Are you considering refinancing your student loans?

There’s a simple indicator to determine whether it could be a good idea.

It’s called your “debt-to-income ratio”.

To calculate this, divide your total student loan balance by your gross annual income (i.e. salary before taxes).

If your number is 1.5 or less then you’re likely a good candidate for refinancing.

Why refinance?

Holding a $150,000 debt at 6.8% a year generates a staggering $10,200 in yearly interest.

Cutting that rate to 3.4% will save you $5,100 a year.