Articles Comments

Debt Relief – Insolvency – Bankruptcy Information » Student Loan Help » Are there advantages to refinancing student loans?

Are there advantages to refinancing student loans?

I need to know the truth about whether it is worth it to refinance my current student loans?

RELATED POSTS:

  1. Ever heard of refinancing student loans through the government? I was talking with a co-worker about my student loan debt problem. He said I could finance all my student...

  2. Is there a new rule (or law) about refinancing under 20,000 in student loan debt that happened on Oct 1? I started doing a refinance of my student loans prior to Oct 1 but there been a lot of “needing...

  3. are there any lenders that do federal student loan consolidation? not private loans? it seems like there aren’t any lenders that do federal student loan consolidation programs. Are there any out there? not...

  4. Is student loan still tax deductable when refinancing a student loan with a personal loan? My daughter has two very high interest student loans. Her credit won’t let her do anything, but I can “refinance”...

  5. Student Loans : Student Loan Consolidation Student loan consolidation is a great way to get a lower interest rate, as a reputable consolidation company will...

Written by

Filed under: Student Loan Help · Tags: , , , ,

4 Responses to "Are there advantages to refinancing student loans?"

  1. Jdub says:
    Now that all federal student loans have a fixed interest rate, the only reasons to consolidate a loan are to help with default issues, have all your loans with one lender or take advantage of some repayment incentives (ie if you autodebit, receive .25% off your monthly payments, etc.). Otherwise, it doesn’t help the student or parent borrower.
  2. Bobby L says:
    it is not worth it until you are COMPLETELY finished with college. after you are done, you can save thousands by consolidating them. you only get ONE opportunity to consolidate private student loans, so you want to wait until you are done. it is very good because it locks in a single interest rate, and you only have to pay one company, rather than several. it just makes your life so much easier. just try to get a fixed rate if you can.
  3. dawncs says:
    Yes, there are advantages to consolidating your student loans. Instead of making several payments a month, you will be making a single payment, and it could mean more money in your budget for other things. Also, you could extend out your payments in order to make it fit your budget. However, I do not recommend consolidating your student loans until the 6 month grace period is almost over because in some cases, it will end your grace period. The only bad reason not to consolidate your student loans is if you qualify for a loan forgiveness program in either the teaching or medical professions because some loan forgiveness programs will not handle consolidated loans. Good luck!
  4. payingcollege says:
    Most students consolidate (federal student loans) for two reasons: one, to get one monthly bill instead of multiple bills to keep track of, and two, to extend their repayment term, so that the monthly payment amount is lower. Keep in mind that if you pay the minimum amount each month, you’ll end up paying more interest over the life of the loan (just like a credit card) so it’s smart to start paying more than the minimum as soon as you can afford to.

    By law, lenders are required to use the same interest rate formula for Consolidation Loans. However, many lenders offer interest-rate reductions for paying on time or via direct debit. It is important to read the fine print and understand how you become qualified for or disqualified for a lender’s borrower benefits programs. Beyond savings, you should consider customer service, flexible repayment options, online account access and applications, reputation and industry experience when selecting a lender.

    Sallie Mae has a lot of good info on their site, including an FAQ and a quick interactive tool that will show you how much you could save if you consolidate.
    http://www.salliemae.com/after_graduation/manage_your_loans/consolidate_student_loans/federal/student_loan_consolidation.htm

Leave a Reply

Connect with Facebook

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Not finding what you're looking for?
Do a custom search of our entire site:

Get Adobe Flash player