Refinance Student Loan

How to Refinance Your Student Loan

­Most of the students can refinance student loans to reduce monthly loan payments.  The loan student loan consolidation is the most common way banks allow one to refinance their loan with. 

Things to Consider for Student Loan Refinance

 

  • You should consider refinancing your federal student loans and your private student loans separately.
  • Federal student loans can be refinanced at a much lower rate than the private student loans. If you refinance them along with the private student loan your average interest rate may be higher.
  • You should also consider any deferment periods you may have left.  Because once you refinanced or consolidated a student loan you will lose the deferment period.
  • For private student loans, your credit score will matter.  Make sure that you maintain a good credit and there are no bad credit reports on your credit.
  • Refinancing a student loan may also result into losing any deferment periods which you may have qualified for during unemployment or financial hardships.  Therefore, you should carefully evaluate those.
  • Also learn about any refinance fees and early payment penalties.­

Lowering Monthly Payments of Your Student Loan

On a side note, ­you can also use student loan refinance to lower your monthly payments either by getting a lower interest or increasing the term of your loan.  However, you should keep in mind that if you increase the term, then you may end up paying much more money in interest in the long run.