Refinancing Student Loans: A Comprehensive Guide
Intro
Refinancing student loans is a significant topic that lies at the intersection of personal finance and the rising costs of education. For countless borrowers, the burden of student debt can feel like a heavy weight, with monthly payments often stretching budgets thin. As interest rates fluctuate, and as individuals find themselves in various stages of their careers, options for refinancing become increasingly appealing.
Certain lenders offer better terms than others, and knowing where to look is half the battle. Some people may prefer the familiarity of their bank, while others might opt for the specialized services of credit unions or the convenience of online platforms. The challenge lies in understanding each option's benefits, drawbacks, and the processes involved. In a landscape that is continually changing, staying informed can make a significant difference in one's financial well-being.
In this guide, we will delve into the various platforms and institutions that offer refinancing. We will dissect key terms that come up during the refinancing process, analyze popular products on the market, and explore essential considerations for borrowers. By the end, you will have a much clearer sense of how to maneuver through this multifaceted decision-making landscape.
Investment Dictionaries
Glossary of Key Terms
When venturing into the world of refinancing, itâs crucial to familiarize yourself with the lingo. Hereâs a selection of terms that you may encounter:
- Annual Percentage Rate (APR): This shows the cost of borrowing on a yearly basis, including interest and fees.
- Debt-to-Income Ratio: A measure of how much of your income goes toward paying off debt. Often used by lenders to gauge borrowing capacity.
- Consolidation: The process of combining multiple loans into one. While this can simplify payments, it doesnât always offer lower interest rates.
- Variable Interest Rate: An interest rate that can change over time, often based on market conditions, which might lead to fluctuating payment amounts.
Understanding these terms equips borrowers with the knowledge needed to make calculated choices.
Investment Jargon Explained
Navigating the world of refinancing can sometimes feel like mastering a foreign language. Hereâs what you need to know in plain English:
- Prequalification: This is an informal estimate of how much you might be able to borrow from a lender without a hard credit check. Think of it as a way to gauge interest without fully committing.
- Origination Fee: A fee charged by lenders for processing a loan application. Itâs a one-time charge and can affect the overall affordability of your loan.
- Loan Servicer: This is the company that manages your loan after itâs been disbursed. They take care of billing and other services related to the loan.
- Credit Score: A numerical representation of your creditworthiness, reflecting your credit history and influencing the interest rates youâre offered.
Financial Product Reviews
In-depth Analysis of Popular Products
When it comes to refinancing student loans, a variety of players exist in the market. Below is a closer look at some of the top names to consider:
- SoFi: Known for its member benefits, SoFi offers competitive rates and no origination fees. It provides additional features like career coaching and networking events.
- LendingClub: This peer-to-peer lender allows borrowers to connect with individual investors. They offer flexible terms and potentially lower rates based on your profile.
- Earnest: A unique lender that focuses on personalizing your loan options. They analyze your income and savings to offer a tailored refinancing plan.
- CommonBond: Promises lower rates through a simplified application and focuses on social impact by funding education in underserved areas.
Comparison of Features and Benefits
Understanding the distinct features and perks of these products can help you choose wisely. Hereâs how they stack up:
- Interest Rates: Compare fixed versus variable rates to determine which suit your situation.
- Repayment Terms: Look for flexibility in terms, ranging from a few years to decades. A longer term may reduce your payments but increase the total interest paid.
- Customer Support: An often-overlooked aspectâcheck reviews about customer service. A responsive lender can make a world of difference especially in tough situations.
- Additional Features: Some platforms may provide unemployment protection or allow you to pause payments during financial hardship.
Itâs clear that each lender ticks different boxes when it comes to features, and knowing whatâs vital to you can help navigate the murky waters of student loan refinancing. Assessing these options with a discerning eye can set you on a path toward more manageable debt.
The reflections gathered through this exploration offer the groundwork needed to make informed decisions. Over the coming sections, we will continue dissecting aspects of refinancing that matter most for you.
Understanding Student Loan Refinancing
Navigating the complexities of student loans can sometimes feel like wandering through a maze. Refinancing is a pivotal concept within this arena, offering a pathway to potentially better financial health. By understanding student loan refinancing, borrowers can not only reduce their monthly payments but also adjust the terms to better fit their current financial situations. In essence, it's about taking control of one's debt and seeking more advantageous terms.
Definition of Student Loan Refinancing
At its core, student loan refinancing involves taking out a new loan to replace one or more existing student loans. This new loan is typically secured from a private lender, and it allows borrowers to pay off their previous debts. The crux of refinancing lies in the hope of better interest rates or terms. For example, if someone originally borrowed their student loans at a 7% interest rate, they might refinance to secure a lower rate of around 4% or 5%. This could translate into significant savings over the life of the loan.
Reasons to Consider Refinancing
There are various reasons one might contemplate refinancing their student loans:
- Lower Interest Rates: The primary draw is often the potential for reduced interest rates. By accessing lower rates, you can save a chunk of change in interest payments over time.
- Monthly Payment Flexibility: Opting for refinancing can allow individuals to extend their loan terms. Though this may result in paying more interest in the long run, it could ease immediate financial burdens by reducing monthly payment sizes.
- Consolidation of Loans: Some borrowers are juggling multiple loans with different servicers, creating confusion and hassle. Refinancing can consolidate these into a single payment, simplifying management.
- Diverse Features: Some lenders offer beneficial features like cashback or credit rewards for timely payments; these perks can be enticing.
Potential Savings through Refinancing
When it comes to the financial impact of refinancing, the potential savings can be quite tangible. Letâs break it down:
- Interest Rate Reduction: A lower interest rate can lead to substantial savings, especially if the refinancing happens early in the loan term.
- Monthly Savings: By lowering your monthly payment, it creates space in your budget for other financial commitments, like savings or daily expenses.
- Evaluating Total Costs: It's also valuable to consider how the refinance will affect the total cost of the loan. Even with a lower monthly payment, examine how extending the term might increase total interest paid overall.
"Refinancing can be the silver lining for those looking to unshackle themselves from hefty student loan repayments."
Types of Lenders for Refinancing
When it comes to refinancing student loans, the lender you choose plays a pivotal role in defining your financial future. Each type of lender brings its own set of advantages and considerations to the table. Understanding these differences helps potential borrowers make more informed decisions, especially in a landscape that is teeming with options. Whether you're looking to save a few bucks on interest rates or seeking flexibility in repayment plans, knowing where to look can make all the difference in your refinancing journey.
Traditional Banks
Traditional banks have been a cornerstone of the lending industry, offering a sense of reliability that many borrowers find comforting. Often, they provide competitive interest rates for those with excellent credit scores. In addition to this, banks typically offer a range of financial products, which can make your borrowing experience seamless if you already have an established relationship.
However, while they may seem like a safe bet, traditional banks can also have stringent requirements that may not suit every borrower. For instance, applicants may need to provide extensive documentation to qualify. Furthermore, the approval process can feel like watching paint dry; it often drags on longer than one might anticipate.
Credit Unions
Credit unions are often seen as the underdogs in the lending world. They're not-for-profit institutions, meaning your loan payments directly benefit the community and their members rather than lining the pockets of shareholders. This unique structure can make credit unions a viable alternative for refinancing student loans. They frequently offer lower interest rates and more flexible terms. If youâre a memberâand often you need to be a member to applyâyou may find that their application process is less daunting.
That said, credit unions might not always have the extensive resources or technological advances that some of the larger banks possess. Their online interfaces can vary, and some might feel a bit outdated. Itâs crucial to look past the surface and evaluate whether a credit union can meet your specific needs.
Online Lenders
The rise of online lenders has radically changed the way borrowers approach refinancing. With just a few clicks, you can compare rates from multiple online platforms without leaving the comfort of your couch. This convenience, coupled with often competitive rates, positions online lenders as a compelling choice in the refinancing landscape.
These lenders usually look beyond just credit scores, considering factors like income and job stability. This can be beneficial for those who have a less-than-perfect credit history but still demonstrate a capacity to repay. Nonetheless, while the online experience can be swift and easy, itâs essential to do your homework. Not all online lenders are created equal; customer service and support can vary greatly.
Peer-to-Peer Lending Platforms
Peer-to-peer lending has emerged as an innovative solution for refinancing. On these platforms, individuals can lend money to other individuals through an online service. This model can result in lower interest rates since thereâs no traditional financial institution acting as a middleman. Moreover, it allows a broader range of borrowers to secure loans, even those who may feel lost in the traditional banking system.
However, thereâs a trade-off here. The availability of funds can sometimes fluctuate, impacting the speed at which you can secure a loan. Additionally, since youâre dealing with individual investors, the terms can vary widely from one lending request to another.
"The best borrower is an informed borrower. Know your options, and choose wisely."
The landscape of student loan refinancing is rich with diverse lending options; taking the time to understand each one ensures that youâre not just choosing a lender, but rather aligning your financial future with one that best fits your needs.
Factors to Evaluate When Choosing a Lender
When contemplating student loan refinancing, one might feel like theyâre navigating a maze. The multitude of options and the potential impact on their financial future make selecting the right lender a pivotal decision. Choosing the right lender isnât just about getting a lower interest rate; it encompasses a range of factors that can significantly alter the borrowing experience. From the comprehension of terms to the lender's standing in the market, every detail matters.
Interest Rates and Terms
Interest rates can make or break a refinancing agreement. A smaller percentage can slingshot borrowers into major savings over time, especially when it comes to federal student loans, which often carry higher rates. Comparing fixed vs. variable rates is crucial. Fixed rates provide stability, ensuring consistent monthly payments, while variable rates could lead to more savingsâbut they can also introduce unpredictability into monthly budgeting.
- Fixed Interest Rates: Great for those who want certainty. Monthly payments wonât change.
- Variable Interest Rates: These can start lower but might increase. Good for risk-takers who might pay off loans quicker.
Also, the loan term, the time within which the loan must be repaid, affects the overall cost of borrowing. A shorter loan term usually means higher payments but less cumulative interest. Conversely, longer terms offer lower monthly payments but can inflate the overall amount paid.
"Understand the nuances of your interest rates to truly refine your financial strategies."
Lender Fees and Additional Costs
Fees can sometimes be the silent killers of savings. Borrowers should dig deeper than the interest rates when evaluating lenders. Common fees might include origination fees, late payment penalties, and prepayment penalties. For instance, an origination fee, which is a charge for processing a new loan, can eat into the savings of refinancing.
- Origination Fees: A percentage of the total loan amount, often expressed as a flat fee.
- Late Payment Fees: Can be detrimental if missed due to unforeseen circumstances.
- Prepayment Penalties: A cost if you plan to pay off the loan early, which seems counterintuitive for savings.
When in the market for refinancing, meticulous reading of the fine print is essential. Some lenders may advertise low rates but load their agreements with hefty fees.
Customer Service and Responsiveness
The landscape of customer service can reveal a lot about a lender. Quick responses to inquiries, clear communication, and accessible support via phone or chat can profoundly impact oneâs everyday experience. A reputable lender should be easy to reach and willing to provide assistance when questions or problems arise.
Factors to consider include:
- Availability: Are representatives available outside of regular business hours?
- Communication Channels: Can you reach out through multiple platformsâsuch as phone, email, or live chat?
- Service Reviews: What do other customers say about their experiences?
A lender's customer service reputation can mean the difference between a smooth refinancing experience and a frustrating ordeal.
Lender Reputation and Reviews
Before signing on any dotted lines, itâs wise to get a pulse on a lenderâs reputation. Online reviews can provide a wealth of information - but just like your favorite restaurant, take claims with a grain of salt. Some sites aggregate user reviews, and these can be insightful. Evaluating overall ratings on platforms such as Reddit and checking specialized financial forums can help gauge a lenderâs reliability.
- Check Ratings: Look for consistent positive feedback and the manner in which the lender resolves complaints.
- Personal Testimonials: These can offer real-world insights into the refinancing process, much better than flashy ads.
- Third-Party Validators: Sources like the Better Business Bureau provide additional layers of credibility.
Overall, evaluating a lender's reputation can protect borrowers from potential pitfalls that lead to unanticipated stress in their financial journeys.
Eligibility Criteria for Refinancing
When considering the refinancing of student loans, understanding the eligibility criteria plays a pivotal role. This section dissects the essential factors lenders look at, which can ultimately determine whether your application gets the green light or is sent back to the drawing board. Without meeting certain criteria, the potential benefits of refinancing may slip right through your fingers.
Credit Score Requirements
One of the first hurdles in the refinancing process is the credit score requirement. Lenders typically use your credit score as a barometer for your financial trustworthiness. A higher score showcases your reliability and ability to manage debts responsibly.
A good score usually lands between 700 to 740, which puts you in a favorable position for lower interest rates. If your score is less than that, you might find yourself faced with steeper rates, which can defeat the purpose of refinancing. If a borrower's credit score is a bit shaky, it may be wise to spend some time improving it before proceeding. This might involve paying down credit card balances or addressing any unanswered inquiries on your report.
"Just as a smooth road makes for a quicker journey, a solid credit score can fast-track your refinancing process."
Income Considerations
Your income plays a crucial role in lenders' decision-making. They want reassurance that you have a reliable stream of income to make your monthly payments. Generally, a steady job and a consistent income will bolster your application.
Lenders often seek a debt-to-income ratio that doesnât exceed 43%, indicating a good balance between your earnings and existing debt. If you presently have other loans or significant expenses, it might be wise to reassess your situation before applying, as higher debt could serve as a red flag for potential lenders.
Employment Status
Employment status is often intertwined with income considerations. Many lenders prefer borrowers who have stable full-time jobs, as this provides an added layer of confidence that the payments will be made consistently. If youâre freelance or in a temporary position, ensuring your income is documented properlyâsuch as showing tax returns for the last couple of yearsâcan support your application.
Also, be prepared to explain any gaps in your employment history. Lenders may want to understand the context behind a fluctuating career path.
Existing Loan Details
The specifics of your existing loans are another critical point of evaluation. Lenders will closely examine types of loansâfederal or private, as well as the overall loan balance and repayment history.
If your current loans are in good standing and your payment history is spotless, it'll likely work in your favor. However, having loans that are past due or in default can bring a heavy cloud over your application.
Key Points to Note:
- Types of Loans Matter: The type of loan youâre looking to refinance can influence your eligibility.
- Balance Considerations: Lenders often prefer balances that suggest you're not heavily indebted overall.
- Repayment History: A clean repayment record signals to lenders that you're a responsible borrower.
In summary, understanding and meeting the eligibility criteria for refinancing is crucial for those looking to optimize their student loan repayment strategy. By keeping an eye on your credit score, showcasing stable income, maintaining a solid employment status, and managing existing loans wisely, you can greatly improve your chances of securing a favorable refinancing deal.
The Application Process for Refinancing
The application process for refinancing student loans is a pivotal step in the journey towards financial relief. Itâs not just about filling out forms; it encompasses careful planning, thorough documentation, and a keen understanding of your financial landscape. Proper execution of this process can lead to lower rates, better terms, or even an opportunity to consolidate all your loans into one single payment. Letâs break this down into manageable parts to clarify what to expect and how to navigate these waters effectively.
Preparing Documentation
When gearing up for the refinancing application, preparation is king. Youâll need to assemble a mountain of documentation that proves your financial stability and ability to repay the new loan. Typical documents include:
- Pay stubs: These serve as proof of income. Lenders often ask for at least two monthsâ worth.
- Tax returns: Generally, the last two years need to be submitted. This gives lenders a broader picture of your financial health.
- Bank statements: Recent statementsâusually from the last three monthsâcan help demonstrate your savings and spending habits.
In some cases, if youâre self-employed, youâll navigate a slightly trickier terrain. You may need to provide additional documents, like profit and loss statements, or 1099 forms. Keep everything organized, perhaps in a digital folder or a good old-fashioned binder, so when the time comes, you can submit your documents swiftly.
Submitting Applications
Once your documents are gathered, itâs time to hit the submit button. Most lenders will allow you to apply online. The importance of this stage cannot be overstated. Itâs crucial to:
- Choose the right lenders: Not all lenders are created equal in terms of interest rates and loan terms. You might want to send applications to a mix of traditional banks and online lenders to compare offers.
- Fill in the forms accurately: Even a small mistake could delay your application or even lead to denial. Pay special attention to numbers and contact information.
- Keep track of timelines: Make note of when youâve applied. Some lenders may give you a pre-approval, which is a good sign that you're on the right path.
After you submit, sit backâbut donât get too comfortable. Reach out to lenders if you havenât heard back within a reasonable time frame.
Loan Approval Timeline
The timeline from application to approval can vary widely based on the lender. Generally, it could take anywhere from a few days to several weeks. Keep in mind:
- Initial review: A lender will first conduct an overview of your application and documents. This might take a few days.
- Underwriting process: This is where the lender digs deeper into your financial history. Depending on how busy the lender is, this might take a week or two.
- Final decision: After all is said and done, expect to receive a decision. If approved, read the terms carefully to ensure they align with what you were expecting.
"Understanding the application process is critical; it can mean the difference between a lower interest rate and continued financial strain."
Impact on Credit Score
When considering refinancing student loans, it's crucial to understand the impact on your credit score. This can be a significant factor in your overall financial health. A credit score, after all, serves as a key indicator for lenders, helping to determine the risk they take on when offering loans. Navigating this landscape effectively can open new doors, potentially leading to lower interest rates and favorable terms in the long run.
Understanding Hard Inquiries
One of the immediate effects of applying for loan refinancing is the hard inquiry on your credit report. Every time you apply for a loan or credit line, the lender performs a hard inquiry to assess your creditworthiness. While a single inquiry might drop your score by a few points, multiple inquiries could send it tumbling further.
It's a delicate balancing act. On one hand, shopping around for the best refinancing deal is wise; on the other, excessive hard inquiries might raise red flags for lenders. Thus, itâs prudent to limit the number of applications you submit within a short timeframe. By doing so, you can minimize the negative effects on your score while still exploring various options.
Long-term Credit Score Effects
The long-term effects of student loan refinancing on your credit score often depend on how well you manage the new loan. Refinancing can lead to a lower interest rate, enabling you to pay off your debt faster. When managed wisely, this can have a positive ripple effect on your credit score due to reduced overall debt levels.
Additionally, consolidating multiple loans into a single one streamlines your repayment process. This simplicity can enhance your payment history, as timely payments are a significant contributor to your credit score.
However, there are potential downsides to consider as well. For instance:
- Length of Credit History: If you close old accounts after refinancing, you may shorten your credit history, which can negatively impact your score.
- Debt-to-Income Ratio: Keeping tabs on how refinancing affects your overall debt-to-income ratio is vital. Lenders look at this ratio when evaluating your creditworthiness.
"Your credit score isnât a mere number; itâs a reflection of your financial life decisions. Drive it wisely."
Understanding the implications on your credit score will enable you to refine your refinancing strategy, achieving both immediate relief and long-term stability.
Long-term Considerations of Refinancing
When the term refinancing comes up, itâs easy for borrowers to get caught up in the immediate benefits like lower monthly payments or better interest rates. However, understanding the long-term considerations is equally critical. This is especially true since refinancing can drastically reshape not just your present finances, but your entire financial future.
One essential aspect is how refinancing might affect eligibility for loan forgiveness programs. Many borrowers are drawn to public service loan forgiveness and similar programs, but itâs important to recognize that refinanced loans could change things. In some cases, refinanced loans lose eligibility for forgiveness programs that federal loans qualify for. If youâre in a career path that may allow for forgiveness, this could be a deal-breaker.
Another significant point is that post-refinancing, managing debt effectively becomes even more crucial. You might find yourself with lower payments, which could tempt you into a false sense of security. Understanding budgeting post-refinancing helps ensure you donât end up back in a financial predicament. Overextending yourself or accruing more debt can be a slippery slope.
"Before making any economic decision, think many steps ahead. The road to financial stability is often winding, and the consequences of your actions can stretch far beyond today."
Potential Impact on Loan Forgiveness Opportunities
Loan forgiveness is like a shining carrot for many student loan borrowers, especially those working in public service or specific nonprofit sectors. Federal student loans often provide opportunities for forgiveness after a specified period of on-time payments under qualifying repayment plans. However, once you refinance those loans into a private one, you're waving goodbye to that very chance.
Consider scenarios: if you work as a teacher or in a nonprofit, refinancing could mean missing out on years of potential forgiveness. This decision isnât just about the here and now; it reflects a long-term financial strategy. Understanding the implications here is key to making informed choices based on your career trajectory and goals.
Managing Debt Post-Refinancing
After refinancing, creating a diligent plan to manage your debt is critical. Itâs too easy to assume that just because you have a new interest rate, everything is in the clear. Often people feel a bit of relief with lower payments, and that can lead to a sense of complacency.
Tips for managing debt effectively include:
- Reassessing your budget: Post-refinancing is a prime time to go back to the drawing board and evaluate your spending habits. Regularly tracking your expenses ensures that youâre sticking to your budget and not inadvertently accruing new debt.
- Setting up an emergency fund: This fund acts like a safety net. If unexpected expenses pop up, having savings could help you avoid additional debt.
- Making extra payments if possible: Consider making additional payments toward the principal when you can. This reduces the total interest paid over the life of the loan and can shrink the time frame for repayment.
By not just focusing on the immediate relief refinancing may offer but by digging deep into the long-term effects of your choices, you are setting a solid foundation for your financial future. Understanding these intricacies gives you a clearer lens through which to navigate the complex landscape of student loans.
Common Mistakes to Avoid
Refinancing student loans is not just a quick fix. It requires forethought and careful consideration. Avoiding common pitfalls is crucial for anyone looking to embark on this financial journey. As borrowers make decisions, being aware of potential errors can result in significant savings or even prevent unnecessary stress. Formulating a strategy on how you approach refinancing could mean the difference between a burden and relief.
Rushing into a Decision
When it comes to refinancing student loans, patience is a virtue. One of the primary mistakes is rushing into a decision without fully understanding the landscape. Some borrowers may be overly eager to lower their monthly payments or interest rates, leading them to leap at the first offer that comes their way.
However, this haste can quickly backfire. Take the time to evaluate your current financial situation and potential lender options. Itâs essential to assess your existing loans and what changes refinancing would bring. Remember, a lower interest rate doesnât necessarily mean better terms if it comes with longer repayment periods.
"Act in haste, repent at leisure" â a phrase that rings especially true when managing your debts.
Ignoring the Fine Print
Some borrowers might only skim through the terms and conditions of refinancing offers. Ignoring the fine print is a grave mistake. Hidden fees, penalties for early repayment, and other conditions can significantly affect your refinancing experience.
Always read the documents thoroughly and donât hesitate to ask questions. Clarifying any uncertainties before signing on the dotted line is invaluable. By doing so, you can explore all aspects, ensuring youâre not missing any critical information that might affect your financial future. If it sounds too good to be true, it probably is. Look into the details closely, because sometimes the scorpion is hiding in the flowers.
Failing to Compare Multiple Options
In a world where we're flooded with choices, it can be easy to settle for the first refinancing option that appears attractive. However, failing to compare multiple offers is a major oversight. Different lenders offer varying interest rates, terms, and service practices.
Taking the time to gather and evaluate several offers can provide a clearer picture of whatâs available. Consider using comparison websites that allow you to assess different lenders side by side. You also might discover lender features that you hadnât previously considered, which could lead to a significant long-term benefit for you. Remember, knowledge is power. The more you know, the better decisions you can make.
End
Navigating the world of student loan refinancing can feel like walking through a maze; however, understanding the various options and their implications can significantly ease the journey. This article sheds light on the myriad lenders available, offering insights that can empower borrowers to make educated choices. The financial landscape offers plenty of refinancing opportunities, but the devil is truly in the detailsâknowing which lender can best meet your financial needs is paramount.
Recap of Key Takeaways
- Types of Lenders: Options range from traditional banks and credit unions to online lending platforms and peer-to-peer models. Each has unique advantages and disadvantages that might suit different borrower needs.
- Eligibility Criteria: A firm grasp on credit score requirements, income levels, and employment status is vital for determining where and how to apply for refinancing.
- Application Process: Preparing documentation and knowing what to expect during the application process can streamline efforts and reduce stress.
- Credit Score Impact: Understanding how refinancing might affect a borrower's credit scoring is essential for long-term financial health.
- Common Mistakes to Avoid: Being aware of pitfalls, like rushing into decisions or not comparing options, can save borrowers from potential regrets in the future.
Encouragement for Informed Decision-Making
Taking the plunge into refinancing requires a good dose of patience and due diligence. Itâs crucial to weigh the pros and cons before committing to a lender. Look beyond flashy interest rates and consider the fine print: any hidden fees, the reputation of the lender, and customer service practices should not be overlooked.
Informed decision-making can lead to a more advantageous refinancing experience. Borrowers should tap into available resourcesâbe it financial advisors or online forumsâto gather insights and share experiences. The right choice can not only alleviate monthly burdens but also pave the way for viable financial stability in the long run.
Ultimately, the more educated the borrower, the better the chance of securing a favorable deal that aligns with personal financial goals.
