Debt Payoff Archives

Jun

2025

The Problems With Online Payday Loans and Fast Cash Lending

By Jamie Cattanach | Budgeting & Goals, Debt Payoff, personal_loan | No Comments

Whether you need to pay for an emergency root canal or have unexpected home repairs, sometimes those bills can’t wait for your next paycheck.

If you’ve researched how to access cash quickly, you might wonder if online payday loans are the answer. Lenders that offer payday loans typically promise you things like quick applications, no credit checks, and expedited approvals. They may say you’ll get the cold hard cash you need the very next day. But interest rates can be very high and create debt problems for borrowers. Learn more here so you can make the right choice when you need cash fast.

Key Points

• Online payday loans provide quick cash but have extremely high interest rates and fees.

• These loans often lead to a cycle of debt, making repayment difficult.

• Failure to repay can cause financial distress and negatively impact credit scores.

• Paycheck advances, debt settlement, and personal loans can be safer alternatives.

• Short repayment periods increase the risk of falling into debt.

How Do Payday Loans Work?

Payday loans are called that because they’re meant to be paid back the next time you get a paycheck. They’re generally for small amounts, and usually don’t require collateral or even necessarily a credit check.

The catch? Payday loans come at a price — and a high one, at that. They can have interest rates of 400% or even higher, depending on the lender you choose and which state you’re in. (Some states have stronger protective laws, including rate caps.)

Such high-interest rates and other associated fees can quickly lead to situations where you end up getting behind on the loan. You may end up having to borrow more and more in order to pay back the money you borrowed, especially since the loan might come due in only two weeks or a month. Soon you may be in a hole so deep you might not know how to get out. It can be costly, greatly damage your credit, or even lead to bankruptcy.

How Much Does a Payday Loan Cost?

The short answer: a lot. Here’s a specific example.

Say you take out a $500 payday loan at an annual percentage rate (APR) of 300%. You would only pay that full 300% if you took a whole year to pay off the loan because the APR is what you would be charged in interest over 12 months.

However, even if you only borrow money for one month, you’d have to pay 1/12 of 300%, which translates to 25%. Here’s where the math gets ugly: 25% of $500 is $125, which means that when your loan comes due at the end of its very short term, you’ll owe $625. This amount might be tough to meet, especially if you’re in a situation where you needed a payday loan in the first place.

What Is a Direct Payday Loan?

Payday loans are offered by a wide variety of vendors, but for the most part, they break down into two categories: direct payday loans and those offered through a broker.

With direct payday loans, the entire loan process, from application to funding to repayment, is all managed by the same company. Although these can be slightly better than indirect loans — which may involve multiple fees, longer funding wait times, and harder-to-pin-down communication — they’re still generally considered a bad idea.

Why Is it Best To Avoid Payday Lending?

Other than the possibility that you can get money quickly if you have bad credit, there aren’t many benefits associated with payday loans. You’ll end up paying a significant amount in interest, and you’re usually expected to pay the money back in a very short period of time — usually within two weeks or so.

The interest on your loan can also compound daily, weekly, or monthly. This means that interest charges will start accumulating on the interest you already owe, which will inflate your loan balance even more.

Depending on how much you borrowed and your financial situation, compounding interest can make it incredibly difficult for you to pay back the loan. Many times borrowers end up taking out additional loans to pay off the payday loan, which can lock them into a seemingly endless cycle of debt.

You’re also unlikely to be able to borrow a large amount of money because payday and fast cash loan lenders typically have low maximum borrowing amounts.

What’s more, you won’t even be building your credit if you do manage to pay the loan back on time, because most of these lenders don’t report your behavior back to credit bureaus. In contrast, above-board lenders will report back to credit bureaus when you’re paying your bills on time and in full, and that can positively impact your credit score.

What Are Some Alternatives to Payday Loans?

In an ideal world, you’d avoid any kind of consumer debt. But sometimes it’s simply unavoidable. There are financially favorable alternatives to consider before you sign up for a risky payday loan.

Paycheck Advance

The best kind of money to borrow is money you’ve already earned. While not every employer offers it, a paycheck advance can be a relatively low-risk way to fund last-minute emergencies. An advance on your paycheck basically means getting paid earlier than you normally would, with the balance deducted from your future paycheck.

But tread carefully: Many employers offer paycheck advances through apps and platforms that may assess a one-time fee or even charge interest. While the rates may not be as astronomical as payday loan rates, it’s still worth taking a second look at the paperwork to ensure you understand what you’re signing up for ahead of time.

Debt Settlement

Another option is debt settlement, which is where you offer a creditor a lump sum payment on a delinquent debt — a lump sum that often ends up being far less than the original amount you owed.

However, doing this does require some negotiating, and sometimes even some legal know-how, which is why many people seek the help of professional debt settlement companies. This, too, is tricky, because scams abound, and some debt settlement companies may try to charge exorbitant fees to “eliminate your debt,” all without actually doing any work on your behalf. The Federal Trade Commission has more information on debt settlement and how to look for a reliable firm if you choose to go this route.

Personal Loans

Many types of personal loans are unsecured loans — meaning no collateral is involved — that can be used to pay for just about anything. And although they tend to have higher interest rates than secured loans, like mortgages or auto loans, those rates are still much lower than payday loans.

With its lower interest rate and longer-term, a personal loan will likely cost you less money than a payday loan in the long run. And some online personal loan lenders can process your application quickly and even get you the money you need in a matter of days.

Unlike payday loans, you have to go through a credit check to qualify and get approved for a personal loan. However, if you have a steady income and meet the lender’s eligibility requirements, you’re likely to qualify for a lower interest rate than you would if you used an online payday loan.

Your repayment timeline could also be less stressful if you opt for a personal loan rather than a payday loan. Personal loans come with the option of longer terms — a few years, for example, instead of a few months.

And because you can pay your loan off over a longer-term, your monthly payments might be more manageable than a payday loan. There also tend to be fewer fees attached to personal loans, and you might be able to borrow more because personal loans have higher loan maximums.

Personal loans aren’t much more difficult to apply for than payday or fast cash loans. You can typically get pre-qualified online by answering a few questions about your income, financial history, and occupation.

Recommended: Personal Loan Calculator

The Takeaway

When you need money quickly, payday loans — and their promise of fast money — can be tempting. But you’ll want to proceed with caution. These loans generally come with very high interest rates and associated fees, and you may only have a couple of weeks or so to pay back the money you borrowed. There are less-risky alternatives to consider, including paycheck advance, debt settlement, or a personal loan.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

SoFi’s Personal Loan was named NerdWallet’s 2024 winner for Best Personal Loan overall.

FAQ

What is a disadvantage of a payday loan?

Payday loans generally come with high interest rates and associated fees. What’s more, you typically have to pay back the money you borrowed on your next payday.

Are payday loans a good idea?

Payday loans are usually not the top choice when you need cash quickly. That’s because they often come with high interest rates and tight repayment timelines.

What is the catch to payday lending?

The catch to payday loans is that borrowers are typically charged very high fees and interest rates.

Are payday loans easy or hard to pay back?

With their high interest rates and fees and short repayment timelines, payday loans can be difficult for borrowers to pay back on time.

Can payday loans hurt your credit?

While payday loans are unlikely to build your credit score, they can hurt your credit if you don’t pay back your loan and your lender sends the debt to a debt collector.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SOPL-Q225-097

Jun

2025

A woman sitting with her laptop and holding a notebook and pencil as she works on student loan repayment.

Should I Consolidate My Student Loans?

By Sarah Brooks | Debt Payoff, Fresh Out of School, Student Loans, student_loan | Comments Off

In 2025, 42.7 million Americans collectively have over $1.77 trillion in student loan debt. If you are one of the millions with some form of student debt, you may have asked yourself, Should I consolidate my student loans?

Consolidation is a process that allows you to combine your student loans into one loan with one monthly payment. Simplifying the student loan repayment process might seem like a good idea, but there are a few things to consider before you consolidate your loans. In some cases, consolidating loans may disqualify you from certain federal student loan repayment programs and forgiveness. But other times, consolidation can allow you to lower your interest rates or shorten the amount of time it takes you to pay off your loan.

Read on to learn how student loan consolidation works, the pros and cons of the process, and when to consolidate student loans.

Key Points

• Consolidating student loans can simplify repayment by combining multiple loans into one.

• Reduced monthly payments and new loan terms are potential benefits of consolidation.

• Federal loans can be consolidated through the Direct Consolidation Loan program. Private student loan consolidation is more commonly known as student loan refinancing.

• Refinancing may offer lower interest rates, but refinancing federal loans results in losing federal benefits.

• Carefully consider the pros and cons before consolidating or refinancing student loans.

What is Student Loan Consolidation?

Student loan consolidation combines some or all of your student loans into one loan and makes repayment more manageable. There are both federal and private options when it comes to consolidating your student loans.

Private Student Loan Consolidation

Private student loan consolidation is more commonly known as student loan refinancing. This is when a private lender pays off all or some of your student loan debt and creates a new loan, which you will then make payments on. Ideally, when you refinance student loans, the new loan will have a lower interest rate and better terms than your previous student loans.

With a private lender, you can combine both federal and private loans. But if you refinance your federal loans you will lose access to federal student loan forgiveness programs, such as income-driven repayment plans. If you plan on using one of these programs now or at some point in the future, it’s best to hold off on refinancing federal loans. Instead, you could refinance just your private loans.

Federal Student Loan Consolidation

If you are hoping to consolidate federal loans only and want to keep access to federal forgiveness programs and other federal benefits, you can consolidate with a Direct Consolidation Loan through the U.S. Department of Education.

Consolidating through the federal student loan system doesn’t usually save you money; it simply combines multiple loans into one. Your new interest rate is a weighted average of all your loans’ interest rates, rounded up to the nearest eighth of a percentage point. Should you consolidate student loans, any unpaid interest on the loans you’re consolidating will be capitalized — that is, added to the principal of the new loan.

Consolidation may be particularly useful for borrowers who are pursuing federal student loan forgiveness or who are enrolled in one of the more flexible federal student loan repayment plans, such as an income-driven repayment plan.

You can also choose to consolidate your federal loans and refinance your private loans. If you go this route, you may be able to get the possible benefits of refinancing (lower interest rates, better terms) without losing the perks of having federal loans.

Before you consolidate or refinance your loans, you should consider the pros and cons of the process. Getting clarity on whether consolidation is right for you will help you make the right decision for your financial needs.

Benefits of Consolidating Student Loans

As you’re considering when to consolidate student loans either with a Direct Consolidation Loan or refinancing through a private lender, there are several advantages to keep in mind.

Simplified Repayment

Whether you choose a Direct Consolidation Loan or choose to refinance through a private lender, your loan repayment may be simplified. Managing multiple student loan payments might increase your chances of missing a payment. If you miss even one payment, you may risk damaging your credit score. Late payments may also stay on your credit profile for up to seven years.

Consolidating loans into one may help eliminate some of the stress of juggling multiple loan payments and may make repayment more manageable.

Fixed Interest Rate

When you refinance your loans through a private lender, your interest rate and terms will be based on your credit score, payment history, type of loan you’re seeking, and other financial factors. While requirements may vary by lender, applicants who meet or exceed the lender’s criteria may qualify for better interest rates and terms and save money over the life of the loan.

Borrowers can also switch from a variable to a fixed interest rate when refinancing through a private lender if they’d like a payment that stays the same every month (variable rates can fluctuate with market conditions).

With federal Direct Loan Consolidation, as mentioned earlier, a borrower’s interest rate is a weighted average of current loan rates rounded up to the nearest one-eighth of a percentage point, which means this doesn’t typically result in savings for the borrower. The borrower does, however, keep their access to federal loan forgiveness programs.

Flexible Loan Terms

Student loan consolidation may allow you to change the duration of your loan. If you currently have a 10-year repayment plan, for example, you may choose to shorten or lengthen the term of your loan when you consolidate or refinance. Typically, lengthening the term of your loan will reduce your monthly student loan payment but add up to more total interest in the long run.

Drawbacks of Student Loan Consolidation

Even though there are benefits of student loan consolidation, there are also drawbacks. Here are a few considerations to be aware of before consolidating student loans.

You Can’t Lower Interest Rates on Federal Student Loans When Consolidating

If you choose the Direct Consolidation Loan, generally you won’t see any savings. Because your new interest rate is a weighted average of your current loans rounded up to the nearest one-eighth of a percentage point, you will probably pay around the same amount you would have paid if you didn’t consolidate. In addition, any unpaid interest on the loan you’re consolidating will be capitalized — that is added to the loan principal.

If you extend your term, you may see your monthly payment decrease, but your total interest payments will increase.

On the other hand, if borrowers choose to refinance with a private lender, they may qualify for a lower interest rate, thus saving money over the term of the loan. They could also opt for lower monthly payments by extending their loan term. But they may pay more interest over the life of the loan if they refinance with an extended term.

Possible Disqualification from Federal Repayment Programs

Refinancing federal student loans with a private lender means you lose access to federal repayment programs, including the Public Service Loan Forgiveness Program (PSLF) and income-driven repayment plans.

Borrowers will also be disqualified from federal benefits such as student loan forbearance and deferment options, which allow qualifying borrowers to pause payments in the event of financial hardship.

Some private lenders may offer their own hardship programs, but policies are determined by individual lenders.

Student Loan Refinancing vs. Consolidation

Consolidating or refinancing student loans are terms that are used interchangeably, but they actually apply to two different types of loans. A federal student loan consolidation is when you combine federal loans through a Direct Consolidation Loan. This is done by the U.S. Department of Education.

A student loan refinance allows you to combine private and/or federal loans into one new loan and is done by a private lender. While this does effectively “consolidate” your loans, it’s different in some important ways from federal student loan consolidation.

Below are some differences and similarities between student loan consolidation vs. refinancing.

Student Loan Refinancing vs Consolidation
Refinance	Consolidation
Combines multiple loans into one	Combines multiple loans into one
Can refinance federal and private loans	Can consolidate federal loans only
Private refinance lenders may charge a fee	No fees charged
Credit check required	No credit check needed
Interest rate could be lowered	Interest rate is a weighted average of prior loan rates, rounded up to nearest one-eighth of a percent
Term can be lengthened or shortened	Term can be lengthened or shortened
Once refinanced, federal loans will no longer qualify for federal forgiveness or repayment programs	Loans remain eligible for federal forgiveness and repayment programs
Saves money if interest rate is lowered	Typically not a money-saving option

Key Takeaways

Understanding the benefits and drawbacks of student loan consolidation — as well as the difference between federal student loan consolidation and private refinancing — can help you make an informed decision about repaying student loans.

If you decide to consolidate your loans through student loan refinancing, you might want to consider evaluating a few options from different lenders, because requirements — as well as interest rates and loan terms — can vary from lender to lender.

Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.

With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

FAQ

Can your student loans still be forgiven if you consolidate them?

If you consolidate your federal student loans with a Direct Loan Consolidation, you are still eligible for federal loan forgiveness programs. However, if you choose to consolidate your federal loans through a private lender, which is known as refinancing, you will no longer be eligible for forgiveness programs and other federal student loan benefits.

When is consolidating student loans worth it?

Consolidating student loans is worth it if you’re looking to combine multiple student loan payments into one. You can use a Direct Consolidation Loan for your federal loans and keep your access to federal benefits like income-based repayment programs or forgiveness.

Another option is to refinance your student loans through a private lender, which may give you a lower interest rate and lower monthly payment, but if you refinance federal loans, you lose access to federal benefits like forgiveness and income-driven repayment plans.

What are some advantages of consolidating student loans?

The biggest advantage of consolidating your student loans is that you combine them into one loan so you only have one payment every month. This makes it easier to track your loans.

If you choose to refinance your loans with a private lender, you may also receive a lower interest rate, which can help you save money. But if you refinance federal loans with a private lender, you lose access to federal programs like forgiveness and forbearance.

What types of student loans are eligible for consolidation?

The types of federal student loans eligible for consolidation through federal Direct Loan Consolidation include: Direct Subsidized and Unsubsidized Loans, Direct Plus Loans, Federal Stafford Loans from the Federal Family Education Loan (FFEL) program, FFEL PLUS Loans, and Federal Perkins Loans.

The types of student loans eligible for refinancing are federal student loans and private student loans. But refinancing federal student loans makes them ineligible for federal benefits such as income-driven repayment and federal forgiveness programs.

SoFi Student Loan Refinance
Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FORFEIT YOUR ELIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers. Learn more at SoFi.com/eligibility. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third Party Trademarks: Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®

SOSLR-Q225-030

Jun

2025

Refinancing Student Debt With a Cosigner

By Kayla McCormack | Debt Payoff, Fresh Out of School, Student Loans, student_loan | No Comments

If you’re interested in possibly refinancing your student loans, but you don’t think your credit history is strong enough, there are options that might help. One is to refinance student loans with a cosigner.

A cosigner could potentially help you qualify for a refinanced loan. But is taking out a new loan with a cosigner the right choice for you? There are pros and cons to carefully consider in order to decide if student loan refinance with a cosigner makes sense for your personal situation.

Table of Contents

What is a Cosigner on a Loan?
Can a Cosigner Refinance a Student Loan?
Finding a Cosigner
Pros and Cons of Having a Cosigner
Using a Cosigner When Refinancing Your Student Loans
Things to Consider if You’re Asked to Cosign a Loan
How to Remove a Cosigner After Refinancing
Refinancing Student Loans With SoFi

Key Points

• A cosigner with strong credit can help you qualify for student loan refinancing and potentially secure a lower interest rate.

• If you fail to make payments, your cosigner is legally responsible for repaying the loan, which can impact both of your credit scores.

• Refinancing federal loans with a cosigner makes them ineligible for federal benefits like income-driven repayment plans and loan forgiveness.

• Asking someone to cosign a loan is a big request—approach the conversation respectfully and demonstrate financial responsibility.

• Cosigners should understand the risks, stay informed about payments, and be prepared for potential financial consequences.

What Is a Cosigner on a Loan?

A student loan cosigner is someone who legally agrees to pay your debt, such as your student loan debt, in the event that you can’t make the payments yourself. The exact terms will vary based on the loan type and lender, but in general, this person signs your loan with you and accepts responsibility for your loan if you are unable to pay your debt.

Responsibilities of a Cosigner

A cosigner on a student loan agrees to take on equal responsibility for repaying the loan. Any late or missed payments or student loan default by the borrower could harm the cosigner’s credit.

How Cosigners Affect Loan Approval

When a borrower adds a creditworthy cosigner to their loan application, it could help approve their chances of qualifying for the loan and securing a lower interest rate if the cosigner has a strong credit and financial history.

Can a Cosigner Help You Refinance a Student Loan?

If you’ve decided to refinance a student loan, a cosigner may help you qualify if your own credit is not strong enough.

Creditors review a variety of factors to determine whether or not they will give someone a loan. Things like a low credit score or a credit history that’s not robust enough can serve as an indicator to lenders that an individual could be a credit risk. Adding a creditworthy cosigner could make a potential borrower appear less risky, since there’s another person — one with a strong financial and credit background — to help guarantee repayment of the loan.

One important thing to note about student loan refinancing — either with or without a cosigner — is that if you are refinancing federal student loans, they will be ineligible for federal benefits like income-driven repayment and federal deferment.

Finding a Cosigner

If you can’t qualify for a loan based on your own credit history or current income, student loan refinancing with a cosigner who has a strong credit history may help improve your prospects.

Who Makes a Good Cosigner

When choosing a cosigner, you want someone with a good credit history who also has steady employment and a good income. In addition, you want an individual you can trust to repay the debt in the event you can’t. And finally, because cosigning a loan is a big commitment, it’s important to choose someone you will feel comfortable asking.

How to Ask Someone to Be Your Cosigner

Being a cosigner is a big responsibility, so how you ask someone to cosign is important. Treat the request with respect. Be open and honest about why you need to refinance student loans with a cosigner. Explain, for instance, that you are recently out of school and don’t yet have a strong credit history. By applying with a cosigner you are more likely to be approved for a refinance loan and get a lower interest rate. Also, detail your plans for repaying the loan so the other person knows you are serious about and committed to handling your debt.

Should a parent cosign a student loan, or should any relative or friend for that matter, it’s important to make them aware of the responsibilities and legal obligations involved. In addition, be sure they are prepared to pay for the loan if you are not able to do so. They should also understand that anything negative regarding the loan, such as late payments, can affect their credit.

Pros and Cons of Having a Cosigner

Taking out a loan with a cosigner is a significant commitment, so it’s worth considering the pros and cons. What’s right for you will depend on your personal and financial situation.

One of the most notable benefits of refinancing with a cosigner is the potential to qualify for a loan that may not have been an option otherwise. A cosigner could also possibly help you qualify for a lower student loan interest rate than what you could receive on your own. If you have little to no credit history or bad credit, it could help to refinance student loans with a cosigner by giving you an opportunity to begin strengthening your credit over time.

On the other hand, there can be some drawbacks to refinancing with a cosigner. If you fail to make payments on your loan, your cosigner will be responsible for repaying your debt. As a result, missed payments will likely reflect on both of your credit histories. This could also negatively impact your personal relationship with your cosigner.

💡 Recommended: Student Loan Calculator

Using a Cosigner when Refinancing Your Student Loans

When you’re refinancing your student loans, enlisting a friend or family member to cosign your refinanced loan could help strengthen your loan application.

Again, keep in mind that acting as a cosigner has risks — if you don’t pay back your loans, your cosigner is on the hook. It’s a big request, so take some time to think about how you’ll make it. Here are some additional tips that may help inform your conversation:

1. Asking respectfully. You’ll want to broach the subject thoughtfully and respectfully. You’re asking the person for a serious commitment, so asking with tact to show you understand the gravity of your request is crucial.

2. Showing your dedication. As noted, it’s also important to make it clear to your cosigner that you’re going to be making timely payments on the loan. One simple way to do so is by providing them with regular updates.

3. Illustrating to your cosigner that you understand the intricacies of your loan. They’ll be responsible for the loan if you fail to make payments, so they’ll likely want to make sure you understand the responsibility you’re taking on — and asking them to take on.

Things to Consider if You’re Asked to Cosign a Loan

If you’ve been asked to cosign a loan, be aware that serving as a cosigner can come with consequences for your finances if the primary borrower fails to make payments. If you’re a family member or friend with excellent credit and a well-paying job, you could be a candidate as a cosigner. If you have some hesitation, here are a few steps you can take:

1. Talking it out with the borrower. The borrower is going to use your name and credit history to take out a loan. It can be helpful to understand why they feel they need a cosigner while making sure they have the means to repay the loan.

2. Following up often. Keeping the lines of communication open so you are aware of any issues can be helpful for both parties. If need be, you could discuss making payments on their behalf to avoid the impact of a late or missed payment on your own credit score.

3. Accepting negative outcomes. Even if you’ve done everything you can to ensure the borrower is trustworthy, something might come up where they let you down. Your credit score might take a hit and you might be responsible for making payments yourself. Remember that this could happen, so accepting it as a possibility may be helpful.

Cosigning a loan is a big responsibility that can have implications on your financial future, so take some time to consider the idea.

If you decide not to cosign, you can let the requester down gently by trying to help them think of some alternative options to secure the loan or money they need.

How to Remove a Cosigner After Refinancing

Some lenders allow cosigners to be removed from a loan through a cosigner release. This allows the cosigner to be officially released from the loan and all the responsibilities that come with it. Typically, the primary borrower has to apply for a cosigner release with the lender.

Depending on the terms of the loan, the cosigner may be able to be released if the primary borrower has graduated from college and meets certain requirements as stipulated by the lender. Typically these requirements include such things as the primary borrower making one to two years of on time payments, having a good credit report and no loans in default, and being in a stable job with a steady income.

If your lender doesn’t offer a cosigner release, another way to take a cosigner off your loan is to refinance your student loans again. When you refinance, you replace your old loans with a new loan that has new terms. If you can qualify for the refinance on your own, you won’t need to include the cosigner on the new loan.

Refinancing Student Loans With SoFi

If you’re interested in refinancing student loans but your credit isn’t strong enough, enlisting a trusted person with a strong financial background as a cosigner may help you qualify for a loan and/or get a lower interest rate. Or, if your credit has strengthened over time, and you can qualify on your own, you can consider refinancing without a cosigner.

With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

FAQ

How does adding a cosigner affect my interest rate?

A cosigner with strong credit and a solid financial background may help a borrower qualify for a lower interest rate when refinancing a student loan. Generally, the more creditworthy the cosigner is, the better a borrower’s chances of getting a lower rate.

What credit score does my cosigner need?

The credit score a cosigner needs for a student loan refinance depends on the lender’s specific criteria. Typically, many lenders look for a credit score of 670 or higher.

How long will my cosigner be responsible for my loan?

A cosigner is generally responsible for a loan until the loan is repaid in full. However, a cosigner may be able to be released from a loan through a cosigner release option — if a lender offers it and the primary borrower meets specific criteria set by the lender. Another option is for the primary borrower to refinance the loan again in their own name only, without the cosigner.

Do I need a cosigner for student loan refinance?

The specific requirements for refinancing a loan with a cosigner will depend on your credit history and income (among other factors) and the eligibility requirements of the lender. Borrowers who have a less than stellar credit history may find adding a cosigner to their application allows them to qualify for a student loan refinance and a more competitive interest rate.

Can I consolidate my student loans with a cosigner?

When you consolidate federal student loans through the Direct Consolidation Loan program, you combine all your current federal loans into a new loan with one payment. With Direct Loan Consolidation, you typically don’t need a cosigner.

Can a cosigner become the primary borrower?

In order for a cosigner to become the primary borrower of a student loan, the loan would generally need to be refinanced in the cosigner’s name.

SOSLR-Q225-025

Jun

2025

Should You Refinance Your Student Loans?

By Jody McMaster | Debt Payoff, Fresh Out of School, Student Loans, student_loan | No Comments

If refinancing your student loans could save you money or make your monthly loan payments more manageable, it may be time to consider a refinance. When you refinance student loans, you replace your existing loans with a new loan from a private lender. Ideally, the new loan would have better rates and terms, if you can qualify for them.

Refinancing isn’t always the right choice, however. There are times when it may not be in your favor. If you’re wondering, should I refinance my student loans?, here’s what you need to know.

Key Points

• Refinancing student loans can potentially save borrowers money through lower interest rates and reduced monthly payments.

• A good credit score is needed to qualify for the best refinancing offers and terms.

• Borrowers who want to switch from variable to fixed interest rates (or vice versa) can do so by refinancing.

• Refinancing federal loans results in losing eligibility for federal forgiveness and income-driven repayment programs.

• Weighing pros and cons is crucial, especially for those with federal student loans, to determine if refinancing is beneficial.

When to Refinance Student Loans

There are several situations in which refinancing student loans makes sense, including these instances:

You Have Private Student Loans With High Interest Rates

If you took out private student loans to help cover the cost of school and the interest you’re paying is high, refinancing may help you get a lower rate. This is especially true at times when interest rates are lower overall and/or when your financial history is solid.

If you qualify for an interest rate that’s even just a few points lower than your current rate, you could potentially save thousands of dollars. This could be one of the times when to refinance student loans. A student loan refinancing calculator can help you crunch the numbers to see what your specific savings might be.

Or perhaps you need to lower your monthly payment to help save money. One way to do this is to refinance your student loans with a longer loan term. This will reduce your payments, however, you will end up paying more in interest over the life of the loan. You could also lower your payment by getting a lower student loan refinancing rate, if possible, and keeping the term the same.

Your Credit Score is Good

Your eligibility to refinance student loans depends in part on your credit score. If you’ve spent time building your credit and you have a stable job, you may qualify for lower student loan refinancing rates.

You can also consider applying for a student loan refinance with a cosigner. If your cosigner has a stronger credit profile than you, you may be able to land a better rate on your refinance.

You can usually refinance student loans right after graduating, and as often as you want after that. Most lenders charge no fees to refinance.

You Have Multiple Loans

If you have several different student loans, refinancing allows you to combine them all into one loan. Basically, when you refinance, you take out a new loan, and that loan is used to pay off your existing loans. You then make payments on the new loan. It streamlines the repayment process since you have just one loan payment to make each month.

You can refinance both federal and private student loans, or a combination of both types, but be aware that refinancing federal loans with a private lender will forfeit your eligibility for federal benefits and protections.

You Qualify for Refinancing

Whether you qualify to refinance student loans depends in part on your credit score, as noted, along with your financial history, employment, and debt-to-income ratio (your monthly income vs. expenses). If you qualify, and ideally, if you can get a lower interest rate, you can save money by refinancing.

You Want to Remove a Cosigner

If you have a cosigner on your student loans and you’d like to remove them, refinancing is one way to do that — as long as you have the credit and financial history to qualify to refinance on your own. To remove the cosigner, take out the refinance loan in your own name only. The cosigner will not have any responsibility for the new loan.

You Want to Switch to Fixed Interest

If you have student loans with variable rates, and you’re concerned that interest rates will rise, you may want to consider refinancing to lock in a fixed rate on the new loan.

You Are Willing to Give Up Federal Benefits

Borrowers with federal student loans need to understand that refinancing these loans into a private student loan will eliminate the ability to participate in income-driven repayment plans, Public Service Loan Forgiveness, and federal deferment and forbearance.

If you are using these benefits or you plan to, it’s not recommended to refinance your student loans. Instead, you could consider student loan consolidation vs. refinancing. A federal student loan consolidation combines multiple loans into one, with the interest rate being the weighted average of the loans you are consolidating rounded up to the nearest one-eighth of a percent.

IMPORTANT: The projections or other information generated by this quiz regarding the likelihood of various outcomes are hypothetical in nature, do not reflect actual results, and are not guarantees of offers.

When Not to Refinance Student Loans

Just like there are times when refinancing may be a wise choice, there are also times when it’s best not to refinance your student loans. You’ll generally want to rule out refinancing in the following situations.

You Want to Use a Federal Loan Forgiveness Program

If you have federal student loans and you’re planning on taking advantage of federal loan forgiveness programs that cancel some of your debt after you meet certain qualifications, refinancing is not the right option for you. Refinancing federal loans into a new private loan makes them ineligible for federal benefits and programs.

You Work in Public Service or Education

Borrowers working in a public service job or as a teacher or educator should think twice about refinancing. If you keep your federal student loans, you may be able to qualify for Public Service Loan Forgiveness (PSLF) or Teacher Loan Forgiveness. With PSLF, eligible borrowers who work in public service for a qualifying nonprofit organization or government agency may qualify for forgiveness from their remaining loan balance after making 120 qualifying payments.

With Teacher Loan Forgiveness, if you teach for five consecutive years in a low-income school or educational service agency and meet certain other qualifications, you may be eligible for forgiveness for up to $17,500 on certain federal student loans, including Direct Subsidized and Unsubsidized Loans.

Refinancing federal student loans means you lose access to these forgiveness programs.

You Need Flexible Repayment Options

If you need a payment plan that could make it easier to repay your federal student loans, income-driven repayment (IDR) is an option to consider. IDR plans base your payments on your discretionary income and family size. The repayment period ranges from 20 to 25 years on these plans.

There are three IDR plans borrowers can currently enroll in via an online application: the income- based repayment (IBR) plan, the income-contingent repayment (ICR) plan, and the Pay As You Earn (PAYE) repayment plan. On one of these plans, the IBR plan, the remainder of your student loan debt may be forgiven at the end of the repayment term.

If you refinance student loans, you will not be eligible for IDR plans.

You Have Poor Credit

Borrowers need good credit to qualify for refinancing, and they need good or excellent credit to be eligible for lower interest rates. If your credit is poor, it may be wise to hold off on refinancing and work on building your credit instead. You could always refinance later, when your financial situation improves and your credit is stronger.

The Takeaway

Knowing when and when not to refinance student loans is important. Refinancing your loans can make sense if it saves you money or helps you get more favorable loan terms. But if your credit isn’t strong enough to get a lower interest rate, or you have federal student loans and want to pursue federal programs like loan forgiveness, refinancing isn’t recommended.

With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

FAQ

Can refinancing student loans reduce the cost of your total debt?

Yes, refinancing your student loans may reduce the total cost of your debt by reducing the amount of interest you pay over the life of the loan. You can do this by getting a lower interest rate (and keeping your loan term the same) and/or shortening your loan term.

What credit score do you need to refinance student loans?

The minimum credit score needed to refinance student loans varies from lender to lender, but according to FICO, a “good” credit score is 670 or higher. To get the best student loan refinance rates, you’ll want to have a good credit score and low debt-to-income ratio. If you don’t meet those requirements, you may want to consider refinancing with a cosigner or waiting until you build your credit.

How do I qualify for student loan refinancing?

To qualify for student loan refinancing, you need strong credit, a low debt-to-income ratio, and stable employment and a steady income. Some lenders may also require you to have your degree in order to refinance. If you don’t meet the refinancing qualifications, you could add a creditworthy cosigner to your loan application or wait to refinance when your financial situation improves.

What are the benefits of refinancing student loans?

The benefits of refinancing student loans include saving money if you can qualify for a lower interest rate, lower monthly payments if you extend your loan term, switching from a variable rate loan to a loan with a fixed rate, and removing a cosigner from your loan if that is something you are looking to do. Just be aware that refinancing federal student loans makes them ineligible for federal programs and protections.

Can student loans be forgiven if you refinance?

No, student loans cannot be forgiven if you refinance. Refinancing federal loans into private loans makes them ineligible for forgiveness. If you have federal student loans and you would like to pursue federal loan forgiveness, refinancing is not the recommended option for you.

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Jun

2025

How to Pay Off Debt in 9 Steps

By Austin Kilham | Debt Payoff, Financial Independence, invest | No Comments

Being debt-free can be a terrific feeling of freedom. However, many of us don’t know that sensation. As of 2025, Americans carry a record $18 trillion in debt, with most of that reflecting mortgages. High-interest credit card debt rings in at almost $6,500 per person. Paying off the amount that you owe — whether it’s credit card debt, student loans, or something else — can be a considerable challenge.

While each person’s finances are different, there are smart strategies to pay off debt effectively and quickly. That will not only likely reduce your money stress and improve your finances, it can also free up funds to help you achieve some big-picture goals, whether that means funding a wedding or growing your toddler’s college fund.

Here, you’ll learn why it’s important to pay off debt, the best how-tos, and tips for managing debt as you work to shake it off.

Key Points

• Americans carry considerable debt, with credit card debt currently standing at about $6,500 per person.

• Create a budget, track and cut expenses, and set realistic goals for debt repayment.

• Use the snowball or avalanche method to prioritize debts.

• Make more than minimum payments to reduce interest.

• Consider debt consolidation options, including loans.

Why Is It Important to Pay Off Debt?

Granted, not all debt should necessarily be paid off ASAP. There’s “good debt,” which is typically lower interest and can have a positive impact on your financial status. For example, if you have a mortgage, that is likely low-interest and it is helping you build equity and, by extension, your net worth.

However, there is also “bad debt” of the high interest variety, like credit card debt, which can wind up having a negative effect on your finances and your life. Some examples of why this kind of debt can be problematic:

• It takes up funds that could otherwise be put towards long-term goals like retirement or short-term goals, such as a vacation fund.

• It gives you more bills to pay.

• It can cause you stress.

• It can have a negative impact on your credit score, which can have further ramifications, such as making it more expensive to open other lines of credit.

• It means you are subject to the lender’s decisions (such as raising your interest rate).

When you are debt-free, you likely don’t have to deal with those issues any longer. So here are smart debt payoff strategies to help you take control of your money.

steps to paying off debt

1. Create a Budget

A budget can help you understand and create a plan for where your money is going. This is where you can start to figure out how to live within your means to avoid accumulating new or more debt in the future, such as credit card debt.

• To make your budget, take an inventory of all of your after-tax income. If you have a job, simply look at your net paycheck and multiply the number by how many times you’re paid each month.

• Next, tally up necessary expenses. These might already include debt payments such as your student loans or a car payment. They can also include rent, utilities, insurance payments, groceries, and so on.

• Subtract this total from your income and what you have left represents the money available for discretionary spending. If the amount of money you’re spending on discretionary expenses exceeds the amount you have available, you’ll likely need to make some adjustments to how you spend.

• To pay off debt, focus a portion of the available discretionary income on debt payments. One approach is known as the 20/10 rule, which says that you should put no more than 20% of your annual take-home pay or 10% of your monthly income towards consumer debt.

2. Set Realistic Goals

It takes a lot of discipline to get debt-free. Setting measurable and achievable goals can help you stay on track. Think carefully about how much money you actually are able to put toward your debts each month. Include factors like how much spending you can reasonably cut and how much you might be able to add to your income.

Don’t factor in extra income unless you’re sure you’ll be able to come up with it. Once you settle on your monthly amount, you can calculate how many months it will take you to pay your debt off.

For example, say you have $500 dollars per month to help you pay off $10,000 in credit card debt with a 19.99% interest. Using an online credit card payoff calculator, you can determine that it will take you about 25 months to pay off your card. So, a reasonable goal might be two years to get out of debt, which even builds in a little wiggle room if you can’t come up with a full $500 in one of those months.

3. Try a Payoff Method

Once you’ve identified funds you can use to pay down debt, there are a number of strategies you can use to put that money to work towards different debts you’re shouldering.

The Snowball Method

Here’s how the snowball method of debt repayment works:

• List your debts in order of smallest balance to largest. Look exclusively at the amount you owe, ignoring the interest rate.

• Make minimum payments on all the debts to avoid penalties. Make all extra payments toward paying off the smallest debt.

• Once the smallest debt is paid in full, move on to the next largest debt and so on. Use all of the money you were directing toward the previous debt, including minimum and extra payments, to pay off the next smallest. In this way, the amount you’re able to direct toward the larger debts should grow or “snowball.”

One downside to the snowball method is that while targeting your smaller debts first, you may be holding onto your higher interest debts for a longer period of time.

However, you should also theoretically get a psychological boost every time you pay off a debt that helps you build momentum toward paying all of your debts off. And if this extra push can help keep you motivated to continue eliminating debt, the benefits of this strategy might outweigh the extra costs.

The Avalanche Method

The avalanche method takes a slightly different approach:

• List your debts in order of highest interest rate to lowest. Once again, commit to making minimum payments on all of your debts first.

• Make any extra payments toward your highest interest rate debt. As you pay each debt off, move on to the next debt with the highest rate. The debt avalanche method minimizes the amount of interest you pay as you work to get debt-free, potentially saving you money in the long-term.

The Fireball Method

This is a hybrid approach to the snowball and avalanche methods:

• Group your debts by good and bad debt. As noted above, good debts are those that help you build your future net worth, like a mortgage, business loan, or student loan, and typically have lower interest rates. Bad debts have high interest rates and work against your ability to save; think credit card debt. (Btw, credit card debt should always be characterized as bad debt even if you are taking advantage of a 0% interest promotion.)

• Next, list your bad debts in order from smallest to largest based on balance size. Continue making minimum payments on all debts, but funnel extra cash toward paying off the smallest of the bad debts.

• Work your way up the list until all your bad debts are paid off. You can pay off your good debts on a regular schedule while investing in your future. Once you’ve blazed through your bad debt, you may even have extra cash to help you accomplish your long-term goals.

Choose the strategy that fits your personality and financial situation to increase the chances for success.

4. Complete a Balance Transfer

A balance transfer allows you to pay off debt from one or more high-interest credit cards (or other high-interest debt) by using a card with a lower interest rate. This strategy has a number of benefits.

• First, it helps you get organized. Staying on top of one credit card statement might be easier than keeping track of many cards.

• This strategy also helps you free up the money you were paying toward higher interest rates, which you could use to accelerate your debt payments.

Research what’s available carefully. Some credit cards offer teaser rates as low as 0% for a set period of time, such as six months to a year or even longer. It may make sense to take advantage of one of these deals if you think you can pay down your debt within that time frame.

However, when these teaser rates expire, the card might jump to its regular rate, which could be higher than the rates you were previously paying.

5. Make More Than the Minimum Payment

Credit cards allow you to make minimum payments — small portions of the balance you owe — until your debt is paid off. While this might seem convenient on the surface, this system is stacked in the credit companies’ favor. Making minimum payments can cost more in the long run than making larger payments and paying down debt faster.

That’s because as you make minimum payments, the remaining balance continues to accrue interest. Consider a credit card balance of $5,500 with a 21% interest rate. According to this credit card interest calculator, if you only make minimum payments of $151.25 per month, it will take you 59 months (almost five years!) to pay off your debt of $8,819. And in that time you will have spent $3,319 on interest payments alone.

In an ideal world, you would pay your credit card balance off each month and wouldn’t owe any interest. But, if that’s not possible, consider paying as much as you can to minimize the cost of high interest rates.

6. Find Extra Cash

Finding the cash to pay off your debt can be tough, especially if you’re looking to accelerate your debt payments. The most obvious place to start is by cutting unnecessary expenses.

For example, you might save money on streaming services by dropping some or all of your subscriptions, or give up your gym membership while you’re getting your debt in check. You may also try negotiating lower rates for some necessary expenses such as phone or internet bills, or consider starting a side hustle that can boost your income.

You can also use any money windfalls, such as extra cash from tax returns, bonuses at work, or generous birthday gifts, to help accelerate your debt payments.

7. Avoid Taking on More Debt

While you’re paying off debt, it’s important that you work hard to not add to your debt. If you’re trying to pay off a credit card, you might want to stop using it. You may not want to cancel your credit card, but consider putting it somewhere where it’s not easily accessible. That way you’ll be less tempted to use it for impulse buys.

It can also be helpful to track your spending with a free budget app to help understand where your money is going and how not to increase your debt.

8. Consolidate Debt

Consolidating is another strategy that makes use of lower interest rates to pay off debt.

• When you take out a loan, it will come with a fixed interest rate and a set term. When you consolidate your debts, you are essentially taking out a new loan to pay off debts, hopefully with a better interest rate or term.

• A new debt consolidation loan with a lower interest rate can save you money in the long run, especially if you’re carrying a sizable balance. You may also be able to lower your monthly payments to make a budget more manageable on a month to month basis — or you may be able to shorten your terms, which can let you pay off the loan faster. Do keep in mind extending the term of the loan could lead to lower monthly payments but you may end up paying more in interest over time.

• You may want to consider consolidating if you’ve established your credit history since you took out your loan. That may mean banks are more willing to trust a borrower with a loan and will give them more favorable rates and terms.

• Also, keep an eye on the prime interest rate set by the Federal Reserve. When the Fed lowers interest rates, banks often follow suit, providing you with a possible chance to find personal loan interest rates that are more favorable.

9. Reward Yourself

Paying off debt can be a challenging process. That’s why it’s so important to treat yourself as you reach debt milestones.

Tethering productive behavior to rewards is a process that Wharton business school professor Katherine Milkman calls “temptation bundling.” This process can help you boost your willpower and stick to your goals.

So, choose a reward and tie it to a debt milestone like paying off a credit card, or paying off 10% of your debt. Each of these steps puts you closer to being debt-free, and that’s worth celebrating. When you reach a goal, indulge in a free or budget-friendly reward.

Recommended: Typical Personal Loan Requirements

Debt Payoff Tips

Paying off debt often requires patience and persistence. Here’s some smart advice to address common concerns and help keep you going as you whittle down that debt.

What Are Some Common Mistakes to Avoid When Paying off Debt?

Some common mistakes when paying off debt are hiding from the situation (that is, not looking at how much you owe and creating a plan), taking out high interest payday loans, and, in some cases, taking out a home equity loan. Here’s a closer look at each:

• It can be a common mistake to not dig in, review the full picture, and make a plan. Some people would rather be in denial and just keep paying a little bit here and there. Knowing your debt and developing a way to pay it off can be the best move.

• Taking out a payday loan or other high-interest option to make a payment. This can make a tough situation worse by adding more money owed to your situation. A personal loan might be a better option with lower rates.

• Tapping your home equity. Credit card debt is unsecured; you don’t put up anything as collateral. A home equity loan, however, uses your home as collateral. Yes, a home equity loan can be a helpful option in some situations, but if you use that equity to continue spending at a level your income can’t support, that can mean bigger problems lie ahead. You could wind up losing your home.

How Can I Balance Paying off Debt with Saving for Other Financial Goals?

To manage both debt repayment and saving, it’s important to make sure you keep current on paying what you owe. Next, you might want to create a budget, cut your spending, and automate your finances (which will send some money to savings) to help maintain a good balance. Here’s guidance:

• Create a budget, keep paying off your debt, and work to create an emergency fund (even saving $20 or $25 a month is a good start).

• Commit to cutting your spending. Some people like gamifying this: Say, one month, you vow to not eat dinner out; another month, you decide to forgo buying any new clothes.

• Automate your finances. This can be as simple as setting up a recurring transfer from your checking account to savings just after payday. That whisks some money into savings (a small amount is fine), and you won’t see it sitting in checking, tempting you to spend it.

What Are My Debt Relief Options if I’m Struggling to Make Payments?

Some ways to get help with debt relief can include a balance transfer credit card, a personal loan, a debt management plan, and (if no other options are possible) considering declaring bankruptcy. If you are having a hard time with debt payoff, there are several options:

• As mentioned above, you might take advantage of zero-percent balance transfer credit card offers.

• You can contact your creditors and see if they will lower your interest rate or otherwise reduce your burden.

• You might consider a personal loan (mentioned above) to pay off high-interest debt with a lower-interest loan.

• You could participate in a debt management plan that consolidates your debt into one payment monthly that is then divvied up among those to whom you owe money. Look for a plan that is backed by a reputable organization such as the National Foundation for Credit Counseling (NFCC) or the Financial Counseling Association of America.

• You might decide to declare bankruptcy; the most common form is known as Chapter 7 liquidation, and can get rid of credit card debt, medical debt, and unsecured personal loans. Educate yourself carefully to see if you qualify, and be sure you understand the long-term impact it may have on your personal finances.

The Takeaway

Digging yourself out of debt can be a challenging process, but with a well-crafted plan and discipline, it can be achieved. Evaluate your spending habits, determine how you are going to prioritize your debts, and stick to your plan by setting small, measurable goals. One option people consider is consolidating multiple high-interest debts into a one personal loan with one payment. However, note that extending the loan term could lead to lower monthly payments, but you may end up paying more interest in the long run.

Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.

SoFi’s Personal Loan was named NerdWallet’s 2024 winner for Best Personal Loan overall.

FAQ

Why is it important to have a plan to pay off debt?

It’s important to have a plan to pay off debt so you can be organized and strategic in this effort. Only by knowing the full extent of your debt and your resources can you make a plan. Whether you choose to use a method like the snowball or avalanche technique, take out a personal loan, or try a debt management program, it’s vital to know just where you stand.

What are some strategies for dealing with multiple sources of debt?

If you have multiple sources of debt, you may want to research the snowball, avalanche, and fireball methods of paying down what you owe. These consider such factors as how much you owe and the interest rate you are being charged and can help you prioritize how you repay the debt. These strategies can help focus your efforts and contribute to your success.

How much credit card debt does the average American have?

As of early 2025, the average American is carrying about $6,500 in credit card debt.

*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.

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