It’s tax season once again. While no one enjoys the tedious task of resolving last year’s business with Uncle Sam, there is one bright spot for those with student loan debt. USA Today reports that Turbotax is now offering a new feature that lets users quickly receive student loan refinance estimates based on their tax data.
Refinancing a student loan can save the average borrower $1,145 per year. Yet CNN Money reported that 8 million Americans—nearly one-third of those with student loan debt—were eligible to refinance and didn’t know it.
This new Turbotax feature could make the process a no-brainer for the estimated 5 million of its users that have student loan debt. Earnest, a student loan refinancing company, has partnered with Turbotax to offer estimates and potentially service loans. Customers would give Turbotax permission to share tax data with Earnest who would then use that info to give a personalized interest rate and estimate on potential savings. A soft credit pull would take place, and users would have to meet standard underwriting criteria of Earnest.
Further into the tax season, TurboTax will also alert customers to federal income-driven repayment plans and forgiveness programs that they might qualify for. While the average credit score needed to qualify for refinancing is typically in the mid-600s, Earnest requires a score of more than 700 along with a steady history of making deposits into a savings account.
Any customers who decide to refinance with Earnest still have to go through the full application process, including a hard credit inquiry, before receiving a set offer.
image copyright Mike Mozart