calendar month, rounded to the nearest hundredth of a percent. The rate will not increase more than once per month. The maximum rate for your loan is 8.95% if your loan term is 10 years or less. For loan terms of more than 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95%. Please note, we are not able to offer variable rate loans in AK, IL, MN, NH, OH, TN, and TX. Our lowest rates are only available for our most credit qualified borrowers and contain our .25% auto pay discount from a checking or savings account.

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ISL Rate Disclosure

5 Iowa Student Loan Rate Disclosure:

Fixed Rate Loan Terms: 5 years/60 monthly payments, 7 years/84 monthly payments, 10 years/120 monthly payments, 15 years/180 monthly payments, or 20 years/240 monthly payments. Annual Percentage Rate [APR] is the cost of credit calculating the interest rate, loan amount, repayment term and the timing of payments. This rate is expressed as an APR. Fixed APRs range from 6.94% to 11.58% APR [low to high range with 0.25% auto-debit rate reduction]. Rates are subject to change without notice. Fixed rates will not change during the term. Since there are no fees associated with this loan offer, the APR is the same percentage as the actual interest rate of the loan including a 0.25% auto-debit rate reduction. These rates are subject to additional terms and conditions, and rates are subject to change at any time without notice. All estimates are based on information provided by you and are for informational purposes only, accuracy is not guaranteed and may not reflect actual rates or savings and do not constitute an offer of credit. Your actual rate, payment and savings may be different based on credit history, actual interest rate, loan amount, and term, including your cosigner [if applicable]. If applying with a cosigner, we use the higher credit score between the borrower and the cosigner for approval purposes. All loans are subject to credit approval.

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