Refinancing a student loan can be a confusing and time consuming thing for those that have finished college.
There are a few different routes you can take which all have their own characteristics and will affect your finances in different ways.
Refinancing gives borrowers the opportunity to potentially lower their student loan rate or extend their repayment term. This can mean a lower monthly payment and less money paid toward interest fees.
Both private and federal student loans that were used at a qualifying institution are eligible for refinancing. A qualifying institution typically means a Title IV-accredited school in the United States.
You must be the primary borrower on any loans you wish to refinance. A lender might also require that you’ve already earned your degree, or are close to earning your degree. Some lenders also state a minimum loan amount for refinancing.
What is a good student loan rate right now?
Student loan repayment interest rates are known to fluctuate but anything between five percent and nine percent tends to be viewed as decent.
Refinancing is best to do when you are already feeling financially secure, you have a high interest rate, you can lower the amount of interest paid over the life of the loan and you are trying to get rid of your debt immediately.
Can I refinance my student loans for 30 years?
It is most common to be put on a 10-year repayment plan when you first start trying to refinance your student loans.
There are different time frames available when you seek them out, but it is unlikely that you will find a 30-year repayment plan as that is deemed too long.
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