Having to work multiple jobs and scraping by paycheck to paycheck, with the lingering worry that you’ll probably never be able to buy a house.
Many in the LGBTQ community are so concerned with such fallout from their student loans that they regret borrowing at all. In fact, 54% of those surveyed said they wish they’d avoided education debt, only a slight decrease from the 60% figure cited in our 2018 survey of LGBTQ borrowers.
Student loans weighed heavily on respondents from all income levels, particularly because of the specific problems LGBTQ students endure, such as discrimination in their own home and when seeking outside help with their finances.
Unfortunately, LGBTQ community members also reported feeling behind on other financial goals, including retirement planning, due in no small part to their student loan, credit card and other debt.
- About 3 in 10 LGBTQ borrowers say their student loan debt is unmanageable. Slightly less — 23% — feel their debt is “very manageable,” while most (48%) said their debt is “somewhat manageable.”
- Despite their regrets about borrowing, 62% are glad they went to college. Most (58%) reported feeling accepted by their college peers — although more than 1 in 10 did not feel accepted.
- Roughly 4 in 10 LGBTQ borrowers said they’ve been denied financial help due to their sexual orientation. About 14% of them said they’d experienced this discrimination on multiple occasions.
- Student loans have also stopped 87% of respondents from reaching key financial milestones. Specific goals missed due to student debt include homebuying (41%), moving out (27%), buying a first car (23%), starting a family (19%) and getting married (18%).
- Nearly 6 in 10 LGBTQ borrowers also have other types of debt. Credit card debt (63%) is by far the most common, but other sources include auto loans (38%), personal loans (20%) and mortgages (16%).
- The majority of borrowers in the LGBTQ community (65%) are familiar with student loan refinancing, but only 38% have refinanced their debt. Those who have refinanced said they mainly did so to lower monthly payments or lower their interest rate. Ultimately, 63% of those who refinanced said refinancing helped them move closer to their financial goals.
Many LGBTQ borrowers have more student loan debt than they can handle
The LGBTQ community includes many student loan borrowers with regrets — again, 54% polled say they wish they could have a redo.
“I regret taking out my student loans because my degree didn’t help me get a well-enough-paying job to cover the cost of living, plus my student loan debt,” said one respondent. “Now I am stuck working two jobs just to stay above water, which is very frustrating.”
Although the reasons for regret vary, having taken on too much debt is a common theme. Nearly 29% of LGBTQ borrowers feel their debt isn’t manageable, though a plurality of respondents (48%) describe their debt as “somewhat manageable.”
Finding a well-salaried job isn’t necessarily a problem unique to LGBTQ borrowers — among all college seniors with loans to repay, about 7 in 10 expressed doubt they’d be able to make ends meet, according to a recent Student Loan Hero survey.
Still, LGBTQ professionals undoubtedly face more obstacles in the workplace than the average college graduate. In fact, 1 in 4 LGBTQ workers report facing discrimination at their job within the last five years, according to nonprofit Out & Equal Workplace Advocates’ 2019 report.
But despite some regrets, 62% of borrowers in the LGBTQ community say they’re glad they attended college. For some, it’s one of the places in society where they felt most accepted — about 58% reported feeling welcomed by peers on campus.
Some LGBTQ borrowers get turned away by financial professionals
Unfortunately, many LGBTQ members in debt have found a less-welcoming atmosphere away from their college campus. About 40% of the borrowers we surveyed said their sexual orientation caused others to decline to offer financial help. And 14% report multiple instances of this type of discrimination.
In fact, the number of LGBTQ individuals denied financial assistance due to their sexual orientation increased from our 2018 survey, from 32% to 40%.
“Reaching out for financial help is hard enough. Throw in discrimination and homophobia, and it can be downright miserable,” said David Rae, the founder of a Los Angeles-based wealth management firm. “Look for resources specifically tailored for the LGBT community. I’m not alone as an out and proud financial planner.”
Chicago-based financial planner Brian Thompson, whose clients include LGBTQ couples, agrees that more financial-service providers are reaching out to the community. “My advice is to look for non-traditional places. We’re out there and eager to help.”
And there are some encouraging signs out there, including the growing number of scholarships reserved for LGBTQ undergrads.
And some also lack key support from family
Aside from facing the possibility of discrimination in public settings, 60% of our survey respondents also reported feeling at least partially unwelcome within their own families. In addition, about 28% reported that they have been kicked out of the home because of their sexuality.
A lack of family support could harm LGBTQ individuals right out of the gate. Without parental support, students could end up taking out more loans. Parents can also play a broad role in securing financial aid, such as by providing their information on the Free Application for Federal Student Aid (FAFSA).
Without mom, dad or more family in their corner, LGBTQ borrowers’ repayment could also be harmed. Those who report not feeling at least somewhat accepted by their families are more likely to say their debt is unmanageable (38%) than those who feel accepted at home (26%). They’re also more likely to report not being on the right track for retirement (62% versus 45%).
“Knowing that people will have your back, or possibly provide financial support if things get hairy, helps keep us in a healthy mental state,” said John Schneider, a co-host of the Queer Money podcast. “In addition, those that have familial support are more likely to also have financial support when they leave the home, compared to those that are leaving because their home is not a welcoming place.”
And there may be other less-obvious, and potentially dangerous, consequences. LGBTQ student borrowers who don’t feel supported by their families are twice as likely to report that their debt has kept them from leaving a bad relationship. Overall, 15% said their student loans had kept them from walking away from an ill-fitting partner.
With overwhelming debt comes unachieved financial goals
With a heavy student loan debt burden in some cases and a lack of a support system in others, it’s no surprise that 87% of LGBTQ borrowers are falling behind on their other financial goals.
Most notably, 41% of respondents say their debt had stopped them from being able to buy a home. Other financial goals left unmet include:
- Pursuing passions (35%)
- Traveling (26%)
- Moving out (27%)
- Buying a first car (23%)
- Starting a family (19%)
- Getting married (18%)
At the same time, student loans aren’t the only money-related problem for many of the LGBTQ individuals we surveyed. About 57% report being burdened by other types of debt. Credit card debt is far and away the biggest bugaboo of those respondents, at 63%, although that figure was down significantly from 79% in our 2018 survey results.
“This is the first bit of good credit-card-debt news we’ve seen in a while,” said Schneider, also a founder of Debt Free Guys, adding that perhaps a somewhat stronger economy may have helped matters.
In 2019, auto loans (38%), personal loans (20%), mortgages (16%) and shorter-term loans (15%) also accounted for LGBTQ borrowers’ debt.
Student loans and secondary debt have also dimmed many LGBTQ borrowers’ hopes in terms of saving for retirement: Nearly half of the people we surveyed (48%) don’t think they’re on the right track, with 56% saying they don’t even have a retirement investment account, such as a 401(k) or IRA.
“I can’t save,” one respondent told us. “I contribute a small amount to a 401(k), but it’s not significant enough for retirement — yet [it’s] all I can barely afford.”
Finding student loan relief via refinancing, other strategies
For LGBTQ borrowers, there’s no single solution to all of their student loan concerns. Some could benefit from pursuing student loan forgiveness or enrolling in income-driven repayment (if they have federal student loans), while others might be better off cutting expenses and throwing extra income at their outstanding balance.
For creditworthy LGBTQ borrowers — or those with creditworthy cosigners — student loan refinancing could offer some relief. It allowed some of the survey’s respondents to either decrease their monthly payment or reduce their interest rate, along with providing the additional perk of consolidating multiple older loans into one new, simpler repayment.
While 65% of the borrowers surveyed say they are familiar with the practice of refinancing, only about 38% report having gone ahead with it. That’s a significant departure from the approximate 66% who said they refinanced in our 2018 LGBTQ survey.
Of those who did refinance in this latest survey, however, 63% say it helped them advance toward achieving other financial goals.
Interested in refinancing student loans?Here are the top 9 lenders of 2022!
|Lender||Variable APR||Eligible Degrees|
|1.74% – 9.51%1||Undergrad & Graduate|
|1.89% – 5.90%2||Undergrad & Graduate|
|2.05% – 5.25%3||Undergrad & Graduate|
|1.74% – 7.99%4||Undergrad & Graduate|
|1.74% – 7.99%5||Undergrad & Graduate|
|1.74% – 7.99%6||Undergrad & Graduate|
|1.86% – 6.01%||Undergrad |
|1.74% – 7.99%7||Undergrad & Graduate|
|1.99% – 8.38%8||Undergrad & Graduate|
|Check out the testimonials and our in-depth reviews!
1 Important Disclosures for Splash Financial.
Splash Financial Disclosures
Terms and Conditions apply. Splash reserves the right to modify or discontinue products and benefits at any time without notice. Rates and terms are also subject to change at any time without notice. Offers are subject to credit approval. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet applicable underwriting requirements. Not all borrowers receive the lowest rate. Lowest rates are reserved for the highest qualified borrowers. If approved, your actual rate will be within a range of rates and will depend on a variety of factors, including term of loan, a responsible financial history, income and other factors. Refinancing or consolidating private and federal student loans may not be the right decision for everyone. Federal loans carry special benefits not available for loans made through Splash Financial, for example, public service loan forgiveness and economic hardship programs, fee waivers and rebates on the principal, which may not be accessible to you after you refinance. The rates displayed may include a 0.25% autopay discount
The information you provide to us is an inquiry to determine whether we or our lenders can make a loan offer that meets your needs. If we or any of our lending partners has an available loan offer for you, you will be invited to submit a loan application to the lender for its review. We do not guarantee that you will receive any loan offers or that your loan application will be approved. Offers are subject to credit approval and are available only to U.S. citizens or permanent residents who meet applicable underwriting requirements. Not all borrowers will receive the lowest rates, which are available to the most qualified borrowers. Participating lenders, rates and terms are subject to change at any time without notice.
To check the rates and terms you qualify for, Splash Financial conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, the lender will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
Splash Financial and our lending partners reserve the right to modify or discontinue products and benefits at any time without notice. To qualify, a borrower must be a U.S. citizen and meet our lending partner’s underwriting requirements. Lowest rates are reserved for the highest qualified borrowers. This information is current as of June 1, 2022.
2 Important Disclosures for Laurel Road.
Laurel Road Disclosures
All credit products are subject to credit approval.
Laurel Road began originating student loans in 2013 and has since helped thousands of professionals with undergraduate and postgraduate degrees consolidate and refinance more than $4 billion in federal and private school loans. Laurel Road also offers a suite of online graduate school loan products and personal loans that help simplify lending through customized technology and personalized service. In April 2019, Laurel Road was acquired by KeyBank, one of the nation’s largest bank-based financial services companies. Laurel Road is a brand of KeyBank National Association offering online lending products in all 50 U.S. states, Washington, D.C., and Puerto Rico. All loans are provided by KeyBank National Association, a nationally chartered bank. Member FDIC. For more information, visit www.laurelroad.com.
As used throughout these Terms & Conditions, the term “Lender” refers to KeyBank National Association and its affiliates, agents, guaranty insurers, investors, assigns, and successors in interest.
Assumptions: Repayment examples above assume a loan amount of $10,000 with repayment beginning immediately following disbursement. Repayment examples do not include the 0.25% AutoPay Discount.
Annual Percentage Rate (“APR”): This term represents the actual cost of financing to the borrower over the life of the loan expressed as a yearly rate.
Interest Rate: A simple annual rate that is applied to an unpaid balance.
Variable Rates: The current index for variable rate loans is derived from the one-month London Interbank Offered Rate (“LIBOR”) and changes in the LIBOR index may cause your monthly payment to increase. Borrowers who take out a term of 5, 7, or 10 years will have a maximum interest rate of 9%, those who take out a 15 or 20-year variable loan will have a maximum interest rate of 10%.
KEYBANK NATIONAL ASSOCIATION RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE.
This information is current as of April 29, 2021. Information and rates are subject to change without notice.
3 Important Disclosures for LendKey.
Refinancing via LendKey.com is only available for applicants with qualified private education loans from an eligible institution. Loans that were used for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not eligible for refinancing with a lender via LendKey.com. If you currently have any of these exam preparation loans, you should not include them in an application to refinance your student loans on this website. Applicants must be either U.S. citizens or Permanent Residents in an eligible state to qualify for a loan. Certain membership requirements (including the opening of a share account and any applicable association fees in connection with membership) may apply in the event that an applicant wishes to accept a loan offer from a credit union lender. Lenders participating on LendKey.com reserve the right to modify or discontinue the products, terms, and benefits offered on this website at any time without notice. LendKey Technologies, Inc. is not affiliated with, nor does it endorse, any educational institution.
Subject to floor rate and may require the automatic payments be made from a checking or savings account with the lender. The rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is canceled, any increase will take the form of higher payments. The lowest advertised variable APR is only available for loan terms of 5 years and is reserved for applicants with FICO scores of at least 810.
As of 5/17/2022 student loan refinancing rates range from 2.05% APR – 5.25% Variable APR with AutoPay and 2.49% APR – 7.93% Fixed APR with AutoPay.
4 Important Disclosures for Navient.
5 Important Disclosures for SoFi.
Fixed rates range from 3.49% APR to 7.99% APR with a 0.25% autopay discount. Variable rates from 1.74% APR to 7.99% 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.
6 Rate range above includes optional 0.25% Auto Pay discount. Important Disclosures for Earnest.
Student Loan Refinance Interest Rate Disclosure Actual rate and available repayment terms will vary based on your income. Fixed rates range from 3.24% APR to 8.24% APR (excludes 0.25% Auto Pay discount). Variable rates range from 1.99% APR to 8.24% 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. Let us know if you have any questions and feel free to reach out directly to our team.
7 Important Disclosures for Purefy.
Purefy Student Loan Refinancing Rate and Terms Disclosure: Annual Percentage Rates (APR) ranges and examples are based on information provided to Purefy by lenders participating in Purefy’s rate comparison platform. For student loan refinancing, the participating lenders offer fixed rates ranging from 2.73% – 7.99% APR, and variable rates ranging from 1.74% – 7.99% APR. The maximum variable rate is 25.00%. Your interest rate will be based on the lender’s requirements. In most cases, lenders determine the interest rates based on your credit score, degree type and other credit and financial criteria. Only borrowers with excellent credit and meeting other lender criteria will qualify for the lowest rate available. Rates and terms are subject to change at any time without notice. Terms and conditions apply.
8 Important Disclosures for Citizens.
Education Refinance Loan Rate Disclosure: Variable interest rates range from 1.99%-8.38% (1.99%-8.38% APR). Fixed interest rates range from 2.99%-8.63% (2.99%-8.63% APR).
IS Variable Rate Disclosure: Variable Rates advertised are based on the one-month London Interbank Offered Rate (“LIBOR”) published in The Wall Street Journal on the twenty-fifth day, or the next business day, of the preceding calendar month. As of December 1, 2021, the one-month LIBOR rate is 0.09%. Variable interest rates will fluctuate over the term of the loan with changes in the LIBOR rate, and will vary based on applicable terms, level of degree and presence of a co-signer. Your final variable rate may be based upon the 30-day average SOFR index, as published by the Federal Reserve Bank of New York. The maximum variable rate is the greater of 21.00% or Prime Rate plus 9.00%.
ERL Variable Rate Disclosure: Variable interest rates are based on the 30-day average Secured Overnight Financing Rate (“SOFR”) index, as published by the Federal Reserve Bank of New York. As of May 1, 2022, the 30-day average SOFR index is 0.29%. Variable interest rates will fluctuate over the term of the loan with changes in the SOFR index, and will vary based on applicable terms, level of degree and presence of a co-signer. The maximum variable interest rate is the greater of 21.00% or the prime rate plus 9.00%.
Fixed Rate Disclosure: Fixed rate ranges are based on applicable terms, level of degree, and presence of a co-signer.
Lowest Rate Disclosure: Lowest rates are only available for the most creditworthy applicants, require a 5-year repayment term, immediate repayment, a graduate or medical degree (where applicable), and include our Loyalty and Automatic Payment discounts of 0.25 percentage points each, as outlined in the Loyalty Discount and Automatic Payment Discount disclosures. Rates are subject to additional terms and conditions, and are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change.
Federal Loan vs. Private Loan Benefits: Some federal student loans include unique benefits that the borrower may not receive with a private student loan, some of which we do not offer. Borrowers should carefully review federal benefits, especially if they work in public service, are in the military, are considering possible loan forgiveness options, are currently on or considering income based repayment options or are concerned about a steady source of future income and would want to lower their payments at some time in the future. When the borrower refinances, they waive any current and potential future benefits of their federal loans. For more information about federal student loan benefits and federal loan consolidation, visit http://studentaid.ed.gov/. We also have several resources available to help the borrower make a decision on our website including Should I Refinance My Student Loans? and our FAQs. Should I Refinance My Student Loans? includes a comparison of federal and private student loan benefits that we encourage the borrower to review.