Important Considerations For Refinancing Your Student Loan

One of the most challenging responsibilities for college graduates is managing their student loan repayments. This is particularly the case when they have several loans that need to be paid off. Keeping tabs on each loan can be difficult, and the repayment bills are often quite expensive.

student loan debt

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The good news is that you have options to help you better manage your monthly payments; you can refinance and consolidate your student loans.

Refinancing involves getting a new loan that you use to pay off the first loan. The benefit is that you get the interest rate is lower, so you can save thousands of dollars throughout the life of the loan. Consolidation is recommended if you have several loans to pay off, as it involves combining all the loan balances and refinancing as one loan.

While refinancing your student loan may sound like music to your ears, it’s not for everyone. In fact, depending on your situation, you may end up paying more for refinancing than you would have for the original loan. Brianna McGurran provides a simple guide for deciding whether refinancing is right for you:

Use This Infographic to Decide If You Should Refinance Your Student Loans

Refinancing your student loans could come with a big payoff, but it also comes with big changes: a new lender, new repayment term and new interest rate. Refinancing federal loans also means losing certain benefits.

NerdWallet is here to help you consider the pros and cons, and navigate the process if you decide to go for it. Use this infographic to determine if refinancing is a good option for you, and then read on to learn more. Check out the infographic here…

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You may have a combination of federal and private student loans to pay off. It’s important to note that federal loans come with a variety of benefits that will be lost should you refinance. Federal government does not refinance loans, so you’ll have to do that with a credit union, bank or other refinancing company. Michael Lux offers his advice on refinancing federal loans:

How to Refinance Federal Student Loans at a Lower Interest Rate

Refinancing your federal student loans can be a savvy financial move. The refinancing process allows borrowers to lock in lower interest rates and get debt free faster. Though there are a few landmines that should be avoided, the refinancing process is relatively simple and painless. Read more here…

One reason not to refinance a federal loan is the perks you’ll lose out on. Some of them include loan forgiveness after 120 payments if you’ve been working in the public sector, loan forgiveness for teachers that work in schools serving students from low-income families, and even reduced monthly payments if you are facing financial hardship.

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However, these perks will not apply to all borrowers, so it’s important to know just what benefits you qualify for, if any. Additionally, some private lenders offer their own perks that would be of actual benefit to you.

Wondering where to refinance? Andrew Josuweit highlights 6 of the best banks when it comes to student loan refinancing:

6 Best Banks to Refinance and Consolidate Student Loans in 2016

Finding the right bank to refinance or consolidate your student loans is confusing.

Fortunately, we’ve highlighted the six best banks and lenders to help you refinance and consolidate both private and federal student loans, based on your financial situation. Read on for the 6 best refinance banks for student loans…

Knowing your options and where you stand allows you to determine what approach to repaying your student loan is best for you. As such, it’s important to take the time to do your research and make the best possible decision.

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