Refinance Your Student Loans and Save Thousands of Dollars
About 70 percent of college students are graduating with student loan debt these days. If you’re one of them, it’s well worth your time to consider refinancing.
Refinancing sounds like a long and complicated process, but it’s actually pretty easy. How does student loan refinancing work?
Basically, if you’re approved, a refinancing company will pay off your old loan and give you a new loan at a lower interest rate.
There are a lot of benefits to refinancing. You can get a lower monthly payment, for one. And the reduced interest rate can save you thousands of dollars over the life of your loan – especially if you refinance early on in your repayment. Some companies even offer special benefits to their customers, such as unemployment protection programs.
You generally need to have good or excellent credit in order to refinance your student loans, but it doesn’t hurt to check your eligibility and the companies’ rates – it’s free, and you could potentially save thousands. So round up your student loan information and get started!
So how do you make student loan refinancing work for you?
Make sure that you know whether your student loans are federal or private. If you refinance federal student loans with a private lender, you lose out on their many benefits, like income-based repayment or public service loan forgiveness.
Don’t refinance federal loans unless you’re willing to give up these benefits. Take time to understand the pros and cons of your particular loan and whether refinancing is the right choice for you.
Lastly, make sure you clearly understand how much you’ll save by refinancing.
For example, if you refinance for a longer term than what you currently owe, you could end up spending more in the long run! To compare how much you’ll save over the life of the loan, check out this snazzy refinancing calculator.
To learn more about refinancing your student loans, here are some great articles and resources for you: